Question 1

The study of how wealth is created and distributed is:

Accepted Answer

A) financial planning. 
B) opportunity cost. 
C) inflation. 
D) economics. 
E) a market economy. 
A) financial planning. 
B) opportunity cost. 
C) inflation. 
D) economics. 
E) a market economy.

Question 2

The future value of $1,000 deposited a year for 5 years earning 4 percent would be approximately

Accepted Answer

A) $5,000 
B) $5,250 
C) $5,400 
D) $6,500 
E) $8,200 
A) $5,000 
B) $5,250 
C) $5,400 
D) $6,500 
E) $8,200

Question 3

The stages that an individual goes through based on age,financial needs,and family situation is called the:

Accepted Answer

A) financial planning process. 
B) budgeting procedure. 
C) personal economic cycle. 
D) adult life cycle. 
E) tax planning process. 
A) financial planning process. 
B) budgeting procedure. 
C) personal economic cycle. 
D) adult life cycle. 
E) tax planning process.

Question 4

Higher inflation usually results in lower interest rates.

Accepted Answer

A) True 
 B)False

Question 5

You are planning to buy a house in five years.How much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Accepted Answer

A) $6,000 
B) $6,590 
C) $7,470 
D) $9,400 
E) $10,000 
A) $6,000 
B) $6,590 
C) $7,470 
D) $9,400 
E) $10,000

Question 6

Describe the S-M-A-R-T approach to financial planning goal setting.Give an example.

Accepted Answer

The answer of Describe the S-M-A-R-T approach to financial planning...

Question 7

Melanie Walsh likes to go to the movies once a week.When she is at the movies,she generally gets large popcorn and a drink.Melanie wants to be sure that she sets aside money each week so she can continue going to the movies.What type of goal would this be for Melanie?

Accepted Answer

A) Consumable-products goal 
B) Durable-products goal 
C) Intangible goal 
D) Intermediate goal 
E) Long term goal 
A) Consumable-products goal 
B) Durable-products goal 
C) Intangible goal 
D) Intermediate goal 
E) Long term goal

Question 8

Which of the following would increase the risk of a loan?

Accepted Answer

A) rising consumer prices 
B) a short time to maturity 
C) lower consumer prices 
D) constant interest rates 
E) a good credit rating 
A) rising consumer prices 
B) a short time to maturity 
C) lower consumer prices 
D) constant interest rates 
E) a good credit rating

Question 9

Lenders benefit more than borrowers in times of high inflation.

Accepted Answer

A) True 
 B)False

Question 10

A decrease in the demand for a product or service may result in a decrease in wages for people producing that item.

Accepted Answer

A) True 
 B)False

Question 11

Financial planning has specific techniques that will be effective for every individual and household.

Accepted Answer

A) True 
 B)False

Question 12

Increased demand for a product or service will usually result in lower prices for the item.

Accepted Answer

A) True 
 B)False

Question 13

Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

Accepted Answer

A) measurable terms. 
B) a realistic perspective. 
C) specific terms. 
D) the type of action to be taken. 
E) a time framE. 
A) measurable terms. 
B) a realistic perspective. 
C) specific terms. 
D) the type of action to be taken. 
E) a time framE.

Question 14

The risk premium you receive as a saver is based in part on:

Accepted Answer

A) your credit rating. 
B) the amount of money you are borrowing. 
C) the uncertainty associated with getting your money back. 
D) the expected rate of inflation. 
E) C & D abovE. 
A) your credit rating. 
B) the amount of money you are borrowing. 
C) the uncertainty associated with getting your money back. 
D) the expected rate of inflation. 
E) C & D abovE.

Question 15

During __________,even though prices decline spending slows because consumers expect prices to continue to decline.

Accepted Answer

A) deflation 
B) depreciation 
C) appreciation 
D) economic recovery 
E) inflation 
A) deflation 
B) depreciation 
C) appreciation 
D) economic recovery 
E) inflation

Question 16

The uncertainty associated with decision making is referred to as:

Accepted Answer

A) opportunity cost. 
B) selection of alternatives. 
C) financial goals. 
D) personal values. 
E) risk. 
A) opportunity cost. 
B) selection of alternatives. 
C) financial goals. 
D) personal values. 
E) risk.

Question 17

The main responsibility of The Fed is to:

Accepted Answer

A) maintain an adequate supply of money. 
B) approve spending by Congress. 
C) set federal income tax rates. 
D) determine illegal business activities. 
E) maintain a balanced budget for the federal government. 
A) maintain an adequate supply of money. 
B) approve spending by Congress. 
C) set federal income tax rates. 
D) determine illegal business activities. 
E) maintain a balanced budget for the federal government.

Question 18

The Fed refers to:

Accepted Answer

A) government regulation of business. 
B) Congress. 
C) the Federal Reserve System. 
D) the Federal Deposit Insurance Corporation. 
E) spending by the federal government. 
A) government regulation of business. 
B) Congress. 
C) the Federal Reserve System. 
D) the Federal Deposit Insurance Corporation. 
E) spending by the federal government.

Question 19

Attempts to increase income are part of the ____________ component of financial planning.

Accepted Answer

A) planning 
B) obtaining 
C) saving 
D) sharing 
E) protecting 
A) planning 
B) obtaining 
C) saving 
D) sharing 
E) protecting

Question 20

Increased consumer spending will usually cause:

Accepted Answer

A) lower consumer prices. 
B) reduced employment levels. 
C) lower tax revenues. 
D) lower interest rates. 
E) higher employment levels. 
A) lower consumer prices. 
B) reduced employment levels. 
C) lower tax revenues. 
D) lower interest rates. 
E) higher employment levels.

The study of how wealth is created and distributed is:

The future value of $1,000 deposited a year for 5 years earning 4 percent would be approximately

The stages that an individual goes through based on age,financial needs,and family situation is called the:

Higher inflation usually results in lower interest rates.

You are planning to buy a house in five years.How much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Describe the S-M-A-R-T approach to financial planning goal setting.Give an example.

Melanie Walsh likes to go to the movies once a week.When she is at the movies,she generally gets large popcorn and a drink.Melanie wants to be sure that she sets aside money each week so she can continue going to the movies.What type of goal would this be for Melanie?

Which of the following would increase the risk of a loan?

Lenders benefit more than borrowers in times of high inflation.

A decrease in the demand for a product or service may result in a decrease in wages for people producing that item.

Financial planning has specific techniques that will be effective for every individual and household.

Increased demand for a product or service will usually result in lower prices for the item.

Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

The risk premium you receive as a saver is based in part on:

During __________,even though prices decline spending slows because consumers expect prices to continue to decline.

The uncertainty associated with decision making is referred to as:

The main responsibility of The Fed is to:

The Fed refers to:

Attempts to increase income are part of the ____________ component of financial planning.

Increased consumer spending will usually cause:

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 1: Personal Finance Basics and the Time Value of Money

The study of how wealth is created and distributed is:

The future value of $1,000 deposited a year for 5 years earning 4 percent would be approximately

The stages that an individual goes through based on age,financial needs,and family situation is called the:

Higher inflation usually results in lower interest rates.

You are planning to buy a house in five years.How much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Describe the S-M-A-R-T approach to financial planning goal setting.Give an example.

Melanie Walsh likes to go to the movies once a week.When she is at the movies,she generally gets large popcorn and a drink.Melanie wants to be sure that she sets aside money each week so she can continue going to the movies.What type of goal would this be for Melanie?

Which of the following would increase the risk of a loan?

Lenders benefit more than borrowers in times of high inflation.

A decrease in the demand for a product or service may result in a decrease in wages for people producing that item.

Financial planning has specific techniques that will be effective for every individual and household.

Increased demand for a product or service will usually result in lower prices for the item.

Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

The risk premium you receive as a saver is based in part on:

During __________,even though prices decline spending slows because consumers expect prices to continue to decline.

The uncertainty associated with decision making is referred to as:

The main responsibility of The Fed is to:

The Fed refers to:

Attempts to increase income are part of the ____________ component of financial planning.

Increased consumer spending will usually cause:

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters