Question 1

Personal opportunity costs refer to resources, such as time, health, and energy, that are given up when a choice is made.

Accepted Answer

A) True 
 B)False

Question 2

Steve Wilson wants to deposit $150 per month into an account earning 4 percent for the next 3 years, so he can purchase a used car at that time. What type of computation would he use to determine the amount he will have for his purchase?

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

Inflation is a rise in the general level of prices and it, reduces the buying power of the dollar.

Accepted Answer

A) True 
 B)False

Question 4

Personal financial planning is the process of managing your money to achieve personal economic satisfaction.

Accepted Answer

A) True 
 B)False

Question 5

Susan Smith has a goal of "saving $25 per month for a TV". Considering the SMART approach, Susan's goal lacks

Accepted Answer

A)  Measurable terms 
B)  A realistic perspective 
C)  An action-orientation 
D)  A specific objective 
E)  A time frame 
A)  Measurable terms 
B)  A realistic perspective 
C)  An action-orientation 
D)  A specific objective 
E)  A time frame

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Place the following steps for a personal financial plan in the proper order: 
1. Review and revise the financial plan
2. Identify alternative courses of action
3. Create and implement your financial action plan
4. Determine your current financial situation
5. Evaluate alternatives
6. Develop your financial goals

Accepted Answer

A)  6, 1, 2, 5, 3, 4 
B)  4, 2, 6, 5, 3, 1 
C)  3, 6, 4, 2, 5, 1 
D)  4, 6, 2, 5, 3, 1 
E)  6, 2, 5, 4, 1, 3 
A)  6, 1, 2, 5, 3, 4 
B)  4, 2, 6, 5, 3, 1 
C)  3, 6, 4, 2, 5, 1 
D)  4, 6, 2, 5, 3, 1 
E)  6, 2, 5, 4, 1, 3

Question 8

Attempts to increase income through employment are part of the _____________ component of financial planning.

Accepted Answer

A)  Obtaining 
B)  Planning 
C)  Saving 
D)  Borrowing 
E)  Spending 
A)  Obtaining 
B)  Planning 
C)  Saving 
D)  Borrowing 
E)  Spending

Question 9

An advantage of effective personal financial planning is:

Accepted Answer

A)  The use of low-interest savings 
B)  Increased impulse spending 
C)  Increased control of financial affairs 
D)  More credit card debt 
E)  Less monitoring of investments 
A)  The use of low-interest savings 
B)  Increased impulse spending 
C)  Increased control of financial affairs 
D)  More credit card debt 
E)  Less monitoring of investments

Question 10

Short-term goals are usually achieved within the next year or so.

Accepted Answer

A) True 
 B)False

Question 11

To develop financial goals, one should

Accepted Answer

A)  Set several general goals for the short-term 
B)  Only set long-term goals after short-term goals have been accomplished 
C)  Focus on intermediate goals first 
D)  Identify specific, realistic goals that are measurable along with a time frame and an action plan 
E)  Not worry about whether or not the goals can be achieved based on one's income and life situation 
A)  Set several general goals for the short-term 
B)  Only set long-term goals after short-term goals have been accomplished 
C)  Focus on intermediate goals first 
D)  Identify specific, realistic goals that are measurable along with a time frame and an action plan 
E)  Not worry about whether or not the goals can be achieved based on one's income and life situation

Question 12

Interest earned is calculated by multiplying the principal times the time value of money.

Accepted Answer

A) True 
 B)False

Question 13

Financial Plans are only created by financial planners.

Accepted Answer

A) True 
 B)False

Question 14

Who is less likely to be harmed by inflation?

Accepted Answer

A)  Retired people 
B)  Lenders 
C)  Borrowers 
D)  Fixed income consumers 
E)  Financial regulators 
A)  Retired people 
B)  Lenders 
C)  Borrowers 
D)  Fixed income consumers 
E)  Financial regulators

Question 15

A financial plan is an informal report that analyzes past financial decisions.

Accepted Answer

A) True 
 B)False

Question 16

Risks associated with many financial decisions are easy to identify and evaluate.

Accepted Answer

A) True 
 B)False

Question 17

Paul Davis 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 18

Purchasing an appliance is an example of a consumable-product goal.

Accepted Answer

A) True 
 B)False

Question 19

The stages in the family situation and financial needs of an adult 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 20

Opportunity costs refer to money already spent.

Accepted Answer

A) True 
 B)False

Personal opportunity costs refer to resources, such as time, health, and energy, that are given up when a choice is made.

Steve Wilson wants to deposit $150 per month into an account earning 4 percent for the next 3 years, so he can purchase a used car at that time. What type of computation would he use to determine the amount he will have for his purchase?

Inflation is a rise in the general level of prices and it, reduces the buying power of the dollar.

Personal financial planning is the process of managing your money to achieve personal economic satisfaction.

Susan Smith has a goal of "saving $25 per month for a TV". Considering the SMART approach, Susan's goal lacks

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

Attempts to increase income through employment are part of the _____________ component of financial planning.

An advantage of effective personal financial planning is:

Short-term goals are usually achieved within the next year or so.

To develop financial goals, one should

Interest earned is calculated by multiplying the principal times the time value of money.

Financial Plans are only created by financial planners.

Who is less likely to be harmed by inflation?

A financial plan is an informal report that analyzes past financial decisions.

Risks associated with many financial decisions are easy to identify and evaluate.

Paul Davis 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?

Purchasing an appliance is an example of a consumable-product goal.

The stages in the family situation and financial needs of an adult is called the

Opportunity costs refer to money already spent.

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters

Exam 1: Personal Financial Planning in Action

Personal opportunity costs refer to resources, such as time, health, and energy, that are given up when a choice is made.

Steve Wilson wants to deposit $150 per month into an account earning 4 percent for the next 3 years, so he can purchase a used car at that time. What type of computation would he use to determine the amount he will have for his purchase?

Inflation is a rise in the general level of prices and it, reduces the buying power of the dollar.

Personal financial planning is the process of managing your money to achieve personal economic satisfaction.

Susan Smith has a goal of "saving $25 per month for a TV". Considering the SMART approach, Susan's goal lacks

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

Attempts to increase income through employment are part of the _____________ component of financial planning.

An advantage of effective personal financial planning is:

Short-term goals are usually achieved within the next year or so.

To develop financial goals, one should

Interest earned is calculated by multiplying the principal times the time value of money.

Financial Plans are only created by financial planners.

Who is less likely to be harmed by inflation?

A financial plan is an informal report that analyzes past financial decisions.

Risks associated with many financial decisions are easy to identify and evaluate.

Paul Davis 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?

Purchasing an appliance is an example of a consumable-product goal.

The stages in the family situation and financial needs of an adult is called the

Opportunity costs refer to money already spent.

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters