Question 1

The financial activities for a young single will probably be the same as those for an older couple with no dependent children at home.

Accepted Answer

A) True 
 B)False

Question 2

Paul Jacoby wants to deposit money today for a vacation that he plans to take to Asia after he graduates from Graduate School.Which formula should he use to determine the amount of money he will have available for his vacation?

Accepted Answer

A)  Present value of a single amount 
B)  Future value of a single amount 
C)  Simple interest 
D)  Present value of an annuity 
E)  Future value of an annuity 
A)  Present value of a single amount 
B)  Future value of a single amount 
C)  Simple interest 
D)  Present value of an annuity 
E)  Future value of an annuity

Question 3

The Rule of 72 is:

Accepted Answer

A)  A tool to determine the number of years until retirement for an employee 
B)  Used to estimate how long it takes for prices to double using a given annual inflation rate 
C)  The legal code for requiring companies to provide a match on retirement savings 
D)  Used to calculate interest rates for savings 
E)  The number of steps required to complete a financial plan 
A)  A tool to determine the number of years until retirement for an employee 
B)  Used to estimate how long it takes for prices to double using a given annual inflation rate 
C)  The legal code for requiring companies to provide a match on retirement savings 
D)  Used to calculate interest rates for savings 
E)  The number of steps required to complete a financial plan

Question 4

Purchasing a car is an example of a durable-product goal.

Accepted Answer

A) True 
 B)False

Question 5

Hope Appleton is trying to decide whether to keep her money in a savings account or in a mutual fund.What would you tell her to help her analyze her decision?

Accepted Answer

Students answers will vary.Suggested res

Question 6

The goal of purchasing a long-term care insurance policy would be most appropriate for

Accepted Answer

A)  A young couple without children. 
B)  A single mother with a preschool daughter. 
C)  A recent college graduate. 
D)  A single adult nearing retirement age. 
E)  An extremely wealthy executive. 
A)  A young couple without children. 
B)  A single mother with a preschool daughter. 
C)  A recent college graduate. 
D)  A single adult nearing retirement age. 
E)  An extremely wealthy executive.

Question 7

How do the main activities of personal financial planning fit together?

Accepted Answer

The main components of personal financia

Question 8

The potential for difficulty to convert an investment to cash is referred to as ____________ risk.

Accepted Answer

A)  interest-rate 
B)  inflation 
C)  income 
D)  personal 
E)  liquidity 
A)  interest-rate 
B)  inflation 
C)  income 
D)  personal 
E)  liquidity

Question 9

What are the guidelines one can use to set effective financial goals?

Accepted Answer

Each goal should take a SMART

Question 10

Intermediate goals are usually achieved within the next year or so.

Accepted Answer

A) True 
 B)False

Question 11

If I can invest a dollar today and earn interest on it,then it should be worth _________ in the future.

Accepted Answer

A)  Less 
B)  The same as 
C)  More 
D)  Either less or the same as 
E)  Either the same as or more 
A)  Less 
B)  The same as 
C)  More 
D)  Either less or the same as 
E)  Either the same as or more

Question 12

If Patty Shoemaker estimates that her $100 weekly grocery bill will increase at an annual inflation rate of 4%,what should her weekly grocery bill be in 3 years?

Accepted Answer

A)  $30.00 
B)  $40.00 
C)  $112.50 
D)  $112.60 
E)  $121.60 
A)  $30.00 
B)  $40.00 
C)  $112.50 
D)  $112.60 
E)  $121.60

Question 13

The step in the personal financial planning process that follows "Create and implement your financial action plan" is

Accepted Answer

A)  Review and revise your financial plan 
B)  Identify alternative courses of action 
C)  Determine your current financial situation 
D)  Evaluate your alternatives 
E)  Develop your financial goals 
A)  Review and revise your financial plan 
B)  Identify alternative courses of action 
C)  Determine your current financial situation 
D)  Evaluate your alternatives 
E)  Develop your financial goals

Question 14

An investor should expect to receive a risk premium for

Accepted Answer

A)  Expanded exports 
B)  Lower consumer prices 
C)  Higher uncertainty about getting his/her money back 
D)  Reduced availability of investments 
E)  Expected lower inflation 
A)  Expanded exports 
B)  Lower consumer prices 
C)  Higher uncertainty about getting his/her money back 
D)  Reduced availability of investments 
E)  Expected lower inflation

Question 15

The tangible and intangible factors that create a less than desirable situation is referred to as ____________ risk.

Accepted Answer

A)  interest-rate 
B)  inflation 
C)  income 
D)  liquidity 
E)  personal 
A)  interest-rate 
B)  inflation 
C)  income 
D)  liquidity 
E)  personal

Question 16

Risks associated with most financial decisions are easy to measure.

Accepted Answer

A) True 
 B)False

Question 17

The actual cost of living increase for a household will be:

Accepted Answer

A)  Greater than the inflation rate as reported by the CPI since the index excludes the product or service with the highest inflation rate for the past 12 months 
B)  Lower than the inflation rate as reported by the CPI since the index excludes the product or service with the lowest inflation rate for the past 12 months 
C)  Equal to the inflation rate as reported by the CPI since it includes all products and services whether or not the prices have changed in the past 12 months 
D)  Either greater than or less than the inflation rate as reported by the CPI depending on the household's cost of necessities purchased 
E)  Zero since the CPI does not measure consumer price changes 
A)  Greater than the inflation rate as reported by the CPI since the index excludes the product or service with the highest inflation rate for the past 12 months 
B)  Lower than the inflation rate as reported by the CPI since the index excludes the product or service with the lowest inflation rate for the past 12 months 
C)  Equal to the inflation rate as reported by the CPI since it includes all products and services whether or not the prices have changed in the past 12 months 
D)  Either greater than or less than the inflation rate as reported by the CPI depending on the household's cost of necessities purchased 
E)  Zero since the CPI does not measure consumer price changes

Question 18

When prices are increasing at a rate of 6 percent,the cost of products would double in about 12 years.

Accepted Answer

A) True 
 B)False

Question 19

A question associated with the saving component of financial planning is:

Accepted Answer

A)  Do you have an adequate emergency fund? 
B)  Is your will current? 
C)  Is your investment program appropriate to your income and tax situation? 
D)  Do you have a realistic budget for your current financial situation? 
E)  Are your transportation expenses minimized through careful planning? 
A)  Do you have an adequate emergency fund? 
B)  Is your will current? 
C)  Is your investment program appropriate to your income and tax situation? 
D)  Do you have a realistic budget for your current financial situation? 
E)  Are your transportation expenses minimized through careful planning?

Question 20

What are the main activities of personal financial planning?

Accepted Answer

The main components of persona

The financial activities for a young single will probably be the same as those for an older couple with no dependent children at home.

Paul Jacoby wants to deposit money today for a vacation that he plans to take to Asia after he graduates from Graduate School.Which formula should he use to determine the amount of money he will have available for his vacation?

The Rule of 72 is:

Purchasing a car is an example of a durable-product goal.

Hope Appleton is trying to decide whether to keep her money in a savings account or in a mutual fund.What would you tell her to help her analyze her decision?

The goal of purchasing a long-term care insurance policy would be most appropriate for

How do the main activities of personal financial planning fit together?

The potential for difficulty to convert an investment to cash is referred to as ____________ risk.

What are the guidelines one can use to set effective financial goals?

Intermediate goals are usually achieved within the next year or so.

If I can invest a dollar today and earn interest on it,then it should be worth _________ in the future.

If Patty Shoemaker estimates that her $100 weekly grocery bill will increase at an annual inflation rate of 4%,what should her weekly grocery bill be in 3 years?

The step in the personal financial planning process that follows "Create and implement your financial action plan" is

An investor should expect to receive a risk premium for

The tangible and intangible factors that create a less than desirable situation is referred to as ____________ risk.

Risks associated with most financial decisions are easy to measure.

The actual cost of living increase for a household will be:

When prices are increasing at a rate of 6 percent,the cost of products would double in about 12 years.

A question associated with the saving component of financial planning is:

What are the main activities of personal financial planning?

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters

Exam 1: Personal Financial Planning in Action

The financial activities for a young single will probably be the same as those for an older couple with no dependent children at home.

Paul Jacoby wants to deposit money today for a vacation that he plans to take to Asia after he graduates from Graduate School.Which formula should he use to determine the amount of money he will have available for his vacation?

The Rule of 72 is:

Purchasing a car is an example of a durable-product goal.

Hope Appleton is trying to decide whether to keep her money in a savings account or in a mutual fund.What would you tell her to help her analyze her decision?

The goal of purchasing a long-term care insurance policy would be most appropriate for

How do the main activities of personal financial planning fit together?

The potential for difficulty to convert an investment to cash is referred to as ____________ risk.

What are the guidelines one can use to set effective financial goals?

Intermediate goals are usually achieved within the next year or so.

If I can invest a dollar today and earn interest on it,then it should be worth _________ in the future.

If Patty Shoemaker estimates that her $100 weekly grocery bill will increase at an annual inflation rate of 4%,what should her weekly grocery bill be in 3 years?

The step in the personal financial planning process that follows "Create and implement your financial action plan" is

An investor should expect to receive a risk premium for

The tangible and intangible factors that create a less than desirable situation is referred to as ____________ risk.

Risks associated with most financial decisions are easy to measure.

The actual cost of living increase for a household will be:

When prices are increasing at a rate of 6 percent,the cost of products would double in about 12 years.

A question associated with the saving component of financial planning is:

What are the main activities of personal financial planning?

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters