Question 1

Martha is 60 and has a very high net worth. Her most pressing financial concern is probably:

Accepted Answer

A) asset acquisition planning. 
B) liability planning. 
C) estate planning. 
D) insurance planning. 
E) savings planning. 
A) asset acquisition planning. 
B) liability planning. 
C) estate planning. 
D) insurance planning. 
E) savings planning.

Question 2

Saving $400 for a large, flat-screen TV within the next 4 months is an example of a short-term goal.

Accepted Answer

A) True 
 B)False

Question 3

When you get your first job, you should make a good financial plan that you can follow without making changes until you retire.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about the effects of an economic recession is true?

Accepted Answer

A) An increase in the standard of living 
B) A decrease in unemployment 
C) An increase in the expenditure on luxury goods 
D) A decrease in the value of retirement accounts 
E) An increase in the value of insurance purchased 
A) An increase in the standard of living 
B) A decrease in unemployment 
C) An increase in the expenditure on luxury goods 
D) A decrease in the value of retirement accounts 
E) An increase in the value of insurance purchased

Question 5

Career planning:

Accepted Answer

A) does not require any goal setting. 
B) is not related to personal financial planning. 
C) does not influence an individual's lifetime earnings. 
D) impacts an employer's stability. 
E) helps in improving professional satisfaction. 
A) does not require any goal setting. 
B) is not related to personal financial planning. 
C) does not influence an individual's lifetime earnings. 
D) impacts an employer's stability. 
E) helps in improving professional satisfaction.

Question 6

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) as soon as you start earning. 
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) as soon as you start earning.

Question 7

Which of the following statements about the earning power of an individual is true?

Accepted Answer

A) Income varies across different geographic locations due to varying costs of living. 
B) Heads of households who have less formal education earn more. 
C) Career planning does not help in improving earning potential. 
D) People who are very old have high incomes. 
E) Marital status has no impact on an individual's personal income. 
A) Income varies across different geographic locations due to varying costs of living. 
B) Heads of households who have less formal education earn more. 
C) Career planning does not help in improving earning potential. 
D) People who are very old have high incomes. 
E) Marital status has no impact on an individual's personal income.

Question 8

Employee benefits may include all of the following EXCEPT:

Accepted Answer

A) asset purchases. 
B) life insurance. 
C) child-care assistance programs. 
D) pension payments. 
E) subsidized food services. 
A) asset purchases. 
B) life insurance. 
C) child-care assistance programs. 
D) pension payments. 
E) subsidized food services.

Question 9

Which of the following is included in employee benefits packages?

Accepted Answer

A) Career plans 
B) Retirement plans 
C) Tax deferment plans 
D) Personal asset plans 
E) Bankruptcy recovery plans 
A) Career plans 
B) Retirement plans 
C) Tax deferment plans 
D) Personal asset plans 
E) Bankruptcy recovery plans

Question 10

Setting long- and short-term career goals helps in career planning.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A person's ______   leads to an increase in income potential in his or her career.

Accepted Answer

A) formal education 
B) social status 
C) marital status 
D) corporate loyalty 
E) family size 
A) formal education 
B) social status 
C) marital status 
D) corporate loyalty 
E) family size

Question 13

Financial planning takes place in a dynamic economic environment created by the actions of the government, business, and consumers.

Accepted Answer

A) True 
 B)False

Question 14

Tangible assets are earning assets that are held for the returns they promise.

Accepted Answer

A) True 
 B)False

Question 15

The consumer is:

Accepted Answer

A) a member of the business group. 
B) the central player in the financial planning environment. 
C) an important force in the government. 
D) an advocacy group that fights corruption in the government. 
E) relatively unimportant to the business or the government. 
A) a member of the business group. 
B) the central player in the financial planning environment. 
C) an important force in the government. 
D) an advocacy group that fights corruption in the government. 
E) relatively unimportant to the business or the government.

Question 16

An individual's quality of life is closely tied to his or her:

Accepted Answer

A) political orientation. 
B) charitable contributions. 
C) pollution control efforts. 
D) standard of living. 
E) educational qualifications. 
A) political orientation. 
B) charitable contributions. 
C) pollution control efforts. 
D) standard of living. 
E) educational qualifications.

Question 17

Estate planning involves:

Accepted Answer

A) considering how your wealth can be most effectively passed on to your heirs. 
B) determining the income you need to maintain. 
C) the dissolution of all privately held corporations. 
D) the valuation and auctioning of your valuables by hiring a professional tax planner. 
E) planning for retirement. 
A) considering how your wealth can be most effectively passed on to your heirs. 
B) determining the income you need to maintain. 
C) the dissolution of all privately held corporations. 
D) the valuation and auctioning of your valuables by hiring a professional tax planner. 
E) planning for retirement.

Question 18

In ______ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

Accepted Answer

A) cafeteria 
B) fixed-benefit 
C) estate 
D) profit-sharing 
E) saving 
A) cafeteria 
B) fixed-benefit 
C) estate 
D) profit-sharing 
E) saving

Question 19

Which of the following will legally reduce an investor's tax liability?

Accepted Answer

A) Tax evasion 
B) Tax shelter 
C) Tax penalty 
D) Tax accounting 
E) Tax portfolio 
A) Tax evasion 
B) Tax shelter 
C) Tax penalty 
D) Tax accounting 
E) Tax portfolio

Question 20

Which of the following statements is true about Andy if the inflation rate is increasing every year by 1 percent and there is no growth in his salary?

Accepted Answer

A) Andy can afford to buy more luxury items as prices go down. 
B) Andy's purchasing power will decrease. 
C) Andy's employment opportunities will increase. 
D) The lack of growth in Andy's salary will increase the average inflation rate . 
E) Andy's cost of borrowing will be reduced. 
A) Andy can afford to buy more luxury items as prices go down. 
B) Andy's purchasing power will decrease. 
C) Andy's employment opportunities will increase. 
D) The lack of growth in Andy's salary will increase the average inflation rate . 
E) Andy's cost of borrowing will be reduced.

Martha is 60 and has a very high net worth. Her most pressing financial concern is probably:

Saving $400 for a large, flat-screen TV within the next 4 months is an example of a short-term goal.

When you get your first job, you should make a good financial plan that you can follow without making changes until you retire.

Which of the following statements about the effects of an economic recession is true?

Career planning:

Ideally, retirement planning should begin:

Which of the following statements about the earning power of an individual is true?

Employee benefits may include all of the following EXCEPT:

Which of the following is included in employee benefits packages?

Setting long- and short-term career goals helps in career planning.

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

A person's ______ leads to an increase in income potential in his or her career.

Financial planning takes place in a dynamic economic environment created by the actions of the government, business, and consumers.

Tangible assets are earning assets that are held for the returns they promise.

The consumer is:

An individual's quality of life is closely tied to his or her:

Estate planning involves:

In ______ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

Which of the following will legally reduce an investor's tax liability?

Which of the following statements is true about Andy if the inflation rate is increasing every year by 1 percent and there is no growth in his salary?

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

Martha is 60 and has a very high net worth. Her most pressing financial concern is probably:

Saving $400 for a large, flat-screen TV within the next 4 months is an example of a short-term goal.

When you get your first job, you should make a good financial plan that you can follow without making changes until you retire.

Which of the following statements about the effects of an economic recession is true?

Career planning:

Ideally, retirement planning should begin:

Which of the following statements about the earning power of an individual is true?

Employee benefits may include all of the following EXCEPT:

Which of the following is included in employee benefits packages?

Setting long- and short-term career goals helps in career planning.

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

A person's ______ leads to an increase in income potential in his or her career.

Financial planning takes place in a dynamic economic environment created by the actions of the government, business, and consumers.

Tangible assets are earning assets that are held for the returns they promise.

The consumer is:

An individual's quality of life is closely tied to his or her:

Estate planning involves:

In ______ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

Which of the following will legally reduce an investor's tax liability?

Which of the following statements is true about Andy if the inflation rate is increasing every year by 1 percent and there is no growth in his salary?

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