Question 1

Higher consumer prices are likely to be accompanied by:

Accepted Answer

A)  lower union wages. 
B)  lower interest rates. 
C)  lower production costs. 
D)  higher interest rates. 
E)  higher exports. 
A)  lower union wages. 
B)  lower interest rates. 
C)  lower production costs. 
D)  higher interest rates. 
E)  higher exports.

Question 2

Reduced funds available for investment in our economy could result from

Accepted Answer

A)  expanded savings by consumers. 
B)  higher imports than exports. 
C)  reduced spending for consumer goods. 
D)  higher exports than imports. 
E)  higher opportunity costs. 
A)  expanded savings by consumers. 
B)  higher imports than exports. 
C)  reduced spending for consumer goods. 
D)  higher exports than imports. 
E)  higher opportunity costs.

Question 3

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 4

Your goal is to pay down your student loan in 3 years. The balance today is $9,434. If you are charged a rate of 9%, compounded monthly, what will be your monthly, end-of-period payment?

Accepted Answer

A)  $527 
B)  $406 
C)  $300 
D)  $262 
E)  $193 
A)  $527 
B)  $406 
C)  $300 
D)  $262 
E)  $193

Question 5

A higher opportunity cost implies a lower current value.

Accepted Answer

A) True 
 B)False

Question 6

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

Hope should consider the risk and opport

Question 7

The major function of a financial plan is to:

Accepted Answer

A)  reduce taxes. 
B)  increase savings. 
C)  achieve financial goals. 
D)  improve your credit rating. 
E)  obtain adequate insurance protection. 
A)  reduce taxes. 
B)  increase savings. 
C)  achieve financial goals. 
D)  improve your credit rating. 
E)  obtain adequate insurance protection.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Inflation reduces the buying power of money.

Accepted Answer

A) True 
 B)False

Question 10

Increased consumer spending will usually cause:

Accepted Answer

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

Question 11

Briefly explain three types of financial and economic risks that tend to affect everyone.

Accepted Answer

Interest rate risk: Changing interest ra

Question 12

Higher prices are likely to result from:

Accepted Answer

A)  increased spending by consumers. 
B)  increased production by business. 
C)  lower interest rates. 
D)  lower demand by consumers 
E)  an increase in the supply of a product. 
A)  increased spending by consumers. 
B)  increased production by business. 
C)  lower interest rates. 
D)  lower demand by consumers 
E)  an increase in the supply of a product.

Question 13

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

Accepted Answer

A)  financial goals 
B)  saving 
C)  planning 
D)  restructuring debt 
E)  liquidity 
A)  financial goals 
B)  saving 
C)  planning 
D)  restructuring debt 
E)  liquidity

Question 14

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

Accepted Answer

A)  Is your will current? 
B)  Do you have an adequate emergency fund? 
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)  Is your will current? 
B)  Do you have an adequate emergency fund? 
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 15

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 16

Future value calculations consider:

Accepted Answer

A)  compounding. 
B)  add-on interest. 
C)  discounting 
D)  simple interest. 
E)  an annuity. 
A)  compounding. 
B)  add-on interest. 
C)  discounting 
D)  simple interest. 
E)  an annuity.

Question 17

Higher inflation usually results in lower interest rates.

Accepted Answer

A) True 
 B)False

Question 18

The time value of money refers to:

Accepted Answer

A)  personal opportunity costs such as time lost on an activity. 
B)  financial decisions that require borrowing funds from a financial institution. 
C)  changes in interest rates due to changes in the supply and demand for money in our economy. 
D)  increases in an amount of money as a result of interest. 
E)  changing demographic trends in our society. 
A)  personal opportunity costs such as time lost on an activity. 
B)  financial decisions that require borrowing funds from a financial institution. 
C)  changes in interest rates due to changes in the supply and demand for money in our economy. 
D)  increases in an amount of money as a result of interest. 
E)  changing demographic trends in our society.

Question 19

What types of economic conditions are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Accepted Answer

Common risks are inflation, changing int

Question 20

Liquidity is the ability to convert financial resources into usable cash with ease.

Accepted Answer

A) True 
 B)False

Higher consumer prices are likely to be accompanied by:

Reduced funds available for investment in our economy could result from

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

Your goal is to pay down your student loan in 3 years. The balance today is $9,434. If you are charged a rate of 9%, compounded monthly, what will be your monthly, end-of-period payment?

A higher opportunity cost implies a lower current value.

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 major function of a financial plan is to:

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

Inflation reduces the buying power of money.

Increased consumer spending will usually cause:

Briefly explain three types of financial and economic risks that tend to affect everyone.

Higher prices are likely to result from:

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

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

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

Future value calculations consider:

Higher inflation usually results in lower interest rates.

The time value of money refers to:

What types of economic conditions are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Liquidity is the ability to convert financial resources into usable cash with ease.

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 1: Personal Financial Planning: An Introduction

Higher consumer prices are likely to be accompanied by:

Reduced funds available for investment in our economy could result from

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

Your goal is to pay down your student loan in 3 years. The balance today is $9,434. If you are charged a rate of 9%, compounded monthly, what will be your monthly, end-of-period payment?

A higher opportunity cost implies a lower current value.

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 major function of a financial plan is to:

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

Inflation reduces the buying power of money.

Increased consumer spending will usually cause:

Briefly explain three types of financial and economic risks that tend to affect everyone.

Higher prices are likely to result from:

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

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

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

Future value calculations consider:

Higher inflation usually results in lower interest rates.

The time value of money refers to:

What types of economic conditions are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Liquidity is the ability to convert financial resources into usable cash with ease.

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters