Question 1

Financial planning can improve your standard of living.

Accepted Answer

A) True 
 B)False

Question 2

Fee-only financial planners charge commission for the products they sell.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about money and relationships is true?

Accepted Answer

A) It is highly possible to change a partner's financial style. 
B) One of the most important aspects of a marriage is financial compatibility. 
C) Money does not cause emotional issues in any relationship. 
D) The best way to resolve a money dispute is to avoid such a discussion. 
E) Financial planning does not help in resolving conflicts related to money. 
A) It is highly possible to change a partner's financial style. 
B) One of the most important aspects of a marriage is financial compatibility. 
C) Money does not cause emotional issues in any relationship. 
D) The best way to resolve a money dispute is to avoid such a discussion. 
E) Financial planning does not help in resolving conflicts related to money.

Question 4

Professional financial planners:

Accepted Answer

A) provide services on a fee or commission basis. 
B) provide services to wealthy investors only. 
C) set the financial goals of retired investors. 
D) make financial decisions for investors. 
E) are most effective during retirement years. 
A) provide services on a fee or commission basis. 
B) provide services to wealthy investors only. 
C) set the financial goals of retired investors. 
D) make financial decisions for investors. 
E) are most effective during retirement years.

Question 5

Which of the following practices will help in dealing with unexpected negative financial shocks?

Accepted Answer

A) Purchasing low-utility products 
B) Accumulating debt 
C) Acquiring assets with low financial value 
D) Saving money regularly for emergency funds 
E) Planning for retirement 
A) Purchasing low-utility products 
B) Accumulating debt 
C) Acquiring assets with low financial value 
D) Saving money regularly for emergency funds 
E) Planning for retirement

Question 6

You should limit your spending to no more than 20 percent more than what you earn.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following practices helps an individual survive in a financial crisis?

Accepted Answer

A) Spending more than his or her earnings to maintain a good lifestyle 
B) Investing small amounts regularly to achieve long-term financial goals 
C) Establishing an emergency fund with 6 months' worth of income 
D) Developing financial plans only after reaching the highest tax brackets 
E) Planning tax without considering tax shelters 
A) Spending more than his or her earnings to maintain a good lifestyle 
B) Investing small amounts regularly to achieve long-term financial goals 
C) Establishing an emergency fund with 6 months' worth of income 
D) Developing financial plans only after reaching the highest tax brackets 
E) Planning tax without considering tax shelters

Question 8

Most people tend to be more liberal about their expenditures during a recession or crisis.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following age groups tends to have the highest income?

Accepted Answer

A) 18-24 
B) 25-34 
C) 35-44 
D) 45-64 
E) 65 and older 
A) 18-24 
B) 25-34 
C) 35-44 
D) 45-64 
E) 65 and older

Question 10

Stocks, bonds, and mutual funds are _____ assets.

Accepted Answer

A) physical 
B) earning 
C) fixed 
D) tangible 
E) real 
A) physical 
B) earning 
C) fixed 
D) tangible 
E) real

Question 11

_____ is an important part of the conflict resolution process when there are disputes relating to money matters in families.

Accepted Answer

A) Life cycle analysis 
B) Personality development 
C) Financial planning 
D) Personal counseling 
E) Stress management 
A) Life cycle analysis 
B) Personality development 
C) Financial planning 
D) Personal counseling 
E) Stress management

Question 12

The consumer price index (CPI)is a measure of :

Accepted Answer

A) unemployment. 
B) inflation. 
C) stagnation. 
D) recession. 
E) saving. 
A) unemployment. 
B) inflation. 
C) stagnation. 
D) recession. 
E) saving.

Question 13

Retirement planning includes taking advantage of and managing employer-sponsored benefits.

Accepted Answer

A) True 
 B)False

Question 14

The federal government delegates its regulation of economic activity function to businesses and consumers.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) inflation. 
B) the consumer price index. 
C) the purchasing power. 
D) the gross domestic product. 
E) the opportunity cost. 
A) inflation. 
B) the consumer price index. 
C) the purchasing power. 
D) the gross domestic product. 
E) the opportunity cost.

Question 16

A carefully developed financial plan should provide for saving a portion of ____________  for deferred, future spending. ​

Accepted Answer

A) retirement funds 
B) investment funds 
C) current income 
D) future income 
E) tangible assets 
A) retirement funds 
B) investment funds 
C) current income 
D) future income 
E) tangible assets

Question 17

A decrease in the gross domestic product (GDP)would indicate that the economy is experiencing a(n):

Accepted Answer

A) expansion. 
B) contraction. 
C) deflation. 
D) stagflation. 
E) growth spurt. 
A) expansion. 
B) contraction. 
C) deflation. 
D) stagflation. 
E) growth spurt.

Question 18

Financial plans include setting goal dates, which are:

Accepted Answer

A) dates in the future when the goals are expected to be achieved. 
B) dates in the future when the goals will be compared with other goals that have already been achieved. 
C) dates in the past when the goals were revised and redefined. 
D) dates in the past when the goals were set. 
E) dates in the future when the goals will be discussed with family members. 
A) dates in the future when the goals are expected to be achieved. 
B) dates in the future when the goals will be compared with other goals that have already been achieved. 
C) dates in the past when the goals were revised and redefined. 
D) dates in the past when the goals were set. 
E) dates in the future when the goals will be discussed with family members.

Question 19

Which of the following statements about setting long-term goals is true?

Accepted Answer

A) The goals should be very ambitious. 
B) The goals should be realistic. 
C) The goals should be attained in 6 months to a year. 
D) The goals should be easy to meet. 
E) The goals should be set and remain unchanged. 
A) The goals should be very ambitious. 
B) The goals should be realistic. 
C) The goals should be attained in 6 months to a year. 
D) The goals should be easy to meet. 
E) The goals should be set and remain unchanged.

Question 20

The government places constraints on the personal financial environment by the use of:

Accepted Answer

A) leverage policy. 
B) taxation. 
C) competition. 
D) budgetary deficits. 
E) the free-enterprise system. 
A) leverage policy. 
B) taxation. 
C) competition. 
D) budgetary deficits. 
E) the free-enterprise system.

Financial planning can improve your standard of living.

Fee-only financial planners charge commission for the products they sell.

Which of the following statements about money and relationships is true?

Professional financial planners:

Which of the following practices will help in dealing with unexpected negative financial shocks?

You should limit your spending to no more than 20 percent more than what you earn.

Which of the following practices helps an individual survive in a financial crisis?

Most people tend to be more liberal about their expenditures during a recession or crisis.

Which of the following age groups tends to have the highest income?

Stocks, bonds, and mutual funds are _____ assets.

_____ is an important part of the conflict resolution process when there are disputes relating to money matters in families.

The consumer price index (CPI)is a measure of :

Retirement planning includes taking advantage of and managing employer-sponsored benefits.

The federal government delegates its regulation of economic activity function to businesses and consumers.

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

A carefully developed financial plan should provide for saving a portion of ____________ for deferred, future spending.

A decrease in the gross domestic product (GDP)would indicate that the economy is experiencing a(n):

Financial plans include setting goal dates, which are:

Which of the following statements about setting long-term goals is true?

The government places constraints on the personal financial environment by the use of:

Using Financial Statements and Budgets

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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Process

Financial planning can improve your standard of living.

Fee-only financial planners charge commission for the products they sell.

Which of the following statements about money and relationships is true?

Professional financial planners:

Which of the following practices will help in dealing with unexpected negative financial shocks?

You should limit your spending to no more than 20 percent more than what you earn.

Which of the following practices helps an individual survive in a financial crisis?

Most people tend to be more liberal about their expenditures during a recession or crisis.

Which of the following age groups tends to have the highest income?

Stocks, bonds, and mutual funds are _____ assets.

_____ is an important part of the conflict resolution process when there are disputes relating to money matters in families.

The consumer price index (CPI)is a measure of :

Retirement planning includes taking advantage of and managing employer-sponsored benefits.

The federal government delegates its regulation of economic activity function to businesses and consumers.

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

A carefully developed financial plan should provide for saving a portion of ____________ for deferred, future spending. ​

A decrease in the gross domestic product (GDP)would indicate that the economy is experiencing a(n):

Financial plans include setting goal dates, which are:

Which of the following statements about setting long-term goals is true?

The government places constraints on the personal financial environment by the use of:

Using Financial Statements and Budgets

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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

A carefully developed financial plan should provide for saving a portion of ____________ for deferred, future spending.