Question 1

Investments are distinguished from savings on the basis of

Accepted Answer

A)  length of time held. 
B)  initial dollar outlay. 
C)  depreciation. 
D)  voting rights. 
E)  level of risk and expected return. 
A)  length of time held. 
B)  initial dollar outlay. 
C)  depreciation. 
D)  voting rights. 
E)  level of risk and expected return.

Question 2

Utility refers to the amount of satisfaction a person gets from buying certain items.

Accepted Answer

A) True 
 B)False

Question 3

Your corporate stock is an example of a real asset.

Accepted Answer

A) True 
 B)False

Question 4

A personal computer can be very useful in assisting one with their financial planning.

Accepted Answer

A) True 
 B)False

Question 5

Most families find it difficult to discuss money matters.

Accepted Answer

A) True 
 B)False

Question 6

The last step in the financial planning process is to

Accepted Answer

A)  develop financial plans and strategies to achieve goals. 
B)  use financial statements to evaluate results of plans and budgets,taking corrective action as required. 
C)  implement financial plans and strategies. 
D)  redefine goals and revise plans and strategies as personal circumstances change 
E)  periodically develop and implement budgets to monitor and control progress toward goals. 
A)  develop financial plans and strategies to achieve goals. 
B)  use financial statements to evaluate results of plans and budgets,taking corrective action as required. 
C)  implement financial plans and strategies. 
D)  redefine goals and revise plans and strategies as personal circumstances change 
E)  periodically develop and implement budgets to monitor and control progress toward goals.

Question 7

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

Accepted Answer

A)  career. 
B)  employee benefits. 
C)  estate. 
D)  insurance. 
E)  savings. 
A)  career. 
B)  employee benefits. 
C)  estate. 
D)  insurance. 
E)  savings.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-"1 want to accumulate a comfortable retirement fund" [would | would not] be a specific financial goal.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-During the expansion phase of the business cycle,the unemployment rate will [increase | decrease].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Most people graduate from college with [no | some] debts.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-[Money | Inflation] is the common denominator for gauging all financial transactions.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 12

The amount of goods and services each dollar buys at a given point in time is:

Accepted Answer

A)  inflation 
B)  consumer price index (CPI) 
C)  purchasing power 
D)  none of the above 
A)  inflation 
B)  consumer price index (CPI) 
C)  purchasing power 
D)  none of the above

Question 13

Money is

Accepted Answer

A)  the reason for all transactions. 
B)  a medium of exchange. 
C)  the purpose of our economy. 
D)  a medium of consumption. 
E)  a measure of propensity to consume. 
A)  the reason for all transactions. 
B)  a medium of exchange. 
C)  the purpose of our economy. 
D)  a medium of consumption. 
E)  a measure of propensity to consume.

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-After reaching adulthood,your financial goals will [stabilize | continue to change].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 15

Typically people with the lowest incomes tend to be

Accepted Answer

A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless. 
A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless.

Question 16

This is a measure of inflation based on changes in the cost of a market basket of consumer goods and services:

Accepted Answer

A)  inflation 
B)  consumer price index (CPI) 
C)  purchasing power 
D)  none of the above 
A)  inflation 
B)  consumer price index (CPI) 
C)  purchasing power 
D)  none of the above

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The average [self employed | retired] household has higher income.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 18

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-[Women | Men] tend to be more conservative investors.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 20

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

Accepted Answer

A)  16.7% 
B)  25.5% 
C)  75.7% 
D)  83.3% 
E)  95.5% 
A)  16.7% 
B)  25.5% 
C)  75.7% 
D)  83.3% 
E)  95.5%

Investments are distinguished from savings on the basis of

Utility refers to the amount of satisfaction a person gets from buying certain items.

Your corporate stock is an example of a real asset.

A personal computer can be very useful in assisting one with their financial planning.

Most families find it difficult to discuss money matters.

The last step in the financial planning process is to

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Most people graduate from college with [no | some] debts.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Money | Inflation] is the common denominator for gauging all financial transactions.

The amount of goods and services each dollar buys at a given point in time is:

Money is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -After reaching adulthood,your financial goals will [stabilize | continue to change].

Typically people with the lowest incomes tend to be

This is a measure of inflation based on changes in the cost of a market basket of consumer goods and services:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The average [self employed | retired] household has higher income.

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Women | Men] tend to be more conservative investors.

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

Investments are distinguished from savings on the basis of

Utility refers to the amount of satisfaction a person gets from buying certain items.

Your corporate stock is an example of a real asset.

A personal computer can be very useful in assisting one with their financial planning.

Most families find it difficult to discuss money matters.

The last step in the financial planning process is to

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Most people graduate from college with [no | some] debts.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Money | Inflation] is the common denominator for gauging all financial transactions.

The amount of goods and services each dollar buys at a given point in time is:

Money is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -After reaching adulthood,your financial goals will [stabilize | continue to change].

Typically people with the lowest incomes tend to be

This is a measure of inflation based on changes in the cost of a market basket of consumer goods and services:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The average [self employed | retired] household has higher income.

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Women | Men] tend to be more conservative investors.

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters