Question 1

The Great Recession that began in December,2007

Accepted Answer

A) lasted eighteen months. 
B) lasted eighteen months 
C) lasted 4 years. 
D) continues to this day. 
A) lasted eighteen months. 
B) lasted eighteen months 
C) lasted 4 years. 
D) continues to this day.

Question 2

A single person with a monthly taxable income of $7,000 in the 28 percent marginal tax bracket forgoes consumption and instead places $450 into a tax-sheltered retirement plan every month.What are the yearly tax savings due to these retirement contributions?

Accepted Answer

A) $1,120 
B) $5,400 
C) $1,512 
D) $1,316 
A) $1,120 
B) $5,400 
C) $1,512 
D) $1,316

Question 3

What statement is not accurate regarding participation in an HSA?

Accepted Answer

A) A health savings account is intended for people who have a high-deductible health care plan. 
B) Employees make tax-deductible contributions to their HSAs to be used for eligible expenses. 
C) The employee invests HSA funds and the money in the account grows tax-free 
D) Employers are prohibited from making contributions to their employees' HSA. 
A) A health savings account is intended for people who have a high-deductible health care plan. 
B) Employees make tax-deductible contributions to their HSAs to be used for eligible expenses. 
C) The employee invests HSA funds and the money in the account grows tax-free 
D) Employers are prohibited from making contributions to their employees' HSA.

Question 4

The sum total of all economic activity is broadly measured by the gross domestic product.

Accepted Answer

A) True 
 B)False

Question 5

____ is the current value of an asset that will be received in the future.

Accepted Answer

A) Present value 
B) Future value 
C) A benefit 
D) Inflation 
A) Present value 
B) Future value 
C) A benefit 
D) Inflation

Question 6

A match is an employer contribution according to the amount the employee contributes.

Accepted Answer

A) True 
 B)False

Question 7

A nudge is a policy of employers and/or the government to help get consumers to do what is good for them.

Accepted Answer

A) True 
 B)False

Question 8

A business cycle is a pattern of economic activity that includes an expansion,peak,contraction,and trough.

Accepted Answer

A) True 
 B)False

Question 9

Present value is also known as discredited value.

Accepted Answer

A) True 
 B)False

Question 10

A cafeteria plan,also known as a flexible benefit plan,is an employer-sponsored plan that gives the employee a choice of selecting either cash or one or more qualifying nontaxable benefits.

Accepted Answer

A) True 
 B)False

Question 11

Some employee benefits are tax-sheltered,such as flexible spending accounts and retirement plans.

Accepted Answer

A) True 
 B)False

Question 12

Rick Palmer received a $2,500 raise this year.This increased his salary as an associate TV producer from $45,000 to $47,500.What percentage increase in nominal income did Rick receive?

Accepted Answer

A) 2.5 percent 
B) 5.3 percent 
C) 5.6 percent 
D) 7.8 percent 
A) 2.5 percent 
B) 5.3 percent 
C) 5.6 percent 
D) 7.8 percent

Question 13

Tax-exempt income is preferable to tax-sheltered income.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an advantage of participating in your employer's retirement plan?

Accepted Answer

A) Tax-deductible contributions 
B) Employer's matching contributions 
C) Tax-deferred growth 
D) Higher take home pay 
A) Tax-deductible contributions 
B) Employer's matching contributions 
C) Tax-deferred growth 
D) Higher take home pay

Question 15

By law,all financial planners must be Certified Financial Planners (CFPs).

Accepted Answer

A) True 
 B)False

Question 16

By saving and investing,people are much more likely to have funds available for future consumption.

Accepted Answer

A) True 
 B)False

Question 17

A financial planner who adheres to a fiduciary standard must always act in the best interest of the client regardless of how it might affect the advisor.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is the one key interest rate to focus on when trying to forecast interest rate trends in the future?

Accepted Answer

A) Prime rate 
B) Federal funds rate 
C) Discount rate 
D) Mortgage rate 
A) Prime rate 
B) Federal funds rate 
C) Discount rate 
D) Mortgage rate

Question 19

If the consumer price index was 100 in 1984 and 244 in 2015,how much did prices increase during this period?

Accepted Answer

A) 36 percent 
B) 72 percent 
C) 144 percent 
D) 244 percent 
A) 36 percent 
B) 72 percent 
C) 144 percent 
D) 244 percent

Question 20

Retirement planning is a process that should begin three to five years before retirement.

Accepted Answer

A) True 
 B)False

The Great Recession that began in December,2007

A single person with a monthly taxable income of $7,000 in the 28 percent marginal tax bracket forgoes consumption and instead places $450 into a tax-sheltered retirement plan every month.What are the yearly tax savings due to these retirement contributions?

What statement is not accurate regarding participation in an HSA?

The sum total of all economic activity is broadly measured by the gross domestic product.

____ is the current value of an asset that will be received in the future.

A match is an employer contribution according to the amount the employee contributes.

A nudge is a policy of employers and/or the government to help get consumers to do what is good for them.

A business cycle is a pattern of economic activity that includes an expansion,peak,contraction,and trough.

Present value is also known as discredited value.

A cafeteria plan,also known as a flexible benefit plan,is an employer-sponsored plan that gives the employee a choice of selecting either cash or one or more qualifying nontaxable benefits.

Some employee benefits are tax-sheltered,such as flexible spending accounts and retirement plans.

Rick Palmer received a $2,500 raise this year.This increased his salary as an associate TV producer from $45,000 to $47,500.What percentage increase in nominal income did Rick receive?

Tax-exempt income is preferable to tax-sheltered income.

Which of the following is not an advantage of participating in your employer's retirement plan?

By law,all financial planners must be Certified Financial Planners (CFPs).

By saving and investing,people are much more likely to have funds available for future consumption.

A financial planner who adheres to a fiduciary standard must always act in the best interest of the client regardless of how it might affect the advisor.

Which of the following is the one key interest rate to focus on when trying to forecast interest rate trends in the future?

If the consumer price index was 100 in 1984 and 244 in 2015,how much did prices increase during this period?

Retirement planning is a process that should begin three to five years before retirement.

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

The Great Recession that began in December,2007

A single person with a monthly taxable income of $7,000 in the 28 percent marginal tax bracket forgoes consumption and instead places $450 into a tax-sheltered retirement plan every month.What are the yearly tax savings due to these retirement contributions?

What statement is not accurate regarding participation in an HSA?

The sum total of all economic activity is broadly measured by the gross domestic product.

____ is the current value of an asset that will be received in the future.

A match is an employer contribution according to the amount the employee contributes.

A nudge is a policy of employers and/or the government to help get consumers to do what is good for them.

A business cycle is a pattern of economic activity that includes an expansion,peak,contraction,and trough.

Present value is also known as discredited value.

A cafeteria plan,also known as a flexible benefit plan,is an employer-sponsored plan that gives the employee a choice of selecting either cash or one or more qualifying nontaxable benefits.

Some employee benefits are tax-sheltered,such as flexible spending accounts and retirement plans.

Rick Palmer received a $2,500 raise this year.This increased his salary as an associate TV producer from $45,000 to $47,500.What percentage increase in nominal income did Rick receive?

Tax-exempt income is preferable to tax-sheltered income.

Which of the following is not an advantage of participating in your employer's retirement plan?

By law,all financial planners must be Certified Financial Planners (CFPs).

By saving and investing,people are much more likely to have funds available for future consumption.

A financial planner who adheres to a fiduciary standard must always act in the best interest of the client regardless of how it might affect the advisor.

Which of the following is the one key interest rate to focus on when trying to forecast interest rate trends in the future?

If the consumer price index was 100 in 1984 and 244 in 2015,how much did prices increase during this period?

Retirement planning is a process that should begin three to five years before retirement.

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