Question 1

For most people working in large firms,employee benefits are an important part of their financial planning.

Accepted Answer

A) True 
 B)False

Question 2

How long you invest is not nearly as important as the rate of interest you can earn on your investments.

Accepted Answer

A) True 
 B)False

Question 3

The average propensity to consume refers to the

Accepted Answer

A)  dollars of income spent for current consumption. 
B)  percentage of income saved. 
C)  expenditures for the minimum necessities of life. 
D)  percentage of income spent for current consumption. 
E)  fact that people with higher incomes spend more for the necessities of life. 
A)  dollars of income spent for current consumption. 
B)  percentage of income saved. 
C)  expenditures for the minimum necessities of life. 
D)  percentage of income spent for current consumption. 
E)  fact that people with higher incomes spend more for the necessities of life.

Question 4

Money is

Accepted Answer

A)  the reason for all transactions. 
B)  a medium of exchange. 
C)  the purpose of our economy. 
D)  a medium of consumption. 
E)  a measure of propensity to consume. 
A)  the reason for all transactions. 
B)  a medium of exchange. 
C)  the purpose of our economy. 
D)  a medium of consumption. 
E)  a measure of propensity to consume.

Question 5

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

Accepted Answer

A)  16.7% 
B)  25.5% 
C)  75.7% 
D)  83.3% 
E)  95.5% 
A)  16.7% 
B)  25.5% 
C)  75.7% 
D)  83.3% 
E)  95.5%

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[GDP | CPI] is the total of all goods and services produced by workers located within the country.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 7

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Accepted Answer

A) True 
 B)False

Question 8

When setting financial goals,one should typically start by setting

Accepted Answer

A)  short-term goals. 
B)  Intermediate-term goals. 
C)  long-term goals. 
D)  a and b 
E)  b and c 
A)  short-term goals. 
B)  Intermediate-term goals. 
C)  long-term goals. 
D)  a and b 
E)  b and c

Question 9

Current consumption effects future consumption.

Accepted Answer

A) True 
 B)False

Question 10

Employee benefits may include

Accepted Answer

A)  health insurance 
B)  disability insurance 
C)  life insurance 
D)  only a and b above 
E)  all of the above 
A)  health insurance 
B)  disability insurance 
C)  life insurance 
D)  only a and b above 
E)  all of the above

Question 11

Financial goals should be

Accepted Answer

A)  specific. 
B)  attainable. 
C)  prioritized. 
D)  all of these 
E)  none of these 
A)  specific. 
B)  attainable. 
C)  prioritized. 
D)  all of these 
E)  none of these

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A stronger economy leads to [higher employment | lower employment].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 13

A ____ is a designation earned by financial planners after completing required courses of study.

Accepted Answer

A)  MBA 
B)  LUTCF 
C)  CFP 
D)  E.A. 
E)  CLU 
A)  MBA 
B)  LUTCF 
C)  CFP 
D)  E.A. 
E)  CLU

Question 14

Government places controls on the personal financial environment by use of

Accepted Answer

A)  taxation and fiscal policy. 
B)  taxation and regulation. 
C)  taxation and competition. 
D)  regulation and competition. 
E)  regulation and fiscal policy. 
A)  taxation and fiscal policy. 
B)  taxation and regulation. 
C)  taxation and competition. 
D)  regulation and competition. 
E)  regulation and fiscal policy.

Question 15

High interest rates after the financial crisis of 2008-2009 reflect the Federal Reserve's efforts to tighten,or reduce,the money supply.

Accepted Answer

A) True 
 B)False

Question 16

The amount of goods and services each dollar buys at a given point in time is:

Accepted Answer

A)  inflation 
B)  consumer price index (CPI) 
C)  purchasing power 
D)  none of the above 
A)  inflation 
B)  consumer price index (CPI) 
C)  purchasing power 
D)  none of the above

Question 17

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

Accepted Answer

A)  career. 
B)  employee benefits. 
C)  estate. 
D)  insurance. 
E)  savings. 
A)  career. 
B)  employee benefits. 
C)  estate. 
D)  insurance. 
E)  savings.

Question 18

Low interest rates after 2008 and 2009 reflect the Federal Reserve's desire to

Accepted Answer

A)  Stimulate economic growth 
B)  Reduce unemployment 
C)  Reduce inflation 
D)  a and b 
E)  a,b,and c 
A)  Stimulate economic growth 
B)  Reduce unemployment 
C)  Reduce inflation 
D)  a and b 
E)  a,b,and c

Question 19

A personal computer can be very useful in assisting one with their financial planning.

Accepted Answer

A) True 
 B)False

Question 20

Wealth can be defined as the total value of all the things you own.

Accepted Answer

A) True 
 B)False

For most people working in large firms,employee benefits are an important part of their financial planning.

How long you invest is not nearly as important as the rate of interest you can earn on your investments.

The average propensity to consume refers to the

Money is

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[GDP | CPI] is the total of all goods and services produced by workers located within the country.

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

When setting financial goals,one should typically start by setting

Current consumption effects future consumption.

Employee benefits may include

Financial goals should be

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A stronger economy leads to [higher employment | lower employment].

A ____ is a designation earned by financial planners after completing required courses of study.

Government places controls on the personal financial environment by use of

High interest rates after the financial crisis of 2008-2009 reflect the Federal Reserve's efforts to tighten,or reduce,the money supply.

The amount of goods and services each dollar buys at a given point in time is:

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

Low interest rates after 2008 and 2009 reflect the Federal Reserve's desire to

A personal computer can be very useful in assisting one with their financial planning.

Wealth can be defined as the total value of all the things you own.

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

For most people working in large firms,employee benefits are an important part of their financial planning.

How long you invest is not nearly as important as the rate of interest you can earn on your investments.

The average propensity to consume refers to the

Money is

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[GDP | CPI] is the total of all goods and services produced by workers located within the country.

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

When setting financial goals,one should typically start by setting

Current consumption effects future consumption.

Employee benefits may include

Financial goals should be

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A stronger economy leads to [higher employment | lower employment].

A ____ is a designation earned by financial planners after completing required courses of study.

Government places controls on the personal financial environment by use of

High interest rates after the financial crisis of 2008-2009 reflect the Federal Reserve's efforts to tighten,or reduce,the money supply.

The amount of goods and services each dollar buys at a given point in time is:

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

Low interest rates after 2008 and 2009 reflect the Federal Reserve's desire to

A personal computer can be very useful in assisting one with their financial planning.

Wealth can be defined as the total value of all the things you own.

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters