Question 1

A budget is a specific plan of how a person or family will spend their money.

Accepted Answer

A) True 
 B)False

Question 2

What types of financial records and documents should be kept in a safe deposit box?

Accepted Answer

A safe deposit box should be used to sto

Question 3

Furniture,jewelry,and an automobile are examples of liquid assets.

Accepted Answer

A) True 
 B)False

Question 4

A retirement account is an example of a ____________ asset.

Accepted Answer

A) personal 
B) common 
C) investment 
D) household 
E) budgeted 
A) personal 
B) common 
C) investment 
D) household 
E) budgeted

Question 5

A home file should be used for:

Accepted Answer

A) storing all financial documents and records. 
B) financial records for current needs. 
C) documents that require maximum security. 
D) obsolete financial documents. 
E) records that are difficult to replace. 
A) storing all financial documents and records. 
B) financial records for current needs. 
C) documents that require maximum security. 
D) obsolete financial documents. 
E) records that are difficult to replace.

Question 6

Which of the following would be considered a long-term liability?

Accepted Answer

A) Charge account payment 
B) Mortgage 
C) Six month personal loan 
D) Amount due for taxes 
E) Amount due on a credit card 
A) Charge account payment 
B) Mortgage 
C) Six month personal loan 
D) Amount due for taxes 
E) Amount due on a credit card

Question 7

Katherine Kocher has determined the following information about her own financial situation.Her checking account is worth $850 and her savings account is worth $1,200.She owns her own home that has a market value of $98,000.She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300.She has a car worth $12,500.She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $38,550.What is the value of her investment assets?

Accepted Answer

A) $2,050 
B) $98,000 
C) $27,800 
D) $44,050 
E) $171,900 
A) $2,050 
B) $98,000 
C) $27,800 
D) $44,050 
E) $171,900

Question 8

Characteristics of successful budgets include being:

Accepted Answer

A) well-planned. 
B) realistic. 
C) flexible. 
D) clearly communicated. 
E) All of these 
A) well-planned. 
B) realistic. 
C) flexible. 
D) clearly communicated. 
E) All of these

Question 9

Jamie McFarland has determined that the value of her liquid assets is $4,500,the value of her real estate is $128,000,the value of her personal possessions is $62,000,and the value of her investment assets is $73,000.She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000.What is the total value of her assets?

Accepted Answer

A) $267,500 
B) $105,500 
C) $162,000 
D) $205,500 
E) None of these 
A) $267,500 
B) $105,500 
C) $162,000 
D) $205,500 
E) None of these

Question 10

Which type of financial records includes stock and bond reports?

Accepted Answer

A) Investment 
B) Insurance 
C) Estate planning 
D) Tax 
E) Consumer purchase 
A) Investment 
B) Insurance 
C) Estate planning 
D) Tax 
E) Consumer purchase

Question 11

Payments that do not vary from month to month are ____________ expenses.

Accepted Answer

A) fixed 
B) usage 
C) variable 
D) luxury 
E) output 
A) fixed 
B) usage 
C) variable 
D) luxury 
E) output

Question 12

Which of the following payments would be considered a variable expense?

Accepted Answer

A) Rent 
B) Installment loan payment 
C) Mortgage payment 
D) Monthly train ticket for commuting to work 
E) Electricity bill 
A) Rent 
B) Installment loan payment 
C) Mortgage payment 
D) Monthly train ticket for commuting to work 
E) Electricity bill

Question 13

In order to determine net worth,you would create what kind of report?

Accepted Answer

A) Written budget 
B) Balance sheet 
C) Cash flow statement 
D) SWOT analysis 
E) Physical budget 
A) Written budget 
B) Balance sheet 
C) Cash flow statement 
D) SWOT analysis 
E) Physical budget

Question 14

Allen Arnold has determined that the amount of money he spends on his mortgage payment,car loan payment,and home insurance payment totals $1,200 each month.What type of expenses has Allen determined with this calculation?

Accepted Answer

A) Current liabilities 
B) Long term liabilities 
C) Net worth 
D) Variable expenses 
E) Fixed expenses 
A) Current liabilities 
B) Long term liabilities 
C) Net worth 
D) Variable expenses 
E) Fixed expenses

Question 15

Which of the following can be minimized through budgeting?

Accepted Answer

A) Overusing credit 
B) Lacking a regular savings program 
C) Failing to ensure future financial security 
D) All of these 
E) None of these 
A) Overusing credit 
B) Lacking a regular savings program 
C) Failing to ensure future financial security 
D) All of these 
E) None of these

Question 16

Financial payments that do not vary each month are referred to as:

Accepted Answer

A) fixed expenses. 
B) variable expenses. 
C) cash flow. 
D) insolvency. 
E) budget variance. 
A) fixed expenses. 
B) variable expenses. 
C) cash flow. 
D) insolvency. 
E) budget variance.

Question 17

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

Accepted Answer

A) $11,000 
B) $156,000 
C) $167,000 
D) $323,000 
E) $452,000 
A) $11,000 
B) $156,000 
C) $167,000 
D) $323,000 
E) $452,000

Question 18

List the four phases of budgeting and describe the details of each phase.

Accepted Answer

Phase 1: Assess Your Current Situation.

Question 19

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

Accepted Answer

A) 0.5 
B) 5.0 
C) 6.0 
D) 10.0 
E) 11.0 
A) 0.5 
B) 5.0 
C) 6.0 
D) 10.0 
E) 11.0

Question 20

Which of the following is typically considered to be a personal financial record?

Accepted Answer

A) Birth certificate 
B) Marriage license 
C) Certificate of deposit 
D) Social Security card 
E) All of these 
A) Birth certificate 
B) Marriage license 
C) Certificate of deposit 
D) Social Security card 
E) All of these

A budget is a specific plan of how a person or family will spend their money.

What types of financial records and documents should be kept in a safe deposit box?

Furniture,jewelry,and an automobile are examples of liquid assets.

A retirement account is an example of a ____________ asset.

A home file should be used for:

Which of the following would be considered a long-term liability?

Characteristics of successful budgets include being:

Which type of financial records includes stock and bond reports?

Payments that do not vary from month to month are ____________ expenses.

Which of the following payments would be considered a variable expense?

In order to determine net worth,you would create what kind of report?

Allen Arnold has determined that the amount of money he spends on his mortgage payment,car loan payment,and home insurance payment totals $1,200 each month.What type of expenses has Allen determined with this calculation?

Which of the following can be minimized through budgeting?

Financial payments that do not vary each month are referred to as:

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

List the four phases of budgeting and describe the details of each phase.

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

Which of the following is typically considered to be a personal financial record?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 3: Money Management Strategy: Financial Statements and Budgeting

A budget is a specific plan of how a person or family will spend their money.

What types of financial records and documents should be kept in a safe deposit box?

Furniture,jewelry,and an automobile are examples of liquid assets.

A retirement account is an example of a ____________ asset.

A home file should be used for:

Which of the following would be considered a long-term liability?

Characteristics of successful budgets include being:

Which type of financial records includes stock and bond reports?

Payments that do not vary from month to month are ____________ expenses.

Which of the following payments would be considered a variable expense?

In order to determine net worth,you would create what kind of report?

Allen Arnold has determined that the amount of money he spends on his mortgage payment,car loan payment,and home insurance payment totals $1,200 each month.What type of expenses has Allen determined with this calculation?

Which of the following can be minimized through budgeting?

Financial payments that do not vary each month are referred to as:

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

List the four phases of budgeting and describe the details of each phase.

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

Which of the following is typically considered to be a personal financial record?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters