Question 1

The decisions you make in career planning are independent of the decisions you make in financial planning.

Accepted Answer

A) True 
 B)False  False

Question 2

Becky graduated with a master's degree in personal financial planning.After working for two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year after spending on her current needs.What is her average propensity to consume?

Accepted Answer

A) 16.7% 
B) 25.5% 
C) 75.7% 
D) 83.3% 
E) 95.5% 
A) 16.7% 
B) 25.5% 
C) 75.7% 
D) 83.3% 
E) 95.5% D

Question 3

At which of the following stages does an individual tend to have the highest income?

Accepted Answer

A) Early childhood 
B) Career development 
C) Pre-retirement 
D) High school and college 
E) Pre-family independence 
A) Early childhood 
B) Career development 
C) Pre-retirement 
D) High school and college 
E) Pre-family independence C

Question 4

A key determinant of an individual's quality of life is his or her:

Accepted Answer

A) tax bill. 
B) financial goal. 
C) wealth. 
D) motivation. 
E) growth potential. 
A) tax bill. 
B) financial goal. 
C) wealth. 
D) motivation. 
E) growth potential.

Question 5

The average propensity to consume refers to the:

Accepted Answer

A) dollars of income spent on luxury goods. 
B) dollars of income saved by an individual. 
C) expenditure on the basic necessities of life. 
D) percentage of income spent for current consumption. 
E) fact that people with higher propensity to consume earn lower income. 
A) dollars of income spent on luxury goods. 
B) dollars of income saved by an individual. 
C) expenditure on the basic necessities of life. 
D) percentage of income spent for current consumption. 
E) fact that people with higher propensity to consume earn lower income.

Question 6

Financial plans include setting goal dates,which are:

Accepted Answer

A) dates in the future when the goals are expected to be achieved. 
B) dates in the future when the goals will be compared with other goals that have already been achieved. 
C) dates in the past when the goals were revised and redefined. 
D) dates in the past when the goals were set. 
E) dates in the future when the goals will be discussed with family members. 
A) dates in the future when the goals are expected to be achieved. 
B) dates in the future when the goals will be compared with other goals that have already been achieved. 
C) dates in the past when the goals were revised and redefined. 
D) dates in the past when the goals were set. 
E) dates in the future when the goals will be discussed with family members.

Question 7

Ben invests $10,000 at a rate of interest of 5 percent for 40 years.Which of the following is true about the return on the investment?

Accepted Answer

A) Ben will receive more money at the end of 30 years compared to the money received at the end of 40 years. 
B) Ben will receive more money at a 3 percent rate of interest instead of the existing rate. 
C) Ben will receive an interest of $5,000 at the end of ten years. 
D) Ben will receive no interest on his investment at the end of the investment period. 
E) Ben will receive a significant amount at the end of the investment period,due to the feature of compounding. 
A) Ben will receive more money at the end of 30 years compared to the money received at the end of 40 years. 
B) Ben will receive more money at a 3 percent rate of interest instead of the existing rate. 
C) Ben will receive an interest of $5,000 at the end of ten years. 
D) Ben will receive no interest on his investment at the end of the investment period. 
E) Ben will receive a significant amount at the end of the investment period,due to the feature of compounding.

Question 8

The purchase of ____________ is an example of the purchase of a financial asset. ​

Accepted Answer

A) a home 
B) stocks 
C) a car 
D) jewelry 
A) a home 
B) stocks 
C) a car 
D) jewelry

Question 9

The Government places constraints on the personal financial environment by the use of:

Accepted Answer

A) leverage policy. 
B) taxation. 
C) competition. 
D) budgetary deficits. 
E) free-enterprise system. 
A) leverage policy. 
B) taxation. 
C) competition. 
D) budgetary deficits. 
E) free-enterprise system.

Question 10

Short-term planning should include creating and maintaining an emergency fund with six to nine months' worth of income.

Accepted Answer

A) True 
 B)False

Question 11

Commission-based financial planners charge fees for the financial products they sell.

Accepted Answer

A) True 
 B)False

Question 12

Personal ____________ is a systematic process that considers important elements of an individual's monetary affairs in order to fulfill monetary goals. ​

Accepted Answer

A) conflict resolving 
B) financial planning 
C) standard of living 
D) legal counselling 
A) conflict resolving 
B) financial planning 
C) standard of living 
D) legal counselling

Question 13

Stocks,bonds,and mutual funds are _____.

Accepted Answer

A) physical assets 
B) intangible assets 
C) fixed assets 
D) national assets 
E) real assets 
A) physical assets 
B) intangible assets 
C) fixed assets 
D) national assets 
E) real assets

Question 14

A carefully developed financial plan should provide for saving a portion of ____________ for deferred,future spending. ​

Accepted Answer

A) retirement funds 
B) tax penalty 
C) current income 
D) future income 
A) retirement funds 
B) tax penalty 
C) current income 
D) future income

Question 15

Two persons with significantly different income can have equal average propensities to consume because of differences in their standards of living.

Accepted Answer

A) True 
 B)False

Question 16

Geographic factors affect your earning power.

Accepted Answer

A) True 
 B)False

Question 17

Personal financial plans help individuals have the same standard of living across the country.

Accepted Answer

A) True 
 B)False

Question 18

Financial planning for young people primarily concerns:

Accepted Answer

A) career. 
B) insurance. 
C) investment. 
D) taxes. 
E) retirement. 
A) career. 
B) insurance. 
C) investment. 
D) taxes. 
E) retirement.

Question 19

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or a family.

Accepted Answer

A) True 
 B)False

Question 20

Inflation refers to:

Accepted Answer

A) increasing prices. 
B) declining population. 
C) increasing tax evasion. 
D) increasing stock index. 
E) decreasing birth rate. 
A) increasing prices. 
B) declining population. 
C) increasing tax evasion. 
D) increasing stock index. 
E) decreasing birth rate.

The decisions you make in career planning are independent of the decisions you make in financial planning.

Becky graduated with a master's degree in personal financial planning.After working for two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year after spending on her current needs.What is her average propensity to consume?

At which of the following stages does an individual tend to have the highest income?

A key determinant of an individual's quality of life is his or her:

The average propensity to consume refers to the:

Financial plans include setting goal dates,which are:

Ben invests $10,000 at a rate of interest of 5 percent for 40 years.Which of the following is true about the return on the investment?

The purchase of ____________ is an example of the purchase of a financial asset.

The Government places constraints on the personal financial environment by the use of:

Short-term planning should include creating and maintaining an emergency fund with six to nine months' worth of income.

Commission-based financial planners charge fees for the financial products they sell.

Personal ____________ is a systematic process that considers important elements of an individual's monetary affairs in order to fulfill monetary goals.

Stocks,bonds,and mutual funds are _____.

A carefully developed financial plan should provide for saving a portion of ____________ for deferred,future spending.

Two persons with significantly different income can have equal average propensities to consume because of differences in their standards of living.

Geographic factors affect your earning power.

Personal financial plans help individuals have the same standard of living across the country.

Financial planning for young people primarily concerns:

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or a family.

Inflation refers to:

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

The decisions you make in career planning are independent of the decisions you make in financial planning.

Becky graduated with a master's degree in personal financial planning.After working for two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year after spending on her current needs.What is her average propensity to consume?

At which of the following stages does an individual tend to have the highest income?

A key determinant of an individual's quality of life is his or her:

The average propensity to consume refers to the:

Financial plans include setting goal dates,which are:

Ben invests $10,000 at a rate of interest of 5 percent for 40 years.Which of the following is true about the return on the investment?

The purchase of ____________ is an example of the purchase of a financial asset. ​

The Government places constraints on the personal financial environment by the use of:

Short-term planning should include creating and maintaining an emergency fund with six to nine months' worth of income.

Commission-based financial planners charge fees for the financial products they sell.

Personal ____________ is a systematic process that considers important elements of an individual's monetary affairs in order to fulfill monetary goals. ​

Stocks,bonds,and mutual funds are _____.

A carefully developed financial plan should provide for saving a portion of ____________ for deferred,future spending. ​

Two persons with significantly different income can have equal average propensities to consume because of differences in their standards of living.

Geographic factors affect your earning power.

Personal financial plans help individuals have the same standard of living across the country.

Financial planning for young people primarily concerns:

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or a family.

Inflation refers to:

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

The purchase of ____________ is an example of the purchase of a financial asset.

Personal ____________ is a systematic process that considers important elements of an individual's monetary affairs in order to fulfill monetary goals.

A carefully developed financial plan should provide for saving a portion of ____________ for deferred,future spending.