Question 1

Career planning:

Accepted Answer

A) does not require any goal setting. 
B) and personal financial planning are unrelated activities. 
C) does not influence an individual's lifetime earnings. 
D) impacts the inflation rate in an economy. 
E) helps in improving professional satisfaction. 
A) does not require any goal setting. 
B) and personal financial planning are unrelated activities. 
C) does not influence an individual's lifetime earnings. 
D) impacts the inflation rate in an economy. 
E) helps in improving professional satisfaction.

Question 2

Our ____________ is an important factor in determining how well we live. ​

Accepted Answer

A) income 
B) marital status 
C) credit 
D) deflation 
A) income 
B) marital status 
C) credit 
D) deflation

Question 3

Understanding the economic environment will allow you to make better _____ decisions.

Accepted Answer

A) social 
B) political 
C) technological 
D) financial 
E) legal 
A) social 
B) political 
C) technological 
D) financial 
E) legal

Question 4

____________ help in making decisions regarding retirement. ​

Accepted Answer

A) Personal financial plans 
B) Federal tax policies 
C) Government foreign policies 
D) The employer's business expansion plans 
A) Personal financial plans 
B) Federal tax policies 
C) Government foreign policies 
D) The employer's business expansion plans

Question 5

Recessions and financial crises will always result in job loss.

Accepted Answer

A) True 
 B)False

Question 6

When setting financial goals,one should typically start by setting:

Accepted Answer

A) short-term goals. 
B) intermediate goals. 
C) long-term goals. 
D) goals that are not time-bound. 
E) goals that are unrealistic. 
A) short-term goals. 
B) intermediate goals. 
C) long-term goals. 
D) goals that are not time-bound. 
E) goals that are unrealistic.

Question 7

Employee benefits may include:

Accepted Answer

A) asset purchase. 
B) estate management. 
C) investment advice. 
D) pension payments. 
E) savings planning. 
A) asset purchase. 
B) estate management. 
C) investment advice. 
D) pension payments. 
E) savings planning.

Question 8

Which of the following is one of the most emotional issues in any relationship,including that with a partner,parents,or children?

Accepted Answer

A) Utility 
B) Economic cycles 
C) Fiscal policy 
D) Money 
E) Gross domestic product 
A) Utility 
B) Economic cycles 
C) Fiscal policy 
D) Money 
E) Gross domestic product

Question 9

The average propensity to consume is commonly viewed as a key determinant of standard of living.

Accepted Answer

A) True 
 B)False

Question 10

Financial planning takes place in a dynamic economic environment created by the actions of the government,business,and consumers.

Accepted Answer

A) True 
 B)False

Question 11

Knowing what you need to accomplish _____,and how you intend to do it,gives you an edge over someone who merely reacts to monetary events as they unfold.

Accepted Answer

A) socially 
B) physically 
C) financially 
D) legally 
E) politically 
A) socially 
B) physically 
C) financially 
D) legally 
E) politically

Question 12

The last step in the financial planning process is to:

Accepted Answer

A) develop financial plans and strategies to achieve goals. 
B) use financial statements to evaluate results of plans and budgets,taking corrective action as required. 
C) implement financial plans and strategies. 
D) redefine goals and revise plans and strategies as personal circumstances change. 
E) periodically develop and implement budgets to monitor and control progress toward goals. 
A) develop financial plans and strategies to achieve goals. 
B) use financial statements to evaluate results of plans and budgets,taking corrective action as required. 
C) implement financial plans and strategies. 
D) redefine goals and revise plans and strategies as personal circumstances change. 
E) periodically develop and implement budgets to monitor and control progress toward goals.

Question 13

In addition to discussing your financial goals with your partner,you must allocate responsibility for _____ tasks and decisions.

Accepted Answer

A) skill management 
B) stress management 
C) household management 
D) money management 
E) business cycle management 
A) skill management 
B) stress management 
C) household management 
D) money management 
E) business cycle management

Question 14

The _____ environment of your country affects the interest rates you pay on your mortgage and credit cards as well as those you earn on savings accounts and bonds.

Accepted Answer

A) economic 
B) political 
C) technological 
D) social 
E) legal 
A) economic 
B) political 
C) technological 
D) social 
E) legal

Question 15

The best way to achieve your financial objectives is to ____________ ​

Accepted Answer

A) have a luxurious standard of living. 
B) spend your money at once to reach your objectives swiftly. 
C) develop a sound financial plan. 
D) create a good tax evasion strategy. 
A) have a luxurious standard of living. 
B) spend your money at once to reach your objectives swiftly. 
C) develop a sound financial plan. 
D) create a good tax evasion strategy.

Question 16

Which of the following statements is true about money and relationships?

Accepted Answer

A) It is highly likely to change a partner's financial style. 
B) One of the most important aspects of a marriage is financial compatibility. 
C) Money does not cause emotional issues in any relationship. 
D) The best way to resolve a money dispute is to avoid such a discussion. 
E) Financial planning does not help in resolving conflicts related to money. 
A) It is highly likely to change a partner's financial style. 
B) One of the most important aspects of a marriage is financial compatibility. 
C) Money does not cause emotional issues in any relationship. 
D) The best way to resolve a money dispute is to avoid such a discussion. 
E) Financial planning does not help in resolving conflicts related to money.

Question 17

Mike's annual income is $35,000,and he spends $30,800 for current needs.Mike's average propensity to consume is 80%.

Accepted Answer

A) True 
 B)False

Question 18

One trend with a profound effect on people's standard of living is the ____________,which requires greater responsibility to manage money wisely. ​

Accepted Answer

A) single-income family 
B) two-income family 
C) no-income family 
D) retirement-income family 
A) single-income family 
B) two-income family 
C) no-income family 
D) retirement-income family

Question 19

Martha is 60 and has a very high net worth.Her most pressing financial concern is probably:

Accepted Answer

A) asset acquisition planning. 
B) liability planning. 
C) estate planning. 
D) insurance planning. 
E) savings planning. 
A) asset acquisition planning. 
B) liability planning. 
C) estate planning. 
D) insurance planning. 
E) savings planning.

Question 20

Which of the following financial goals is most useful for developing a financial plan?

Accepted Answer

A) Make a $12,000 down payment on an automobile in 4 years. 
B) Retire with a comfortable lifestyle in 25 years. 
C) Buy a $125,000 house. 
D) Purchase a $40,000 boat. 
E) Join the county club on retirement in 20 years. 
A) Make a $12,000 down payment on an automobile in 4 years. 
B) Retire with a comfortable lifestyle in 25 years. 
C) Buy a $125,000 house. 
D) Purchase a $40,000 boat. 
E) Join the county club on retirement in 20 years.

Career planning:

Our ____________ is an important factor in determining how well we live.

Understanding the economic environment will allow you to make better _____ decisions.

____________ help in making decisions regarding retirement.

Recessions and financial crises will always result in job loss.

When setting financial goals,one should typically start by setting:

Employee benefits may include:

Which of the following is one of the most emotional issues in any relationship,including that with a partner,parents,or children?

The average propensity to consume is commonly viewed as a key determinant of standard of living.

Financial planning takes place in a dynamic economic environment created by the actions of the government,business,and consumers.

Knowing what you need to accomplish _____,and how you intend to do it,gives you an edge over someone who merely reacts to monetary events as they unfold.

The last step in the financial planning process is to:

In addition to discussing your financial goals with your partner,you must allocate responsibility for _____ tasks and decisions.

The _____ environment of your country affects the interest rates you pay on your mortgage and credit cards as well as those you earn on savings accounts and bonds.

The best way to achieve your financial objectives is to ____________

Which of the following statements is true about money and relationships?

Mike's annual income is $35,000,and he spends $30,800 for current needs.Mike's average propensity to consume is 80%.

One trend with a profound effect on people's standard of living is the ____________,which requires greater responsibility to manage money wisely.

Martha is 60 and has a very high net worth.Her most pressing financial concern is probably:

Which of the following financial goals is most useful for developing a financial plan?

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

Career planning:

Our ____________ is an important factor in determining how well we live. ​

Understanding the economic environment will allow you to make better _____ decisions.

____________ help in making decisions regarding retirement. ​

Recessions and financial crises will always result in job loss.

When setting financial goals,one should typically start by setting:

Employee benefits may include:

Which of the following is one of the most emotional issues in any relationship,including that with a partner,parents,or children?

The average propensity to consume is commonly viewed as a key determinant of standard of living.

Financial planning takes place in a dynamic economic environment created by the actions of the government,business,and consumers.

Knowing what you need to accomplish _____,and how you intend to do it,gives you an edge over someone who merely reacts to monetary events as they unfold.

The last step in the financial planning process is to:

In addition to discussing your financial goals with your partner,you must allocate responsibility for _____ tasks and decisions.

The _____ environment of your country affects the interest rates you pay on your mortgage and credit cards as well as those you earn on savings accounts and bonds.

The best way to achieve your financial objectives is to ____________ ​

Which of the following statements is true about money and relationships?

Mike's annual income is $35,000,and he spends $30,800 for current needs.Mike's average propensity to consume is 80%.

One trend with a profound effect on people's standard of living is the ____________,which requires greater responsibility to manage money wisely. ​

Martha is 60 and has a very high net worth.Her most pressing financial concern is probably:

Which of the following financial goals is most useful for developing a financial plan?

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

Our ____________ is an important factor in determining how well we live.

____________ help in making decisions regarding retirement.

The best way to achieve your financial objectives is to ____________

One trend with a profound effect on people's standard of living is the ____________,which requires greater responsibility to manage money wisely.