Question 1

Analyzing your current financial position is a part of which step in the financial planning process?

Accepted Answer

A)  First 
B)  Second 
C)  Third 
D)  Fourth 
E)  Fifth 
A)  First 
B)  Second 
C)  Third 
D)  Fourth 
E)  Fifth

Question 2

The success of a financial plan will be determined by:

Accepted Answer

A)  the amount of income available. 
B)  the stage of the adult life cycle. 
C)  a person's tax status. 
D)  how resources are used. 
E)  current economic conditions. 
A)  the amount of income available. 
B)  the stage of the adult life cycle. 
C)  a person's tax status. 
D)  how resources are used. 
E)  current economic conditions.

Question 3

When an individual makes a purchase without considering the financial consequences of that purchase, ignores the ______________ aspect of financial planning.

Accepted Answer

A)  borrowing 
B)  risk management 
C)  spending 
D)  retirement and estate planning 
E)  obtaining 
A)  borrowing 
B)  risk management 
C)  spending 
D)  retirement and estate planning 
E)  obtaining

Question 4

Which type of computation would a person use to determine current value of a desired amount for the future?

Accepted Answer

A)  Simple interest 
B)  Future value of a single amount 
C)  Future value of a series of deposits 
D)  Present value of a single amount 
E)  Present value of a series of deposits 
A)  Simple interest 
B)  Future value of a single amount 
C)  Future value of a series of deposits 
D)  Present value of a single amount 
E)  Present value of a series of deposits

Question 5

____________ risk refers to the danger of lost buying power during times of rising prices.

Accepted Answer

A)  Trade-off 
B)  Economic 
C)  Personal 
D)  Inflation 
E)  Interest-rate 
A)  Trade-off 
B)  Economic 
C)  Personal 
D)  Inflation 
E)  Interest-rate

Question 6

One aspect of financial planning is to make wise decisions as to what to purchase and when to purchase it. Which aspect of financial planning does this deal with?

Accepted Answer

A)  Borrowing 
B)  Spending 
C)  Managing Risk 
D)  Investing 
E)  Retirement and Estate Planning 
A)  Borrowing 
B)  Spending 
C)  Managing Risk 
D)  Investing 
E)  Retirement and Estate Planning

Question 7

Lynn Roy has decided to take retirement from her job and use the time she has earned to travel around the world. She has decided to start her trip around the world in Europe by train and bus and will use her savings to pay for her trip. Which step in the financial planning process does this scenario demonstrate?

Accepted Answer

A)  Developing her financial goals 
B)  Identifying alternative courses of action 
C)  Evaluating her alternatives 
D)  Implementing her financial plan 
E)  Reviewing and revising her financial plan 
A)  Developing her financial goals 
B)  Identifying alternative courses of action 
C)  Evaluating her alternatives 
D)  Implementing her financial plan 
E)  Reviewing and revising her financial plan

Question 8

The time value of money refers to:

Accepted Answer

A)  personal opportunity costs such as time lost on an activity. 
B)  financial decisions that require borrowing funds from a financial institution. 
C)  changes in interest rates due to changes in the supply and demand for money in our economy. 
D)  increases in an amount of money as a result of interest. 
E)  changing demographic trends in our society. 
A)  personal opportunity costs such as time lost on an activity. 
B)  financial decisions that require borrowing funds from a financial institution. 
C)  changes in interest rates due to changes in the supply and demand for money in our economy. 
D)  increases in an amount of money as a result of interest. 
E)  changing demographic trends in our society.

Question 9

Who is most likely to benefit from inflation?

Accepted Answer

A)  Retired people 
B)  Lenders 
C)  Borrowers 
D)  Low-income consumers 
E)  Government 
A)  Retired people 
B)  Lenders 
C)  Borrowers 
D)  Low-income consumers 
E)  Government

Question 10

The first step of the financial planning process is to:

Accepted Answer

A)  develop financial goals. 
B)  implement the financial plan. 
C)  analyze your current personal and financial situation. 
D)  evaluate and revise your actions. 
E)  create a financial plan of action. 
A)  develop financial goals. 
B)  implement the financial plan. 
C)  analyze your current personal and financial situation. 
D)  evaluate and revise your actions. 
E)  create a financial plan of action.

Question 11

As Jean Tyler plans to set aside funds for her young children's college education, she is setting a(n) ____________ goal.

Accepted Answer

A)  intermediate 
B)  long-term 
C)  short-term 
D)  intangible 
E)  durable 
A)  intermediate 
B)  long-term 
C)  short-term 
D)  intangible 
E)  durable

Question 12

Sources for financial planning can be found from:

Accepted Answer

A)  print and media. 
B)  digital sources. 
C)  financial institutions. 
D)  financial experts. 
E)  All of these. 
A)  print and media. 
B)  digital sources. 
C)  financial institutions. 
D)  financial experts. 
E)  All of these.

Question 13

When prices are rising at a rate of 3 percent, the cost of products and services would double in ______ years.

Accepted Answer

A)  3 
B)  6 
C)  12 
D)  24 
E)  36 
A)  3 
B)  6 
C)  12 
D)  24 
E)  36

Question 14

Opportunity cost refers to:

Accepted Answer

A)  money needed for major consumer purchases. 
B)  what a person gives up by making a choice. 
C)  the amount paid for taxes when a purchase is made. 
D)  current interest rates. 
E)  evaluating different alternatives for financial decisions. 
A)  money needed for major consumer purchases. 
B)  what a person gives up by making a choice. 
C)  the amount paid for taxes when a purchase is made. 
D)  current interest rates. 
E)  evaluating different alternatives for financial decisions.

Question 15

Explain why borrowers benefit more than lenders in times of high inflation.

Accepted Answer

The answer of Explain why borrowers benefit more than lenders...

Question 16

A financial plan is another name for a budget.

Accepted Answer

A) True 
 B)False

Question 17

Mary Sander's new job is very demanding. She regularly works long hours and on the weekends. As a result, Mary has not had much time for her family and friends. This is an example of:

Accepted Answer

A)  deflation. 
B)  financial opportunity cost. 
C)  personal opportunity cost. 
D)  time value of money. 
E)  inflation. 
A)  deflation. 
B)  financial opportunity cost. 
C)  personal opportunity cost. 
D)  time value of money. 
E)  inflation.

Question 18

If inflation is increasing at 3 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

Accepted Answer

A)  30 years 
B)  24 years 
C)  18 years 
D)  12 years 
E)  6 years 
A)  30 years 
B)  24 years 
C)  18 years 
D)  12 years 
E)  6 years

Question 19

Most decisions have only a few alternatives from which to choose.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following goals would be the easiest to implement and measure its accomplishment?

Accepted Answer

A)  "Reduce our debt payments." 
B)  "Save funds for an annual vacation." 
C)  "Save $100 a month to create a $4,000 emergency fund." 
D)  "Invest $2,000 a year for retirement." 
E)  "Increase our emergency fund." 
A)  "Reduce our debt payments." 
B)  "Save funds for an annual vacation." 
C)  "Save $100 a month to create a $4,000 emergency fund." 
D)  "Invest $2,000 a year for retirement." 
E)  "Increase our emergency fund."

Analyzing your current financial position is a part of which step in the financial planning process?

The success of a financial plan will be determined by:

When an individual makes a purchase without considering the financial consequences of that purchase, ignores the ______________ aspect of financial planning.

Which type of computation would a person use to determine current value of a desired amount for the future?

____________ risk refers to the danger of lost buying power during times of rising prices.

One aspect of financial planning is to make wise decisions as to what to purchase and when to purchase it. Which aspect of financial planning does this deal with?

The time value of money refers to:

Who is most likely to benefit from inflation?

The first step of the financial planning process is to:

As Jean Tyler plans to set aside funds for her young children's college education, she is setting a(n) ____________ goal.

Sources for financial planning can be found from:

When prices are rising at a rate of 3 percent, the cost of products and services would double in ______ years.

Opportunity cost refers to:

Explain why borrowers benefit more than lenders in times of high inflation.

A financial plan is another name for a budget.

Mary Sander's new job is very demanding. She regularly works long hours and on the weekends. As a result, Mary has not had much time for her family and friends. This is an example of:

If inflation is increasing at 3 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

Most decisions have only a few alternatives from which to choose.

Which of the following goals would be the easiest to implement and measure its accomplishment?

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 1: Personal Finance Basics and the Time Value of Money

Analyzing your current financial position is a part of which step in the financial planning process?

The success of a financial plan will be determined by:

When an individual makes a purchase without considering the financial consequences of that purchase, ignores the ______________ aspect of financial planning.

Which type of computation would a person use to determine current value of a desired amount for the future?

____________ risk refers to the danger of lost buying power during times of rising prices.

One aspect of financial planning is to make wise decisions as to what to purchase and when to purchase it. Which aspect of financial planning does this deal with?

The time value of money refers to:

Who is most likely to benefit from inflation?

The first step of the financial planning process is to:

As Jean Tyler plans to set aside funds for her young children's college education, she is setting a(n) ____________ goal.

Sources for financial planning can be found from:

When prices are rising at a rate of 3 percent, the cost of products and services would double in ______ years.

Opportunity cost refers to:

Explain why borrowers benefit more than lenders in times of high inflation.

A financial plan is another name for a budget.

Mary Sander's new job is very demanding. She regularly works long hours and on the weekends. As a result, Mary has not had much time for her family and friends. This is an example of:

If inflation is increasing at 3 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

Most decisions have only a few alternatives from which to choose.

Which of the following goals would be the easiest to implement and measure its accomplishment?

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters