Question 1

An individual's quality of life is closely tied to his or her:

Accepted Answer

A) political orientation. 
B) charitable contributions. 
C) pollution control efforts. 
D) standard of living. 
E) educational qualifications. 
A) political orientation. 
B) charitable contributions. 
C) pollution control efforts. 
D) standard of living. 
E) educational qualifications.

Question 2

Living costs are constant throughout the country.

Accepted Answer

A) True 
 B)False

Question 3

The need for financial planning declines as your income increases.

Accepted Answer

A) True 
 B)False

Question 4

Accumulating wealth for later years is called estate planning.

Accepted Answer

A) True 
 B)False

Question 5

_____ is an important part of the conflict resolution process when there are disputes relating to money matters in families.

Accepted Answer

A) Life cycle analysis 
B) Personality development 
C) Financial planning 
D) Personal counseling 
E) Stress management 
A) Life cycle analysis 
B) Personality development 
C) Financial planning 
D) Personal counseling 
E) Stress management

Question 6

Fee-only financial planners charge commission for the products they sell.

Accepted Answer

A) True 
 B)False

Question 7

The federal government delegates its regulating economic activity function to businesses and consumers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true about businesses?

Accepted Answer

A) Businesses provide goods and services and receive payment in money. 
B) Businesses frame rules and regulations to maintain the law and order in a country. 
C) Businesses determine the kinds of goods and services that a government will use. 
D) Businesses do not interact with other players in the economy. 
E) Businesses are seldom affected by economic cycles. 
A) Businesses provide goods and services and receive payment in money. 
B) Businesses frame rules and regulations to maintain the law and order in a country. 
C) Businesses determine the kinds of goods and services that a government will use. 
D) Businesses do not interact with other players in the economy. 
E) Businesses are seldom affected by economic cycles.

Question 9

Ideally,retirement planning should begin:

Accepted Answer

A) during the year before retirement. 
B) when the last child has left home. 
C) as soon as the mortgage is paid off. 
D) when one gets married. 
E) as soon as one starts earning. 
A) during the year before retirement. 
B) when the last child has left home. 
C) as soon as the mortgage is paid off. 
D) when one gets married. 
E) as soon as one starts earning.

Question 10

Saving $3,000 for a large,flat-screen TV within the next 6 years is an example of a short-term goal.

Accepted Answer

A) True 
 B)False

Question 11

The longer you wait to begin retirement planning,the less you are likely to have in your retirement fund.

Accepted Answer

A) True 
 B)False

Question 12

The financial planning process helps in:

Accepted Answer

A) increasing assets. 
B) increasing debts. 
C) reducing utility. 
D) reducing emergency funds. 
E) increasing financial risk. 
A) increasing assets. 
B) increasing debts. 
C) reducing utility. 
D) reducing emergency funds. 
E) increasing financial risk.

Question 13

Heads of households who have more formal education ____________. ​

Accepted Answer

A) pay more tax penalty 
B) earn more annual income 
C) can only use tax shelters 
D) plan careers for the entire family 
A) pay more tax penalty 
B) earn more annual income 
C) can only use tax shelters 
D) plan careers for the entire family

Question 14

Financial planning helps us:

Accepted Answer

A) control inflation. 
B) have flexibility to handle job loss. 
C) control unemployment rates. 
D) obtain a social security number. 
E) decrease national debt. 
A) control inflation. 
B) have flexibility to handle job loss. 
C) control unemployment rates. 
D) obtain a social security number. 
E) decrease national debt.

Question 15

A strong economy leads to:

Accepted Answer

A) a low gross domestic product. 
B) high tax evasion opportunities. 
C) high employment opportunities. 
D) low tax penalty rates. 
E) a low value of retirement account. 
A) a low gross domestic product. 
B) high tax evasion opportunities. 
C) high employment opportunities. 
D) low tax penalty rates. 
E) a low value of retirement account.

Question 16

The stage in which the economy hits a peak is called:

Accepted Answer

A) expansion. 
B) contraction. 
C) stagnation. 
D) recession. 
E) depression. 
A) expansion. 
B) contraction. 
C) stagnation. 
D) recession. 
E) depression.

Question 17

You should always spend more than what you earn.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true about setting long-term goals?

Accepted Answer

A) The goals should be very ambitious. 
B) The goals should be realistic. 
C) The objective of the goals should be to squander surplus funds. 
D) The goals should be very conservative. 
E) The goals should be set only once. 
A) The goals should be very ambitious. 
B) The goals should be realistic. 
C) The objective of the goals should be to squander surplus funds. 
D) The goals should be very conservative. 
E) The goals should be set only once.

Question 19

The consumer is:

Accepted Answer

A) a member of the business group. 
B) the central player in the financial planning environment. 
C) an important force in the government. 
D) an advocacy group that fights corruption in the government. 
E) relatively unimportant to the business or the government. 
A) a member of the business group. 
B) the central player in the financial planning environment. 
C) an important force in the government. 
D) an advocacy group that fights corruption in the government. 
E) relatively unimportant to the business or the government.

Question 20

A good financial plan is completed when one is in his or her 30s and will typically last a lifetime.

Accepted Answer

A) True 
 B)False

An individual's quality of life is closely tied to his or her:

Living costs are constant throughout the country.

The need for financial planning declines as your income increases.

Accumulating wealth for later years is called estate planning.

_____ is an important part of the conflict resolution process when there are disputes relating to money matters in families.

Fee-only financial planners charge commission for the products they sell.

The federal government delegates its regulating economic activity function to businesses and consumers.

Which of the following statements is true about businesses?

Ideally,retirement planning should begin:

Saving $3,000 for a large,flat-screen TV within the next 6 years is an example of a short-term goal.

The longer you wait to begin retirement planning,the less you are likely to have in your retirement fund.

The financial planning process helps in:

Heads of households who have more formal education ____________.

Financial planning helps us:

A strong economy leads to:

The stage in which the economy hits a peak is called:

You should always spend more than what you earn.

Which of the following is true about setting long-term goals?

The consumer is:

A good financial plan is completed when one is in his or her 30s and will typically last a lifetime.

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

An individual's quality of life is closely tied to his or her:

Living costs are constant throughout the country.

The need for financial planning declines as your income increases.

Accumulating wealth for later years is called estate planning.

_____ is an important part of the conflict resolution process when there are disputes relating to money matters in families.

Fee-only financial planners charge commission for the products they sell.

The federal government delegates its regulating economic activity function to businesses and consumers.

Which of the following statements is true about businesses?

Ideally,retirement planning should begin:

Saving $3,000 for a large,flat-screen TV within the next 6 years is an example of a short-term goal.

The longer you wait to begin retirement planning,the less you are likely to have in your retirement fund.

The financial planning process helps in:

Heads of households who have more formal education ____________. ​

Financial planning helps us:

A strong economy leads to:

The stage in which the economy hits a peak is called:

You should always spend more than what you earn.

Which of the following is true about setting long-term goals?

The consumer is:

A good financial plan is completed when one is in his or her 30s and will typically last a lifetime.

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

Heads of households who have more formal education ____________.