Question 1

Which of the following will not improve your net worth?

Accepted Answer

A) Increase your income 
B) Decrease your expenses 
C) Increase your assets 
D) Increase your liabilities 
A) Increase your income 
B) Decrease your expenses 
C) Increase your assets 
D) Increase your liabilities D

Question 2

Liquid assets usually generate

Accepted Answer

A) high returns. 
B) returns like stocks. 
C) returns like bonds. 
D) lower returns. 
A) high returns. 
B) returns like stocks. 
C) returns like bonds. 
D) lower returns. D

Question 3

Which of the following does not increases your net worth?

Accepted Answer

A) An increase in your retirement balance 
B) An increase in your home value 
C) An increase in your mutual funds 
D) The purchase of a new car 
A) An increase in your retirement balance 
B) An increase in your home value 
C) An increase in your mutual funds 
D) The purchase of a new car D

Question 4

A home equity loan may do all of the following except

Accepted Answer

A) give you a tax deduction if you itemize. 
B) increase your current purchasing power. 
C) increase your spending in the future. 
D) prevent you from achieving your financial goals. 
A) give you a tax deduction if you itemize. 
B) increase your current purchasing power. 
C) increase your spending in the future. 
D) prevent you from achieving your financial goals.

Question 5

List five areas that affect your financial plan.

Accepted Answer

Budgeting,liquidity,

Question 6

Most people set financial goals early in life and these goals rarely change.

Accepted Answer

A) True 
 B)False

Question 7

Insurance protects against events that could reduce

Accepted Answer

A) your income. 
B) your chances of an accident. 
C) your wealth. 
D) Both A and C. 
A) your income. 
B) your chances of an accident. 
C) your wealth. 
D) Both A and C.

Question 8

If you are on a fixed income,you should not invest in

Accepted Answer

A) bonds. 
B) stocks that pay cash dividends. 
C) growth stocks. 
D) certificates of deposit. 
A) bonds. 
B) stocks that pay cash dividends. 
C) growth stocks. 
D) certificates of deposit.

Question 9

If you want periodic income,which of the following investments should you purchase?

Accepted Answer

A) Bonds 
B) Stocks that pay cash dividends 
C) Mutual funds 
D) A and B 
A) Bonds 
B) Stocks that pay cash dividends 
C) Mutual funds 
D) A and B

Question 10

To increase your net worth you should

Accepted Answer

A) pay off bills. 
B) spend your money carefully. 
C) invest in appreciating assets. 
D) Both A and C. 
A) pay off bills. 
B) spend your money carefully. 
C) invest in appreciating assets. 
D) Both A and C.

Question 11

________ is a means of protecting your assets and income.

Accepted Answer

The answer of ________ is a means of protecting your...

Question 12

As a result of the ________,the more you spend the less money you will have for liquidity or investments.

Accepted Answer

The answer of As a result of the ________,the more...

Question 13

What are three types of financing you have studied?

Accepted Answer

Credit car

Question 14

Which of the following will increase your net worth over time?

Accepted Answer

A) Leasing a car 
B) Renting a house 
C) Buying a house 
D) All of the above. 
A) Leasing a car 
B) Renting a house 
C) Buying a house 
D) All of the above.

Question 15

To monitor your financial plan over time,it is important to store finance-related documents in a safe and accessible place.

Accepted Answer

A) True 
 B)False

Question 16

Budgeting decisions involve a tradeoff between spending today and allocating funds for the future.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following key documents should not be kept in a safety deposit box?

Accepted Answer

A) The only copy of your will 
B) Your monthly bank statement 
C) Original copies of life insurance policies 
D) Deed to your house 
A) The only copy of your will 
B) Your monthly bank statement 
C) Original copies of life insurance policies 
D) Deed to your house

Question 18

A financial plan should be

Accepted Answer

A) prepared when you graduate from college and carefully followed thereafter without changes. 
B) prepared when you graduate from college and carefully followed until you retire when you will no longer need one. 
C) prepared when you graduate from college and reviewed/adjusted as events such as marriage,job changes,birth of children,and retirement necessitates. 
D) done only in a rough outline as it will change too often to make anything more detailed feasible. 
A) prepared when you graduate from college and carefully followed thereafter without changes. 
B) prepared when you graduate from college and carefully followed until you retire when you will no longer need one. 
C) prepared when you graduate from college and reviewed/adjusted as events such as marriage,job changes,birth of children,and retirement necessitates. 
D) done only in a rough outline as it will change too often to make anything more detailed feasible.

Question 19

________ should be kept in a safe at home or in a safety deposit box at a bank.

Accepted Answer

The answer of ________ should be kept in a safe...

Question 20

You should maintain just enough money in liquid assets to satisfy your liquidity needs,then you can earn a higher return on your other assets.

Accepted Answer

A) True 
 B)False

Exam 21: Integrating the Components of a Financial Plan

Which of the following will not improve your net worth?

Liquid assets usually generate

Which of the following does not increases your net worth?

A home equity loan may do all of the following except

List five areas that affect your financial plan.

Most people set financial goals early in life and these goals rarely change.

Insurance protects against events that could reduce

If you are on a fixed income,you should not invest in

If you want periodic income,which of the following investments should you purchase?

To increase your net worth you should

________ is a means of protecting your assets and income.

As a result of the ________,the more you spend the less money you will have for liquidity or investments.

What are three types of financing you have studied?

Which of the following will increase your net worth over time?

To monitor your financial plan over time,it is important to store finance-related documents in a safe and accessible place.

Budgeting decisions involve a tradeoff between spending today and allocating funds for the future.

Which of the following key documents should not be kept in a safety deposit box?

A financial plan should be

________ should be kept in a safe at home or in a safety deposit box at a bank.

You should maintain just enough money in liquid assets to satisfy your liquidity needs,then you can earn a higher return on your other assets.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Filters