Question 1

Present value is the current value of an asset (or stream of assets) that will be received in the future.

Accepted Answer

A) True 
 B)False

Question 2

Interest rates and inflation climb at what phase of the economic cycle?

Accepted Answer

A) expansion. 
B) peak. 
C) contraction. 
D) trough. 
A) expansion. 
B) peak. 
C) contraction. 
D) trough.

Question 3

A commission-only financial planner/broker charges an up-front fee for providing services.

Accepted Answer

A) True 
 B)False

Question 4

Personal finance is the study of personal and family resources considered important in achieving financial success.

Accepted Answer

A) True 
 B)False

Question 5

The typical U.S.recession is marked by an average economic decline of 6 percent.

Accepted Answer

A) True 
 B)False

Question 6

Compounding serves as the basis of all time value of money considerations.

Accepted Answer

A) True 
 B)False

Question 7

The rate of interest and the inflation rate generally move in opposite directions; when one goes up,the other goes down.

Accepted Answer

A) True 
 B)False

Question 8

Jim spent $300 on some new clothes rather than using this money to going to his college team's away game last weekend.The benefits of the trip are the ____ cost of buying the clothing.

Accepted Answer

A) marginal 
B) utility 
C) opportunity 
D) present 
A) marginal 
B) utility 
C) opportunity 
D) present

Question 9

The preferred stage of the economic cycle is the contraction phase.

Accepted Answer

A) True 
 B)False

Question 10

When faced with an unexpected major expense,you should consider withdrawing money from your retirement plan.

Accepted Answer

A) True 
 B)False

Question 11

Grandmother Smith has just put $12,000 into an investment earning 6 percent a year for her granddaughter's college education.Approximately how much will be in the account in ten years assuming all the interest is left in the account?

Accepted Answer

A) $19,200 
B) $21,490 
C) $16,320 
D) $21,259 
A) $19,200 
B) $21,490 
C) $16,320 
D) $21,259

Question 12

A financial advisor who is also a broker-dealer is held to a

Accepted Answer

A) fiduciary standard. 
B) fee-only standard. 
C) commision-only standard. 
D) suitability standard. 
A) fiduciary standard. 
B) fee-only standard. 
C) commision-only standard. 
D) suitability standard.

Question 13

The index of leading economic indicators includes eight components of growth.

Accepted Answer

A) True 
 B)False

Question 14

Premiums paid by a worker for disability and long-term care insurance are often more expensive when purchased through one's employer.

Accepted Answer

A) True 
 B)False

Question 15

The amount you pay to purchase a health care plan is called the deductible.

Accepted Answer

A) True 
 B)False

Question 16

Deflation occurs in an economy when there is a contraction in the money supply.

Accepted Answer

A) True 
 B)False

Question 17

Financial objectives are rarely achieved without restraining

Accepted Answer

A) current consumption. 
B) savings. 
C) investment. 
D) future earnings. 
A) current consumption. 
B) savings. 
C) investment. 
D) future earnings.

Question 18

One's average federal income tax rate is generally higher than one's marginal tax rate.

Accepted Answer

A) True 
 B)False

Question 19

Procyclical economic indicators are those that predict a positive change in the economy.

Accepted Answer

A) True 
 B)False

Question 20

Housing values are appreciating at a rate of 3 percent a year.Approximately how much will your $100,000 house be worth in ten years if this rate of appreciation continues?

Accepted Answer

A) $134,390 
B) $146,320 
C) $155,080 
D) $174,410 
A) $134,390 
B) $146,320 
C) $155,080 
D) $174,410

Present value is the current value of an asset (or stream of assets) that will be received in the future.

Interest rates and inflation climb at what phase of the economic cycle?

A commission-only financial planner/broker charges an up-front fee for providing services.

Personal finance is the study of personal and family resources considered important in achieving financial success.

The typical U.S.recession is marked by an average economic decline of 6 percent.

Compounding serves as the basis of all time value of money considerations.

The rate of interest and the inflation rate generally move in opposite directions; when one goes up,the other goes down.

Jim spent $300 on some new clothes rather than using this money to going to his college team's away game last weekend.The benefits of the trip are the ____ cost of buying the clothing.

The preferred stage of the economic cycle is the contraction phase.

When faced with an unexpected major expense,you should consider withdrawing money from your retirement plan.

Grandmother Smith has just put $12,000 into an investment earning 6 percent a year for her granddaughter's college education.Approximately how much will be in the account in ten years assuming all the interest is left in the account?

A financial advisor who is also a broker-dealer is held to a

The index of leading economic indicators includes eight components of growth.

Premiums paid by a worker for disability and long-term care insurance are often more expensive when purchased through one's employer.

The amount you pay to purchase a health care plan is called the deductible.

Deflation occurs in an economy when there is a contraction in the money supply.

Financial objectives are rarely achieved without restraining

One's average federal income tax rate is generally higher than one's marginal tax rate.

Procyclical economic indicators are those that predict a positive change in the economy.

Housing values are appreciating at a rate of 3 percent a year.Approximately how much will your $100,000 house be worth in ten years if this rate of appreciation continues?

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

Present value is the current value of an asset (or stream of assets) that will be received in the future.

Interest rates and inflation climb at what phase of the economic cycle?

A commission-only financial planner/broker charges an up-front fee for providing services.

Personal finance is the study of personal and family resources considered important in achieving financial success.

The typical U.S.recession is marked by an average economic decline of 6 percent.

Compounding serves as the basis of all time value of money considerations.

The rate of interest and the inflation rate generally move in opposite directions; when one goes up,the other goes down.

Jim spent $300 on some new clothes rather than using this money to going to his college team's away game last weekend.The benefits of the trip are the ____ cost of buying the clothing.

The preferred stage of the economic cycle is the contraction phase.

When faced with an unexpected major expense,you should consider withdrawing money from your retirement plan.

Grandmother Smith has just put $12,000 into an investment earning 6 percent a year for her granddaughter's college education.Approximately how much will be in the account in ten years assuming all the interest is left in the account?

A financial advisor who is also a broker-dealer is held to a

The index of leading economic indicators includes eight components of growth.

Premiums paid by a worker for disability and long-term care insurance are often more expensive when purchased through one's employer.

The amount you pay to purchase a health care plan is called the deductible.

Deflation occurs in an economy when there is a contraction in the money supply.

Financial objectives are rarely achieved without restraining

One's average federal income tax rate is generally higher than one's marginal tax rate.

Procyclical economic indicators are those that predict a positive change in the economy.

Housing values are appreciating at a rate of 3 percent a year.Approximately how much will your $100,000 house be worth in ten years if this rate of appreciation continues?

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