Question 1

A person's ____________ leads to increase in income potential in his or her career. ​

Accepted Answer

A) formal education 
B) social status 
C) marital status 
D) corporate loyalty 
A) formal education 
B) social status 
C) marital status 
D) corporate loyalty

Question 2

Managing health and disability insurance is an important part of:

Accepted Answer

A) asset acquisition planning. 
B) tax planning. 
C) retirement planning. 
D) estate planning. 
E) employee benefit planning. 
A) asset acquisition planning. 
B) tax planning. 
C) retirement planning. 
D) estate planning. 
E) employee benefit planning.

Question 3

Career plans should be fixed once the long-term and short-term career goals are set.

Accepted Answer

A) True 
 B)False

Question 4

Tangible assets are earning assets that are held for the returns they promise.

Accepted Answer

A) True 
 B)False

Question 5

An individual's salary will be lower if he or she lives in a(n)____________ area. ​

Accepted Answer

A) metropolitan 
B) overpopulated 
C) industrial 
D) rural 
A) metropolitan 
B) overpopulated 
C) industrial 
D) rural

Question 6

It is not good to discuss your financial goals and attitudes toward money with your partner.

Accepted Answer

A) True 
 B)False

Question 7

An economy experiences _____ after a peak.

Accepted Answer

A) a convolution 
B) an expansion 
C) a contraction 
D) recovery 
E) prosperity 
A) a convolution 
B) an expansion 
C) a contraction 
D) recovery 
E) prosperity

Question 8

Tax planning is most common among individuals with ____________. ​

Accepted Answer

A) low income 
B) high income 
C) no income 
D) erratic income 
A) low income 
B) high income 
C) no income 
D) erratic income

Question 9

Which of the following statements is true about Andy if the inflation rate is increasing every year by 1 percent and there is no growth in her salary?

Accepted Answer

A) Andy's gross domestic product will increase. 
B) Andy's purchasing power will decrease. 
C) Andy's employment opportunities will increase. 
D) The annual growth in Andy's salary will be equal to the average inflation rate. 
E) Andy's cost of borrowing will be less than 5 percent. 
A) Andy's gross domestic product will increase. 
B) Andy's purchasing power will decrease. 
C) Andy's employment opportunities will increase. 
D) The annual growth in Andy's salary will be equal to the average inflation rate. 
E) Andy's cost of borrowing will be less than 5 percent.

Question 10

Estate planning involves:

Accepted Answer

A) considering how your wealth can be most effectively passed on to your heirs. 
B) payment of all back taxes to ensure minimum tax liability. 
C) the dissolution of all privately held corporations by filing bankruptcy under Chapter 13. 
D) the valuation and auctioning of your valuables by hiring a professional tax planner. 
E) planning for retirement and obtaining medical insurance. 
A) considering how your wealth can be most effectively passed on to your heirs. 
B) payment of all back taxes to ensure minimum tax liability. 
C) the dissolution of all privately held corporations by filing bankruptcy under Chapter 13. 
D) the valuation and auctioning of your valuables by hiring a professional tax planner. 
E) planning for retirement and obtaining medical insurance.

Question 11

For employees of large firms,managing employee benefits is an important part of financial planning.

Accepted Answer

A) True 
 B)False

Question 12

Personal financial planning is important because it:

Accepted Answer

A) controls inflation. 
B) limits consumption. 
C) reduces social disparity. 
D) results in an improved standard of living. 
E) reduces economic differences among individuals. 
A) controls inflation. 
B) limits consumption. 
C) reduces social disparity. 
D) results in an improved standard of living. 
E) reduces economic differences among individuals.

Question 13

Tax planning is most commonly done to:

Accepted Answer

A) determine the tax penalty. 
B) evade taxes. 
C) minimize taxes. 
D) pay extra taxes. 
E) learn the tax code. 
A) determine the tax penalty. 
B) evade taxes. 
C) minimize taxes. 
D) pay extra taxes. 
E) learn the tax code.

Question 14

The financial crisis of 2008 and 2009 is best characterized as a _____.

Accepted Answer

A) recession 
B) depression 
C) hyperdeflation 
D) business peak 
E) bubble 
A) recession 
B) depression 
C) hyperdeflation 
D) business peak 
E) bubble

Question 15

The most effective way to achieve financial objectives is through personal financial planning.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a reason for a decrease in the average propensity to consume with an increase in income?

Accepted Answer

A) The amount of savings decreases,and the consumption of necessities increases. 
B) The expenditure on luxury goods increases,and the amount of savings decreases. 
C) The expenditure on luxury goods represents only a small portion of income. 
D) The amount of savings represents only a small portion of income. 
E) The cost of necessities represents only a small portion of income. 
A) The amount of savings decreases,and the consumption of necessities increases. 
B) The expenditure on luxury goods increases,and the amount of savings decreases. 
C) The expenditure on luxury goods represents only a small portion of income. 
D) The amount of savings represents only a small portion of income. 
E) The cost of necessities represents only a small portion of income.

Question 17

The best way to resolve money disputes is to:

Accepted Answer

A) never discuss money matters with family and ensure that only one person in the family makes financial decisions. 
B) communicate consistently about money matters with family and be willing to compromise. 
C) make financial decisions independently and ensure that individuals do not interfere in other family members' financial matters. 
D) adopt a third party's opinion,who is not a part of the family,to set financial goals. 
E) always handle the money disputes of the family according to the local state law. 
A) never discuss money matters with family and ensure that only one person in the family makes financial decisions. 
B) communicate consistently about money matters with family and be willing to compromise. 
C) make financial decisions independently and ensure that individuals do not interfere in other family members' financial matters. 
D) adopt a third party's opinion,who is not a part of the family,to set financial goals. 
E) always handle the money disputes of the family according to the local state law.

Question 18

Regardless of income or wealth,setting aside some portion of current income regularly for future use increases the amount of ____________. ​

Accepted Answer

A) income saved 
B) tax-exempt income 
C) deferred tax 
D) employer-sponsored benefits 
A) income saved 
B) tax-exempt income 
C) deferred tax 
D) employer-sponsored benefits

Question 19

In ____________,the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her. ​

Accepted Answer

A) cafeteria plans 
B) fixed-benefit plans 
C) estate plans 
D) profit-sharing plans 
A) cafeteria plans 
B) fixed-benefit plans 
C) estate plans 
D) profit-sharing plans

Question 20

The purchase of a car is an example of ____________. ​

Accepted Answer

A) current consumption 
B) social conservation 
C) deferred tax 
D) economic contraction 
A) current consumption 
B) social conservation 
C) deferred tax 
D) economic contraction

A person's ____________ leads to increase in income potential in his or her career.

Managing health and disability insurance is an important part of:

Career plans should be fixed once the long-term and short-term career goals are set.

Tangible assets are earning assets that are held for the returns they promise.

An individual's salary will be lower if he or she lives in a(n)____________ area.

It is not good to discuss your financial goals and attitudes toward money with your partner.

An economy experiences _____ after a peak.

Tax planning is most common among individuals with ____________.

Which of the following statements is true about Andy if the inflation rate is increasing every year by 1 percent and there is no growth in her salary?

Estate planning involves:

For employees of large firms,managing employee benefits is an important part of financial planning.

Personal financial planning is important because it:

Tax planning is most commonly done to:

The financial crisis of 2008 and 2009 is best characterized as a _____.

The most effective way to achieve financial objectives is through personal financial planning.

Which of the following is a reason for a decrease in the average propensity to consume with an increase in income?

The best way to resolve money disputes is to:

Regardless of income or wealth,setting aside some portion of current income regularly for future use increases the amount of ____________.

In ____________,the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

The purchase of a car is an example of ____________.

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

A person's ____________ leads to increase in income potential in his or her career. ​

Managing health and disability insurance is an important part of:

Career plans should be fixed once the long-term and short-term career goals are set.

Tangible assets are earning assets that are held for the returns they promise.

An individual's salary will be lower if he or she lives in a(n)____________ area. ​

It is not good to discuss your financial goals and attitudes toward money with your partner.

An economy experiences _____ after a peak.

Tax planning is most common among individuals with ____________. ​

Which of the following statements is true about Andy if the inflation rate is increasing every year by 1 percent and there is no growth in her salary?

Estate planning involves:

For employees of large firms,managing employee benefits is an important part of financial planning.

Personal financial planning is important because it:

Tax planning is most commonly done to:

The financial crisis of 2008 and 2009 is best characterized as a _____.

The most effective way to achieve financial objectives is through personal financial planning.

Which of the following is a reason for a decrease in the average propensity to consume with an increase in income?

The best way to resolve money disputes is to:

Regardless of income or wealth,setting aside some portion of current income regularly for future use increases the amount of ____________. ​

In ____________,the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her. ​

The purchase of a car is an example of ____________. ​

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

A person's ____________ leads to increase in income potential in his or her career.

An individual's salary will be lower if he or she lives in a(n)____________ area.

Tax planning is most common among individuals with ____________.

Regardless of income or wealth,setting aside some portion of current income regularly for future use increases the amount of ____________.

In ____________,the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

The purchase of a car is an example of ____________.