Exam 1: Overview of a Financial Plan

________ allows access to funds to cover any short-term cash deficiencies.

The act of determining how wealth will be distributed before or upon death is

The demand for financial advisers is not impacted because

Which of the following is a credit management decision?

Cash flows are affected by financial planning decisions.Which of the following is correct?

An example of an opportunity cost is the wages that you could have earned but did not because you were in class.

Opportunity cost refers to

If prepared properly,financial plans are set for life and should not need to be adjusted.

Jakob received a $1,000 a year raise in January,sold stocks in March for $6,000 that were originally purchased for $4,000,and in July had a $100 monthly increase in mortgage payments on an adjustable rate mortgage.The increased mortgage payment was in effect the remainder of the year.What was the total impact on Jakob's cash flow for the year? (a)$1,000 (b)$5,400 (c)$6,400 (d)$7,600

The major source of cash outflow for most people is the income they receive from employers.

Amanda has cash of $100,a car worth $5,000,and books worth $200.Her liabilities include a car loan of $2,000 and a credit card balance of $100.What is the total of her assets,liabilities,and net worth?

During the past year,Fritz spent $3,000 to take a cruise,bought stock costing $5,000 that by year-end had increased to $6,000,and paid off a credit card of $3,500.What was the net effect on Fritz's net worth of these transactions? (a)$11,500 (b)$12,500 (c)$8,500 (d)$1,000

The first step in budgeting is to evaluate your current financial position by looking at your income and expenses.

Which of the following is an example of money management?

Your financial plan is usually strongly influenced by

Retirement planning should take place

Which of the following is not an asset?

Insurance planning is not designed to protect your wealth in which of the following ways?

Most investments are subject to ________,which is the uncertainty surrounding their potential return.

A complete financial plan contains all of the following categories except