Question 1

________ management involves decisions regarding how much money to retain in a liquid form and how to allocate funds among short-term investment instruments.

Accepted Answer

A)  Investment 
B)  Money 
C)  Credit 
D)  Liquidity 
A)  Investment 
B)  Money 
C)  Credit 
D)  Liquidity

Question 2

Match the goals in the first column with the items in the second column:

-long-term goal

Accepted Answer

The answer of Match the goals in the first column...

Question 3

Most investments are subject to ________, which is the uncertainty surrounding their potential return.

Accepted Answer

The answer of Most investments are subject to ________, which...

Question 4

List the six components of a financial plan.

Accepted Answer

(A) BUDGETING AND TAX PLANNING

Question 5

Which of the following is not a decision involved in managing your liquidity?

Accepted Answer

A)  Deciding how much money to keep in savings 
B)  Choosing between credit cards 
C)  Determining how much money to save versus how much to spend 
D)  Building and maintaining a monthly/yearly budget with allocations to expenses and investments 
A)  Deciding how much money to keep in savings 
B)  Choosing between credit cards 
C)  Determining how much money to save versus how much to spend 
D)  Building and maintaining a monthly/yearly budget with allocations to expenses and investments

Question 6

Your financial plan is usually strongly influenced by

Accepted Answer

A)  your parents. 
B)  your tolerance for risk and your self-discipline. 
C)  your peers. 
D)  your age. 
A)  your parents. 
B)  your tolerance for risk and your self-discipline. 
C)  your peers. 
D)  your age.

Question 7

Your ability to access funds to cover any short-term cash deficiencies is your ________.

Accepted Answer

The answer of Your ability to access funds to cover...

Question 8

A measure of your wealth is

Accepted Answer

A)  the highest level of education you've attained. 
B)  the amount of your annual income. 
C)  the current market value of what you own minus the value of what you owe. 
D)  your tax bracket. 
A)  the highest level of education you've attained. 
B)  the amount of your annual income. 
C)  the current market value of what you own minus the value of what you owe. 
D)  your tax bracket.

Question 9

Your decision about one component of your financial plan can affect all other components. Which statement is true?

Accepted Answer

A)  The amount of life insurance you choose to carry has no effect on your future estate value. 
B)  There will never be any trade-offs to consider when making decisions about your financial plan. 
C)  If you make poor investment decisions, you may have to work longer than planned. 
D)  You should contribute all of your extra money to your retirement account even if it means you don't have money available for products and services today. 
A)  The amount of life insurance you choose to carry has no effect on your future estate value. 
B)  There will never be any trade-offs to consider when making decisions about your financial plan. 
C)  If you make poor investment decisions, you may have to work longer than planned. 
D)  You should contribute all of your extra money to your retirement account even if it means you don't have money available for products and services today.

Question 10

Use the following description of terms to answer the matching questions below:
A) forecasting future expenses and savings
B) uncertainty on a potential return on an investment
C) what you own
D) determining how much money you should set aside for retirement
E) what you owe
F) decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
G) determining how your wealth will be distributed before or upon your death
H) current value of what you own minus what you owe
I) source of current information about a variety of topics
J) access to funds to cover any short-term cash deficiencies
-risk

Accepted Answer

The answer of Use the following description of terms to...

Question 11

What is the core purpose of buying insurance?

Accepted Answer

A)  Protect your wealth and assets 
B)  Make sure you make money on any claim 
C)  Insurance is an expense a careful investor needs to minimize 
D)  Make sure you leave an estate when you are gone 
A)  Protect your wealth and assets 
B)  Make sure you make money on any claim 
C)  Insurance is an expense a careful investor needs to minimize 
D)  Make sure you leave an estate when you are gone

Question 12

Retirement planning should begin

Accepted Answer

A)  as early as possible in order that you accumulate sufficient funds for retirement. 
B)  as soon as you start working full time. 
C)  a few years before you plan on retiring. 
D)  you do not need to plan since Social Security and your firm's pension will be sufficient. 
A)  as early as possible in order that you accumulate sufficient funds for retirement. 
B)  as soon as you start working full time. 
C)  a few years before you plan on retiring. 
D)  you do not need to plan since Social Security and your firm's pension will be sufficient.

Question 13

Making personal finance decisions enhances your employability because

Accepted Answer

A)  employers prefer to hire people with significant assets. 
B)  making decisions increases your decisiveness. 
C)  you are managing yourself and showing initiative. 
D)  None of these are correct. 
A)  employers prefer to hire people with significant assets. 
B)  making decisions increases your decisiveness. 
C)  you are managing yourself and showing initiative. 
D)  None of these are correct.

Question 14

Which of the following would not help protect you from unethical or incompetent advice from a financial adviser?

Accepted Answer

A)  Educating yourself on various financial products 
B)  Testing questionable advice with another financial adviser/broker 
C)  Relying entirely on the adviser as to when to buy and sell 
D)  Knowing your risk tolerance 
A)  Educating yourself on various financial products 
B)  Testing questionable advice with another financial adviser/broker 
C)  Relying entirely on the adviser as to when to buy and sell 
D)  Knowing your risk tolerance

Question 15

Which of the following items is not a liability?

Accepted Answer

A)  The balance due on your credit card 
B)  Your college loans 
C)  The wages you give up to take a class 
D)  An IOU to your roommate 
A)  The balance due on your credit card 
B)  Your college loans 
C)  The wages you give up to take a class 
D)  An IOU to your roommate

Question 16

________ involves having access to funds to cover any short-term cash needs.

Accepted Answer

A)  Investment 
B)  Money 
C)  Liquidity 
D)  Risk 
A)  Investment 
B)  Money 
C)  Liquidity 
D)  Risk

Question 17

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

Accepted Answer

A) True 
 B)False

Question 18

A plan for ________ is needed to determine how much you could afford to borrow, the length of the loan, and how to select a loan that charges competitive interest rates.

Accepted Answer

A)  buying 
B)  financing 
C)  spending 
D)  saving 
A)  buying 
B)  financing 
C)  spending 
D)  saving

Question 19

After your financial plan is developed it should be

Accepted Answer

A)  locked away for safe-keeping so it isn't stolen. 
B)  reviewed every five years. 
C)  monitored and updated annually. 
D)  sold to others. 
A)  locked away for safe-keeping so it isn't stolen. 
B)  reviewed every five years. 
C)  monitored and updated annually. 
D)  sold to others.

Question 20

Organizational skills are an important component in developing a personal financial plan because

Accepted Answer

A)  decisions related to one component of the plan may affect all other components. 
B)  you can apply organizational skills on the job. 
C)  it is hard to make a decision when your desk is a mess. 
D)  Both A and B are correct. 
A)  decisions related to one component of the plan may affect all other components. 
B)  you can apply organizational skills on the job. 
C)  it is hard to make a decision when your desk is a mess. 
D)  Both A and B are correct.

________ management involves decisions regarding how much money to retain in a liquid form and how to allocate funds among short-term investment instruments.

Match the goals in the first column with the items in the second column: -long-term goal

Most investments are subject to ________, which is the uncertainty surrounding their potential return.

List the six components of a financial plan.

Which of the following is not a decision involved in managing your liquidity?

Your financial plan is usually strongly influenced by

Your ability to access funds to cover any short-term cash deficiencies is your ________.

A measure of your wealth is

Your decision about one component of your financial plan can affect all other components. Which statement is true?

What is the core purpose of buying insurance?

Retirement planning should begin

Making personal finance decisions enhances your employability because

Which of the following would not help protect you from unethical or incompetent advice from a financial adviser?

Which of the following items is not a liability?

________ involves having access to funds to cover any short-term cash needs.

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

A plan for ________ is needed to determine how much you could afford to borrow, the length of the loan, and how to select a loan that charges competitive interest rates.

After your financial plan is developed it should be

Organizational skills are an important component in developing a personal financial plan because

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Exam 1: Overview of a Financial Plan

________ management involves decisions regarding how much money to retain in a liquid form and how to allocate funds among short-term investment instruments.

Match the goals in the first column with the items in the second column: -long-term goal

Most investments are subject to ________, which is the uncertainty surrounding their potential return.

List the six components of a financial plan.

Which of the following is not a decision involved in managing your liquidity?

Your financial plan is usually strongly influenced by

Your ability to access funds to cover any short-term cash deficiencies is your ________.

A measure of your wealth is

Your decision about one component of your financial plan can affect all other components. Which statement is true?

What is the core purpose of buying insurance?

Retirement planning should begin

Making personal finance decisions enhances your employability because

Which of the following would not help protect you from unethical or incompetent advice from a financial adviser?

Which of the following items is not a liability?

________ involves having access to funds to cover any short-term cash needs.

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

A plan for ________ is needed to determine how much you could afford to borrow, the length of the loan, and how to select a loan that charges competitive interest rates.

After your financial plan is developed it should be

Organizational skills are an important component in developing a personal financial plan because

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters