Question 1

Interest rates earned on short-term investments are generally lower than interest rates earned on longer-term investments.

Accepted Answer

A) True 
 B)False  True

Question 2

Financial success is defined as the achievement of

Accepted Answer

A) a financially secure retirement. 
B) financial aspirations that are desired, planned, or attempted. 
C) vast wealth 
D) a comfortable lifestyle. 
A) a financially secure retirement. 
B) financial aspirations that are desired, planned, or attempted. 
C) vast wealth 
D) a comfortable lifestyle. B

Question 3

The opportunity cost of a decision is the value of the next best alternative that must be foregone.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following statements is correct?

Accepted Answer

A) Long-term interest rates are generally higher than short-term interest rates. 
B) Stock market investors are positively affected when inflation rises. 
C) The degree of inflation risk is higher for short-term lending. 
D) During times of high inflation, interest rates on new loans for cars, homes, and credit cards fall. 
A) Long-term interest rates are generally higher than short-term interest rates. 
B) Stock market investors are positively affected when inflation rises. 
C) The degree of inflation risk is higher for short-term lending. 
D) During times of high inflation, interest rates on new loans for cars, homes, and credit cards fall.

Question 5

Inflation is defined as a steady rise in the general level of prices.

Accepted Answer

A) True 
 B)False

Question 6

If your income increased from $23,000 to $26,000 during a period when the rate of inflation was 4 percent,your real income after the raise was

Accepted Answer

A) $23,000. 
B) $24,000. 
C) $25,000. 
D) $26,000 
A) $23,000. 
B) $24,000. 
C) $25,000. 
D) $26,000

Question 7

Paying expenses with pretax dollars

Accepted Answer

A) increases taxable income. 
B) increases take-home pay. 
C) increases after-tax income. 
D) is only a good idea for high income earners. 
A) increases taxable income. 
B) increases take-home pay. 
C) increases after-tax income. 
D) is only a good idea for high income earners.

Question 8

The present value of an annuity is the ____ worth of a stream of payments to be received in the future

Accepted Answer

A) inflated 
B) estimated 
C) previous 
D) current 
A) inflated 
B) estimated 
C) previous 
D) current

Question 9

Marginal cost is the incremental cost of one more incremental unit of something.

Accepted Answer

A) True 
 B)False

Question 10

One's standard of living comprises all his or her current consumption.

Accepted Answer

A) True 
 B)False

Question 11

Funds in a dependent care FSA account may be used to pay for the care of a dependent as long as he or she is younger than age 18.

Accepted Answer

A) True 
 B)False

Question 12

Mike and Patty are saving monthly so they can buy a home,but they are currently renting an apartment.The apartment is part of

Accepted Answer

A) their standard of living. 
B) their level of living. 
C) their savings. 
D) personal inflation rate. 
A) their standard of living. 
B) their level of living. 
C) their savings. 
D) personal inflation rate.

Question 13

An advantage of an employer-sponsored tax-sheltered retirement plan is the tax-deferred growth of contributions and earnings.

Accepted Answer

A) True 
 B)False

Question 14

Opportunity costs are strictly financial in nature and do not involve personal tastes and preferences

Accepted Answer

A) True 
 B)False

Question 15

Deflation involves falling prices.

Accepted Answer

A) True 
 B)False

Question 16

Financial security is marked by having high income.

Accepted Answer

A) True 
 B)False

Question 17

Simple interest is the interest computed on principal only,without adding the interest to the principal to determine future interest.

Accepted Answer

A) True 
 B)False

Question 18

Tax-sheltered income is preferable to tax-exempt income

Accepted Answer

A) True 
 B)False

Question 19

Which of the following should be the easiest for a person to forecast?

Accepted Answer

A) Income 
B) Inflation 
C) Interest rates 
D) Economic growth 
A) Income 
B) Inflation 
C) Interest rates 
D) Economic growth

Question 20

Which of the following is a way to receive free money to deposit into a tax-sheltered retirement plan?

Accepted Answer

A) Start early to boost your retirement. 
B) Take advantage of your employer's "match." 
C) Making early withdrawals from a tax-sheltered retirement plan. 
D) Opening an HSA. 
A) Start early to boost your retirement. 
B) Take advantage of your employer's "match." 
C) Making early withdrawals from a tax-sheltered retirement plan. 
D) Opening an HSA.

Interest rates earned on short-term investments are generally lower than interest rates earned on longer-term investments.

Financial success is defined as the achievement of

The opportunity cost of a decision is the value of the next best alternative that must be foregone.

Which of the following statements is correct?

Inflation is defined as a steady rise in the general level of prices.

If your income increased from $23,000 to $26,000 during a period when the rate of inflation was 4 percent,your real income after the raise was

Paying expenses with pretax dollars

The present value of an annuity is the ____ worth of a stream of payments to be received in the future

Marginal cost is the incremental cost of one more incremental unit of something.

One's standard of living comprises all his or her current consumption.

Funds in a dependent care FSA account may be used to pay for the care of a dependent as long as he or she is younger than age 18.

Mike and Patty are saving monthly so they can buy a home,but they are currently renting an apartment.The apartment is part of

An advantage of an employer-sponsored tax-sheltered retirement plan is the tax-deferred growth of contributions and earnings.

Opportunity costs are strictly financial in nature and do not involve personal tastes and preferences

Deflation involves falling prices.

Financial security is marked by having high income.

Simple interest is the interest computed on principal only,without adding the interest to the principal to determine future interest.

Tax-sheltered income is preferable to tax-exempt income

Which of the following should be the easiest for a person to forecast?

Which of the following is a way to receive free money to deposit into a tax-sheltered retirement plan?

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 1: Understanding Personal Finance

Interest rates earned on short-term investments are generally lower than interest rates earned on longer-term investments.

Financial success is defined as the achievement of

The opportunity cost of a decision is the value of the next best alternative that must be foregone.

Which of the following statements is correct?

Inflation is defined as a steady rise in the general level of prices.

If your income increased from $23,000 to $26,000 during a period when the rate of inflation was 4 percent,your real income after the raise was

Paying expenses with pretax dollars

The present value of an annuity is the ____ worth of a stream of payments to be received in the future

Marginal cost is the incremental cost of one more incremental unit of something.

One's standard of living comprises all his or her current consumption.

Funds in a dependent care FSA account may be used to pay for the care of a dependent as long as he or she is younger than age 18.

Mike and Patty are saving monthly so they can buy a home,but they are currently renting an apartment.The apartment is part of

An advantage of an employer-sponsored tax-sheltered retirement plan is the tax-deferred growth of contributions and earnings.

Opportunity costs are strictly financial in nature and do not involve personal tastes and preferences

Deflation involves falling prices.

Financial security is marked by having high income.

Simple interest is the interest computed on principal only,without adding the interest to the principal to determine future interest.

Tax-sheltered income is preferable to tax-exempt income

Which of the following should be the easiest for a person to forecast?

Which of the following is a way to receive free money to deposit into a tax-sheltered retirement plan?

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters