Question 1

Which of the following is an example of money management?

Accepted Answer

A)  Putting your money in a savings account at your bank 
B)  Shopping around for the credit card with the best interest rate 
C)  Deciding to delay buying a new car until you can pay cash 
D)  Paying off a loan early to reduce the interest charges 
A)  Putting your money in a savings account at your bank 
B)  Shopping around for the credit card with the best interest rate 
C)  Deciding to delay buying a new car until you can pay cash 
D)  Paying off a loan early to reduce the interest charges

Question 2

Your financial plan is usually strongly influenced by

Accepted Answer

A)  your parents. 
B)  your tolerance for risk and your self-discipline. 
C)  your peers. 
D)  your age. 
A)  your parents. 
B)  your tolerance for risk and your self-discipline. 
C)  your peers. 
D)  your age.

Question 3

What is the core purpose of buying insurance?

Accepted Answer

A)  Protect your wealth and assets 
B)  Make sure you make money on any claim 
C)  Insurance is an expense a careful investor needs to minimize 
D)  Make sure you leave an estate when you are gone 
A)  Protect your wealth and assets 
B)  Make sure you make money on any claim 
C)  Insurance is an expense a careful investor needs to minimize 
D)  Make sure you leave an estate when you are gone

Question 4

Use the following two columns of items to answer the matching questions below:
-liquidity

Accepted Answer

A) determining how your wealth will be distributed before or upon your death 
B) what you owe 
C) forecasting future expenses and savings 
D) source of current information about a variety of topics 
E) value of what you on minus what you owe
F)determining how much money you should set aside for retirement
G)access to funds to cover any short-term cash deficiencies
H)uncertainty on a potential return on an investment
I)decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
J)what you own 
A) determining how your wealth will be distributed before or upon your death 
B) what you owe 
C) forecasting future expenses and savings 
D) source of current information about a variety of topics 
E) value of what you on minus what you owe
F)determining how much money you should set aside for retirement
G)access to funds to cover any short-term cash deficiencies
H)uncertainty on a potential return on an investment
I)decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
J)what you own

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 his adjustable rate mortgage.The increased mortgage payment started in July and was in effect for the remainder of the year.What was the total impact on Jakob's cash flow for the year?

Accepted Answer

A)  $1,000 
B)  $5,400 
C)  $6,400 
D)  $7,600 
A)  $1,000 
B)  $5,400 
C)  $6,400 
D)  $7,600

Question 7

Goals should be set as high as possible regardless of reality because they may eventually be obtainable.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not an asset?

Accepted Answer

A)  Your house that you rent 
B)  Your car that you financed 
C)  Your coin collection given to you by your grandfather 
D)  Your textbooks 
A)  Your house that you rent 
B)  Your car that you financed 
C)  Your coin collection given to you by your grandfather 
D)  Your textbooks

Question 9

Your budget is influenced by your income,which in turn is influenced by your education and career decisions.

Accepted Answer

A) True 
 B)False

Question 10

People do not need to determine how much money to set aside for retirement and how those funds should be invested until they near their retirement age.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would not be a factor in evaluating your current financial position?

Accepted Answer

A)  Income 
B)  Expenses 
C)  Possible lottery winnings 
D)  Assets 
A)  Income 
B)  Expenses 
C)  Possible lottery winnings 
D)  Assets

Question 12

In addition to the text,Web sites and financial magazines are good sources for help in financial planning.

Accepted Answer

A) True 
 B)False

Question 13

Use the following two columns of items to answer the matching questions below:
-web site

Accepted Answer

A) determining how your wealth will be distributed before or upon your death 
B) what you owe 
C) forecasting future expenses and savings 
D) source of current information about a variety of topics 
E) value of what you on minus what you owe
F)determining how much money you should set aside for retirement
G)access to funds to cover any short-term cash deficiencies
H)uncertainty on a potential return on an investment
I)decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
J)what you own 
A) determining how your wealth will be distributed before or upon your death 
B) what you owe 
C) forecasting future expenses and savings 
D) source of current information about a variety of topics 
E) value of what you on minus what you owe
F)determining how much money you should set aside for retirement
G)access to funds to cover any short-term cash deficiencies
H)uncertainty on a potential return on an investment
I)decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
J)what you own

Question 14

Which of the following does not protect your assets and/or income?

Accepted Answer

A)  Money insurance 
B)  Disability insurance 
C)  Automobile insurance 
D)  Life and health insurance 
A)  Money insurance 
B)  Disability insurance 
C)  Automobile insurance 
D)  Life and health insurance

Question 15

The value of what you own minus the value of what you owe is called your net worth.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a way that insurance is designed to protect your wealth?

Accepted Answer

A)  Protecting the assets that you own 
B)  Limiting your exposure to potential liabilities 
C)  Protecting your income 
D)  Protecting your investments from downturns in the stock market 
A)  Protecting the assets that you own 
B)  Limiting your exposure to potential liabilities 
C)  Protecting your income 
D)  Protecting your investments from downturns in the stock market

Question 17

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?

Accepted Answer

Assets of $5,300,lia

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Use the following two columns of items to answer the matching questions below:
-estate planning

Accepted Answer

A) determining how your wealth will be distributed before or upon your death 
B) what you owe 
C) forecasting future expenses and savings 
D) source of current information about a variety of topics 
E) value of what you on minus what you owe
F)determining how much money you should set aside for retirement
G)access to funds to cover any short-term cash deficiencies
H)uncertainty on a potential return on an investment
I)decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
J)what you own 
A) determining how your wealth will be distributed before or upon your death 
B) what you owe 
C) forecasting future expenses and savings 
D) source of current information about a variety of topics 
E) value of what you on minus what you owe
F)determining how much money you should set aside for retirement
G)access to funds to cover any short-term cash deficiencies
H)uncertainty on a potential return on an investment
I)decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
J)what you own

Question 20

A personal financial plan specifies financial goals and describes

Accepted Answer

A)  saving, investing, and asset valuation. 
B)  spending, saving, and credit card financing. 
C)  spending, financing, and investment plans. 
D)  saving and spending only. 
A)  saving, investing, and asset valuation. 
B)  spending, saving, and credit card financing. 
C)  spending, financing, and investment plans. 
D)  saving and spending only.

Which of the following is an example of money management?

Your financial plan is usually strongly influenced by

What is the core purpose of buying insurance?

Use the following two columns of items to answer the matching questions below: -liquidity

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

Goals should be set as high as possible regardless of reality because they may eventually be obtainable.

Which of the following is not an asset?

Your budget is influenced by your income,which in turn is influenced by your education and career decisions.

People do not need to determine how much money to set aside for retirement and how those funds should be invested until they near their retirement age.

Which of the following would not be a factor in evaluating your current financial position?

In addition to the text,Web sites and financial magazines are good sources for help in financial planning.

Use the following two columns of items to answer the matching questions below: -web site

Which of the following does not protect your assets and/or income?

The value of what you own minus the value of what you owe is called your net worth.

Which of the following is not a way that insurance is designed to protect your wealth?

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?

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

Use the following two columns of items to answer the matching questions below: -estate planning

A personal financial plan specifies financial goals and describes

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

Integrating the Components of a Financial Plan

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Exam 1: Overview of a Financial Plan

Which of the following is an example of money management?

Your financial plan is usually strongly influenced by

What is the core purpose of buying insurance?

Use the following two columns of items to answer the matching questions below: -liquidity

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

Goals should be set as high as possible regardless of reality because they may eventually be obtainable.

Which of the following is not an asset?

Your budget is influenced by your income,which in turn is influenced by your education and career decisions.

People do not need to determine how much money to set aside for retirement and how those funds should be invested until they near their retirement age.

Which of the following would not be a factor in evaluating your current financial position?

In addition to the text,Web sites and financial magazines are good sources for help in financial planning.

Use the following two columns of items to answer the matching questions below: -web site

Which of the following does not protect your assets and/or income?

The value of what you own minus the value of what you owe is called your net worth.

Which of the following is not a way that insurance is designed to protect your wealth?

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?

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

Use the following two columns of items to answer the matching questions below: -estate planning

A personal financial plan specifies financial goals and describes

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

Integrating the Components of a Financial Plan

Filters