Question 1

Debt is another word for liability.

Accepted Answer

A) True 
 B)False

Question 2

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 Consumer Price Index is a measure of [unemployment | inflation].

Accepted Answer

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

Question 3

The term most closely associated with quality of life is

Accepted Answer

A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money. 
A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money.

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.
-It is [fairly simple | impossible] to find a financial plan that will work for everyone.

Accepted Answer

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

Question 5

The amount of money we set aside for future consumption will be determined by

Accepted Answer

A)  our level of current wealth. 
B)  how much we currently earn and spend. 
C)  our education level. 
D)  the current needs of our family. 
E)  the cost of life's necessities. 
A)  our level of current wealth. 
B)  how much we currently earn and spend. 
C)  our education level. 
D)  the current needs of our family. 
E)  the cost of life's necessities.

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.
-[Disney stock | Your car] would be considered a financial asset.

Accepted Answer

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

Question 7

An example of a liquid asset is:

Accepted Answer

A)  stock 
B)  cash 
C)  automobile 
D)  mutual funds 
E)  retirement fund 
A)  stock 
B)  cash 
C)  automobile 
D)  mutual funds 
E)  retirement fund

Question 8

Your house is an example of a tangible asset.

Accepted Answer

A) True 
 B)False

Question 9

Employee benefits may include

Accepted Answer

A)  retirement plans 
B)  health insurance 
C)  employee discounts 
D)  tuition reimbursements 
E)  all of the above 
A)  retirement plans 
B)  health insurance 
C)  employee discounts 
D)  tuition reimbursements 
E)  all of the above

Question 10

Government places controls on the personal financial environment by use of

Accepted Answer

A)  taxation and fiscal policy. 
B)  taxation and regulation. 
C)  taxation and competition. 
D)  regulation and competition. 
E)  regulation and fiscal policy. 
A)  taxation and fiscal policy. 
B)  taxation and regulation. 
C)  taxation and competition. 
D)  regulation and competition. 
E)  regulation and fiscal policy.

Question 11

When setting financial goals,one should typically start by setting

Accepted Answer

A)  short-term goals. 
B)  Intermediate-term goals. 
C)  long-term goals. 
D)  a and b 
E)  b and c 
A)  short-term goals. 
B)  Intermediate-term goals. 
C)  long-term goals. 
D)  a and b 
E)  b and c

Question 12

Your income is directly related to your

Accepted Answer

A)  geographic location. 
B)  age. 
C)  education. 
D)  all of these 
E)  none of these 
A)  geographic location. 
B)  age. 
C)  education. 
D)  all of these 
E)  none of these

Question 13

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Accepted Answer

A) True 
 B)False

Question 14

Long-term goals are typically for periods of over 6 years.

Accepted Answer

A) True 
 B)False

Question 15

Consumers affect businesses by their choices of what goods and services to purchase and by choosing whether they will spend or save their incomes.

Accepted Answer

A) True 
 B)False

Question 16

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.
-Typically,your salary will be [higher | lower] if you live in a large metropolitan area rather than a small town or rural area.

Accepted Answer

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

Question 17

Sam and Lele are in their late 20s with 3 young children.Their most important financial planning concerns would probably include all of the following except

Accepted Answer

A)  asset acquisition planning. 
B)  liability and insurance planning. 
C)  retirement and estate planning. 
D)  savings and investment planning. 
E)  employee benefit planning. 
A)  asset acquisition planning. 
B)  liability and insurance planning. 
C)  retirement and estate planning. 
D)  savings and investment planning. 
E)  employee benefit planning.

Question 18

A person making $35,000 and spending $30,800 has an average propensity to consume of 80%.

Accepted Answer

A) True 
 B)False

Question 19

Short-term goals include things one wants to achieve in a year or less.

Accepted Answer

A) True 
 B)False

Question 20

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or group.

Accepted Answer

A) True 
 B)False

Debt is another word for liability.

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 Consumer Price Index is a measure of [unemployment | inflation].

The term most closely associated with quality of life 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. -It is [fairly simple | impossible] to find a financial plan that will work for everyone.

The amount of money we set aside for future consumption will be determined by

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. -[Disney stock | Your car] would be considered a financial asset.

An example of a liquid asset is:

Your house is an example of a tangible asset.

Employee benefits may include

Government places controls on the personal financial environment by use of

When setting financial goals,one should typically start by setting

Your income is directly related to your

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Long-term goals are typically for periods of over 6 years.

Consumers affect businesses by their choices of what goods and services to purchase and by choosing whether they will spend or save their incomes.

Sam and Lele are in their late 20s with 3 young children.Their most important financial planning concerns would probably include all of the following except

A person making $35,000 and spending $30,800 has an average propensity to consume of 80%.

Short-term goals include things one wants to achieve in a year or less.

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or group.

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

Debt is another word for liability.

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 Consumer Price Index is a measure of [unemployment | inflation].

The term most closely associated with quality of life 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. -It is [fairly simple | impossible] to find a financial plan that will work for everyone.

The amount of money we set aside for future consumption will be determined by

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. -[Disney stock | Your car] would be considered a financial asset.

An example of a liquid asset is:

Your house is an example of a tangible asset.

Employee benefits may include

Government places controls on the personal financial environment by use of

When setting financial goals,one should typically start by setting

Your income is directly related to your

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Long-term goals are typically for periods of over 6 years.

Consumers affect businesses by their choices of what goods and services to purchase and by choosing whether they will spend or save their incomes.

Sam and Lele are in their late 20s with 3 young children.Their most important financial planning concerns would probably include all of the following except

A person making $35,000 and spending $30,800 has an average propensity to consume of 80%.

Short-term goals include things one wants to achieve in a year or less.

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or group.

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