Question 1

____________ would be considered to be real property. ​

Accepted Answer

A) Stocks 
B) Land 
C) Cash 
D) Bonds 
A) Stocks 
B) Land 
C) Cash 
D) Bonds

Question 2

A decrease in the gross domestic product (GDP)would indicate that the economy is experiencing a(n)____________. ​

Accepted Answer

A) expansion 
B) contraction 
C) deflation 
D) stagflation 
A) expansion 
B) contraction 
C) deflation 
D) stagflation

Question 3

Sarah starts investing in an individual retirement account (IRA)at the age of 30 earning 10 percent for 35 years.At age 65,she will get more returns as compared to those returns if she ____________. ​

Accepted Answer

A) starts investing at the age of 25 
B) invests at 12% 
C) invests for 45 years 
D) invests up to the age of 60 
A) starts investing at the age of 25 
B) invests at 12% 
C) invests for 45 years 
D) invests up to the age of 60

Question 4

Which of the following will legitimately reduce an investor's tax liability?

Accepted Answer

A) Tax evasion 
B) Tax shelter 
C) Tax penalty 
D) Tax accounting 
E) Tax portfolio 
A) Tax evasion 
B) Tax shelter 
C) Tax penalty 
D) Tax accounting 
E) Tax portfolio

Question 5

_____ provide the roadmap for achieving monetary goals.

Accepted Answer

A) Political plans 
B) Social plans 
C) Financial plans 
D) Technological plans 
E) Legal plans 
A) Political plans 
B) Social plans 
C) Financial plans 
D) Technological plans 
E) Legal plans

Question 6

Which of the following practices will help in dealing with unexpected financial shocks?

Accepted Answer

A) Purchasing low-utility products 
B) Accumulating debt 
C) Acquiring assets with low financial value 
D) Saving money regularly for emergency funds 
E) Planning for retirement after retiring 
A) Purchasing low-utility products 
B) Accumulating debt 
C) Acquiring assets with low financial value 
D) Saving money regularly for emergency funds 
E) Planning for retirement after retiring

Question 7

The three key groups in the economic environment are:

Accepted Answer

A) government,regulation,and business. 
B) government,consultants,and business. 
C) consumers,economists,and business. 
D) consumers,business,and managers. 
E) government,consumers,and business. 
A) government,regulation,and business. 
B) government,consultants,and business. 
C) consumers,economists,and business. 
D) consumers,business,and managers. 
E) government,consumers,and business.

Question 8

Estate planning does not include taking advantage of and managing employer-sponsored benefits.

Accepted Answer

A) True 
 B)False

Question 9

_____ is something we owe,which is measured by the amount of debt we incur.

Accepted Answer

A) An asset 
B) An estate 
C) A liability 
D) Insurance 
E) A goal 
A) An asset 
B) An estate 
C) A liability 
D) Insurance 
E) A goal

Question 10

Most people tend to be more liberal about their expenditures during a recession or crisis.

Accepted Answer

A) True 
 B)False

Question 11

Salaries could vary across geographical areas because of:

Accepted Answer

A) legal costs. 
B) living costs. 
C) social costs. 
D) psychological costs. 
E) technological costs. 
A) legal costs. 
B) living costs. 
C) social costs. 
D) psychological costs. 
E) technological costs.

Question 12

Which of the following is included in employee benefits packages?

Accepted Answer

A) Estate plans 
B) Retirement plans 
C) Federal plans 
D) Personal plans 
E) Bankruptcy plans 
A) Estate plans 
B) Retirement plans 
C) Federal plans 
D) Personal plans 
E) Bankruptcy plans

Question 13

The consumer price index (CPI)is a measure of ____________. ​

Accepted Answer

A) unemployment 
B) inflation 
C) stagnation 
D) recession 
A) unemployment 
B) inflation 
C) stagnation 
D) recession

Question 14

Professional financial planners:

Accepted Answer

A) provide services on fee or commission basis. 
B) provide services to wealthy investors only. 
C) set the financial goals of retired investors. 
D) make financial decisions for investors. 
E) are most sought after during retirement years. 
A) provide services on fee or commission basis. 
B) provide services to wealthy investors only. 
C) set the financial goals of retired investors. 
D) make financial decisions for investors. 
E) are most sought after during retirement years.

Question 15

Tax plans are closely tied to investment plans.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following practices helps an individual survive in a financial crisis?

Accepted Answer

A) Spending more than his or her earnings to maintain a good lifestyle 
B) Investing regularly to make money work toward achieving financial goals 
C) Giving emergency funds the least priority while saving for the future 
D) Developing financial plans only after reaching the highest tax brackets 
E) Planning tax without considering tax shelters 
A) Spending more than his or her earnings to maintain a good lifestyle 
B) Investing regularly to make money work toward achieving financial goals 
C) Giving emergency funds the least priority while saving for the future 
D) Developing financial plans only after reaching the highest tax brackets 
E) Planning tax without considering tax shelters

Question 17

Which of the following is true about the effects of an economic recession?

Accepted Answer

A) An increase in the standard of living 
B) A decrease in unemployment 
C) An increase in the expenditure on luxury goods 
D) A decrease in the value of retirement accounts 
E) An increase in the value of insurance purchased 
A) An increase in the standard of living 
B) A decrease in unemployment 
C) An increase in the expenditure on luxury goods 
D) A decrease in the value of retirement accounts 
E) An increase in the value of insurance purchased

Question 18

People with low incomes tend to be:

Accepted Answer

A) educated. 
B) very old. 
C) childless. 
D) married. 
E) very skillful. 
A) educated. 
B) very old. 
C) childless. 
D) married. 
E) very skillful.

Question 19

Your purchase,saving,investment,and retirement plans and decisions are influenced only by the present state of the economy.

Accepted Answer

A) True 
 B)False

Question 20

Most families find it difficult to discuss ____________. ​

Accepted Answer

A) money matters 
B) economic matters 
C) social matters 
D) political matters 
A) money matters 
B) economic matters 
C) social matters 
D) political matters

____________ would be considered to be real property.

A decrease in the gross domestic product (GDP)would indicate that the economy is experiencing a(n)____________.

Sarah starts investing in an individual retirement account (IRA)at the age of 30 earning 10 percent for 35 years.At age 65,she will get more returns as compared to those returns if she ____________.

Which of the following will legitimately reduce an investor's tax liability?

_____ provide the roadmap for achieving monetary goals.

Which of the following practices will help in dealing with unexpected financial shocks?

The three key groups in the economic environment are:

Estate planning does not include taking advantage of and managing employer-sponsored benefits.

_____ is something we owe,which is measured by the amount of debt we incur.

Most people tend to be more liberal about their expenditures during a recession or crisis.

Salaries could vary across geographical areas because of:

Which of the following is included in employee benefits packages?

The consumer price index (CPI)is a measure of ____________.

Professional financial planners:

Tax plans are closely tied to investment plans.

Which of the following practices helps an individual survive in a financial crisis?

Which of the following is true about the effects of an economic recession?

People with low incomes tend to be:

Your purchase,saving,investment,and retirement plans and decisions are influenced only by the present state of the economy.

Most families find it difficult to discuss ____________.

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

____________ would be considered to be real property. ​

A decrease in the gross domestic product (GDP)would indicate that the economy is experiencing a(n)____________. ​

Sarah starts investing in an individual retirement account (IRA)at the age of 30 earning 10 percent for 35 years.At age 65,she will get more returns as compared to those returns if she ____________. ​

Which of the following will legitimately reduce an investor's tax liability?

_____ provide the roadmap for achieving monetary goals.

Which of the following practices will help in dealing with unexpected financial shocks?

The three key groups in the economic environment are:

Estate planning does not include taking advantage of and managing employer-sponsored benefits.

_____ is something we owe,which is measured by the amount of debt we incur.

Most people tend to be more liberal about their expenditures during a recession or crisis.

Salaries could vary across geographical areas because of:

Which of the following is included in employee benefits packages?

The consumer price index (CPI)is a measure of ____________. ​

Professional financial planners:

Tax plans are closely tied to investment plans.

Which of the following practices helps an individual survive in a financial crisis?

Which of the following is true about the effects of an economic recession?

People with low incomes tend to be:

Your purchase,saving,investment,and retirement plans and decisions are influenced only by the present state of the economy.

Most families find it difficult to discuss ____________. ​

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

____________ would be considered to be real property.

A decrease in the gross domestic product (GDP)would indicate that the economy is experiencing a(n)____________.

Sarah starts investing in an individual retirement account (IRA)at the age of 30 earning 10 percent for 35 years.At age 65,she will get more returns as compared to those returns if she ____________.

The consumer price index (CPI)is a measure of ____________.

Most families find it difficult to discuss ____________.