Question 1

Medical expenses, clothing, and telephone are examples of fixed expenses.

Accepted Answer

A) True 
 B)False

Question 2

Spending money on current living expenses reduces the amount you can use for saving and investing for long-term financial security is an example of a(n):

Accepted Answer

A) Opportunity cost 
B) Cash flow management 
C) Spending habits 
D) Savings plan 
A) Opportunity cost 
B) Cash flow management 
C) Spending habits 
D) Savings plan

Question 3

Changes in the cost of living are

Accepted Answer

A) different in variousgeographic areas. 
B) the same for different locations. 
C) constant from month to month. 
D) the same for all goods and services. 
E) not a factor when preparing a budget. 
A) different in variousgeographic areas. 
B) the same for different locations. 
C) constant from month to month. 
D) the same for all goods and services. 
E) not a factor when preparing a budget.

Question 4

Warranties are commonly associated with ____________ purchases.

Accepted Answer

A) investment 
B) insurance 
C) consumer 
D) financial services 
E) credit 
A) investment 
B) insurance 
C) consumer 
D) financial services 
E) credit

Question 5

Which of the following would be considered a long-term liability?

Accepted Answer

A) A charge accountpayment 
B) A mortgage 
C) An installment loan 
D) An amount due for taxes 
E) The amount due on a credit card 
A) A charge accountpayment 
B) A mortgage 
C) An installment loan 
D) An amount due for taxes 
E) The amount due on a credit card

Question 6

A decrease in net worth would be the result of:

Accepted Answer

A) income greaterthan expenses for a month. 
B) expenses greaterthan income for a month. 
C) assets greaterthan expenses. 
D) increased earnings on the job. 
E) income and expenses equal for a month. 
A) income greaterthan expenses for a month. 
B) expenses greaterthan income for a month. 
C) assets greaterthan expenses. 
D) increased earnings on the job. 
E) income and expenses equal for a month.

Question 7

A common deduction from a person's paycheck is for

Accepted Answer

A) interest. 
B) unemployment 
C) rent. 
D) taxes. 
E) current liabilities. 
A) interest. 
B) unemployment 
C) rent. 
D) taxes. 
E) current liabilities.

Question 8

Current liabilities differ from long-term liabilities based on

Accepted Answer

A) the amount owed. 
B) the financial situation of the creditor. 
C) the interest rate charged. 
D) when the debt is due. 
E) current economic conditions. 
A) the amount owed. 
B) the financial situation of the creditor. 
C) the interest rate charged. 
D) when the debt is due. 
E) current economic conditions.

Question 9

Money manage refers to

Accepted Answer

A) Day-to-day financial activities 
B) Long term financial activities 
C) Asset management 
D) Investment management 
A) Day-to-day financial activities 
B) Long term financial activities 
C) Asset management 
D) Investment management

Question 10

An exampleof a personal and employment document is a:

Accepted Answer

A) Social Insurance card. 
B) passbook. 
C) budget 
D) property tax bill. 
E) lease. 
A) Social Insurance card. 
B) passbook. 
C) budget 
D) property tax bill. 
E) lease.

Question 11

Personal recordscurrent budget, cheque book(s) and bank statements.

Accepted Answer

A) True 
 B)False

Question 12

The Crown family has a difficult time staying on a budget.In an effort to actually see what funds are available for various expenses, a ____________ budget would be most appropriate.

Accepted Answer

A) written 
B) computerized 
C) physical 
D) deficit 
E) mental 
A) written 
B) computerized 
C) physical 
D) deficit 
E) mental

Question 13

A cash flow statement is a record of how a person or family has earned and spent their money.

Accepted Answer

A) True 
 B)False

Question 14

Insolvency is the inability to pay debts by the due date, because liabilities exceed the value of assets.

Accepted Answer

A) True 
 B)False

Question 15

The paymentitems that should be budgeted first are

Accepted Answer

A) variable expenses. 
B) investment funds. 
C) fixed expenses. 
D) unplanned living expenses. 
E) entertainment expenses. 
A) variable expenses. 
B) investment funds. 
C) fixed expenses. 
D) unplanned living expenses. 
E) entertainment expenses.

Question 16

Opportunity cost refers to:

Accepted Answer

A) current spending habits. 
B) changing economic conditions that affect a person's cost of living. 
C) storage facilities to make financial documents easily available. 
D) trade-offs associated with financial decisions. 
E) avoiding the use of consumer credit. 
A) current spending habits. 
B) changing economic conditions that affect a person's cost of living. 
C) storage facilities to make financial documents easily available. 
D) trade-offs associated with financial decisions. 
E) avoiding the use of consumer credit.

Question 17

Most income tax documents and records should be kept in a safety deposit box.

Accepted Answer

A) True 
 B)False

Question 18

The components of money management activities are:

Accepted Answer

A) Sorting, Creating personal financial statements and implementing a budget 
B) Balancing incomeswith expenses 
C) Saving for retirement 
D) Balancing currentspending with the opportunity cost 
A) Sorting, Creating personal financial statements and implementing a budget 
B) Balancing incomeswith expenses 
C) Saving for retirement 
D) Balancing currentspending with the opportunity cost

Question 19

A family with $170,000 in assets and $152,000 of liabilities would have a net worth of:

Accepted Answer

A) $70,000. 
B) $22,000. 
C) $18,000 
D) $92,000. 
E) $41,000. 
A) $70,000. 
B) $22,000. 
C) $18,000 
D) $92,000. 
E) $41,000.

Question 20

Leveraged investing in common shares is expected to increase your net worth.

Accepted Answer

A) True 
 B)False

Medical expenses, clothing, and telephone are examples of fixed expenses.

Spending money on current living expenses reduces the amount you can use for saving and investing for long-term financial security is an example of a(n):

Changes in the cost of living are

Warranties are commonly associated with ____________ purchases.

Which of the following would be considered a long-term liability?

A decrease in net worth would be the result of:

A common deduction from a person's paycheck is for

Current liabilities differ from long-term liabilities based on

Money manage refers to

An exampleof a personal and employment document is a:

Personal recordscurrent budget, cheque book(s) and bank statements.

The Crown family has a difficult time staying on a budget.In an effort to actually see what funds are available for various expenses, a ____________ budget would be most appropriate.

A cash flow statement is a record of how a person or family has earned and spent their money.

Insolvency is the inability to pay debts by the due date, because liabilities exceed the value of assets.

The paymentitems that should be budgeted first are

Opportunity cost refers to:

Most income tax documents and records should be kept in a safety deposit box.

The components of money management activities are:

A family with $170,000 in assets and $152,000 of liabilities would have a net worth of:

Leveraged investing in common shares is expected to increase your net worth.

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 2: Money Management Strategy: Financial Statements and Budgeting

Medical expenses, clothing, and telephone are examples of fixed expenses.

Spending money on current living expenses reduces the amount you can use for saving and investing for long-term financial security is an example of a(n):

Changes in the cost of living are

Warranties are commonly associated with ____________ purchases.

Which of the following would be considered a long-term liability?

A decrease in net worth would be the result of:

A common deduction from a person's paycheck is for

Current liabilities differ from long-term liabilities based on

Money manage refers to

An exampleof a personal and employment document is a:

Personal recordscurrent budget, cheque book(s) and bank statements.

The Crown family has a difficult time staying on a budget.In an effort to actually see what funds are available for various expenses, a ____________ budget would be most appropriate.

A cash flow statement is a record of how a person or family has earned and spent their money.

Insolvency is the inability to pay debts by the due date, because liabilities exceed the value of assets.

The paymentitems that should be budgeted first are

Opportunity cost refers to:

Most income tax documents and records should be kept in a safety deposit box.

The components of money management activities are:

A family with $170,000 in assets and $152,000 of liabilities would have a net worth of:

Leveraged investing in common shares is expected to increase your net worth.

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters