Question 1

Current consumption is inversely related to saving for the future.

Accepted Answer

A) True 
 B)False

Question 2

An unemployment rate of 8 percent would be indicative of

Accepted Answer

A)  an expansion. 
B)  a recession. 
C)  a recovery. 
D)  a depression. 
E)  none of the above. 
A)  an expansion. 
B)  a recession. 
C)  a recovery. 
D)  a depression. 
E)  none of the above.

Question 3

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

Accepted Answer

A) True 
 B)False

Question 4

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.
-Financial planning [does | does not] guarantee a sound financial future.

Accepted Answer

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

Question 5

A financial goal that would be important in all stages of the life cycle is creating and maintaining an emergency fund.

Accepted Answer

A) True 
 B)False

Question 6

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 income of household heads increase until age [55 | 65] then income starts decreasing.

Accepted Answer

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

Question 7

Tax planning is most commonly done to

Accepted Answer

A)  reduce debt balances. 
B)  change income patterns to avoid taxes. 
C)  minimize taxes. 
D)  pay extra taxes. 
E)  learn the tax code. 
A)  reduce debt balances. 
B)  change income patterns to avoid taxes. 
C)  minimize taxes. 
D)  pay extra taxes. 
E)  learn the tax code.

Question 8

Financial assets are paper assets,such as savings accounts and securities.

Accepted Answer

A) True 
 B)False

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.
-For most people,employee benefits are of [little | major] importance.

Accepted Answer

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

Question 10

Cities with higher costs of living also experience higher rates of inflation.

Accepted Answer

A) True 
 B)False

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.
-[More than | less than] the majority of Americans believe that money cannot buy happiness.

Accepted Answer

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

Question 12

A ____ is an example of a real asset.

Accepted Answer

A)  stock 
B)  bond 
C)  mutual fund. 
D)  savings account 
E)  stamp collection 
A)  stock 
B)  bond 
C)  mutual fund. 
D)  savings account 
E)  stamp collection

Question 13

About 20% of Americans say retirement planning is their most pressing financial concern.

Accepted Answer

A) True 
 B)False

Question 14

Accumulating wealth for later years is called estate planning.

Accepted Answer

A) True 
 B)False

Question 15

The individual consumer is

Accepted Answer

A)  a member of the business group. 
B)  the party around which the personal financial environment is centered. 
C)  an important force in government. 
D)  an advocacy group. 
E)  relatively unimportant to business or government. 
A)  a member of the business group. 
B)  the party around which the personal financial environment is centered. 
C)  an important force in government. 
D)  an advocacy group. 
E)  relatively unimportant to business or government.

Question 16

Typically,higher levels of education are rewarded with higher income over the lifetime.

Accepted Answer

A) True 
 B)False

Question 17

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

Accepted Answer

A) True 
 B)False

Question 18

The average propensity to consume refers to the

Accepted Answer

A)  dollars of income spent for current consumption. 
B)  percentage of income saved. 
C)  expenditures for the minimum necessities of life. 
D)  percentage of income spent for current consumption. 
E)  fact that people with higher incomes spend more for the necessities of life. 
A)  dollars of income spent for current consumption. 
B)  percentage of income saved. 
C)  expenditures for the minimum necessities of life. 
D)  percentage of income spent for current consumption. 
E)  fact that people with higher incomes spend more for the necessities of life.

Question 19

Ideally,retirement planning should begin

Accepted Answer

A)  during the year before retirement. 
B)  when the last child has left home. 
C)  as soon as the mortgage is paid off. 
D)  when you get married. 
E)  none of these. 
A)  during the year before retirement. 
B)  when the last child has left home. 
C)  as soon as the mortgage is paid off. 
D)  when you get married. 
E)  none of these.

Question 20

Government controls consumers and businesses by regulation and taxation.

Accepted Answer

A) True 
 B)False

Current consumption is inversely related to saving for the future.

An unemployment rate of 8 percent would be indicative of

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

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. -Financial planning [does | does not] guarantee a sound financial future.

A financial goal that would be important in all stages of the life cycle is creating and maintaining an emergency fund.

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 income of household heads increase until age [55 | 65] then income starts decreasing.

Tax planning is most commonly done to

Financial assets are paper assets,such as savings accounts and securities.

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. -For most people,employee benefits are of [little | major] importance.

Cities with higher costs of living also experience higher rates of inflation.

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. -[More than | less than] the majority of Americans believe that money cannot buy happiness.

A ____ is an example of a real asset.

About 20% of Americans say retirement planning is their most pressing financial concern.

Accumulating wealth for later years is called estate planning.

The individual consumer is

Typically,higher levels of education are rewarded with higher income over the lifetime.

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

The average propensity to consume refers to the

Ideally,retirement planning should begin

Government controls consumers and businesses by regulation and taxation.

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

Current consumption is inversely related to saving for the future.

An unemployment rate of 8 percent would be indicative of

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

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. -Financial planning [does | does not] guarantee a sound financial future.

A financial goal that would be important in all stages of the life cycle is creating and maintaining an emergency fund.

Tax planning is most commonly done to

Financial assets are paper assets,such as savings accounts and securities.

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. -For most people,employee benefits are of [little | major] importance.

Cities with higher costs of living also experience higher rates of inflation.

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. -[More than | less than] the majority of Americans believe that money cannot buy happiness.

A ____ is an example of a real asset.

About 20% of Americans say retirement planning is their most pressing financial concern.

Accumulating wealth for later years is called estate planning.

The individual consumer is

Typically,higher levels of education are rewarded with higher income over the lifetime.

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

The average propensity to consume refers to the

Ideally,retirement planning should begin

Government controls consumers and businesses by regulation and taxation.

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