Question 1

By establishing high and unrealistic financial goals,you will probably

Accepted Answer

A)  improve the likelihood of achieving at least some success. 
B)  become discouraged and lose interest in planning. 
C)  increase the viability of your plan. 
D)  impress your spouse or significant other. 
A)  improve the likelihood of achieving at least some success. 
B)  become discouraged and lose interest in planning. 
C)  increase the viability of your plan. 
D)  impress your spouse or significant other.

Question 2

The first step in developing your financial plan is

Accepted Answer

A)  establish your financial goals. 
B)  pay off all your credit cards. 
C)  buy a cool car then begin saving money. 
D)  get a good job. 
A)  establish your financial goals. 
B)  pay off all your credit cards. 
C)  buy a cool car then begin saving money. 
D)  get a good job.

Question 3

________ is the process of forecasting future expenses and savings.

Accepted Answer

A)  Budgeting 
B)  Planning 
C)  Predicting 
D)  Fortune-telling 
A)  Budgeting 
B)  Planning 
C)  Predicting 
D)  Fortune-telling

Question 4

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

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

Estate planning

Accepted Answer

A)  protects your wealth against unnecessary taxes. 
B)  shelters your wealth against all taxes. 
C)  ensures that your wealth is distributed in the manner that the court determines. 
D)  involves saving to purchase a large country estate. 
A)  protects your wealth against unnecessary taxes. 
B)  shelters your wealth against all taxes. 
C)  ensures that your wealth is distributed in the manner that the court determines. 
D)  involves saving to purchase a large country estate.

Question 6

Your financial plan should include a plan for protecting your assets and income through insurance coverage.

Accepted Answer

A) True 
 B)False

Question 7

Various government agencies have conducted surveys that show most people have a good understanding of personal finance.

Accepted Answer

A) True 
 B)False

Question 8

Retirement planning should begin

Accepted Answer

A)  as early as possible in order that you accumulate sufficient funds for retirement. 
B)  as soon as you start working full time. 
C)  a few years before you plan on retiring. 
D)  you do not need to plan since social security and your firm's pension will be sufficient. 
A)  as early as possible in order that you accumulate sufficient funds for retirement. 
B)  as soon as you start working full time. 
C)  a few years before you plan on retiring. 
D)  you do not need to plan since social security and your firm's pension will be sufficient.

Question 9

Personal finance does not include the process of planning your

Accepted Answer

A)  spending. 
B)  financing. 
C)  investing. 
D)  spirituality. 
A)  spending. 
B)  financing. 
C)  investing. 
D)  spirituality.

Question 10

Which of the following is an example of an opportunity cost?

Accepted Answer

A)  Renting an apartment near school 
B)  Taking a class instead of working at your part-time job 
C)  Setting aside money for paying income tax 
D)  Purchasing automobile insurance 
A)  Renting an apartment near school 
B)  Taking a class instead of working at your part-time job 
C)  Setting aside money for paying income tax 
D)  Purchasing automobile insurance

Question 11

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

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 12

Which of the following statements is not true regarding education and financial position?

Accepted Answer

A)  Your financial position is highly influenced by the amount of education you pursue. 
B)  Higher education always guarantees a higher income. 
C)  The more education you have, the higher your earnings will likely be. 
D)  Before you choose a major, you should consider your skills, interests, and the career paths that will be available to you. 
A)  Your financial position is highly influenced by the amount of education you pursue. 
B)  Higher education always guarantees a higher income. 
C)  The more education you have, the higher your earnings will likely be. 
D)  Before you choose a major, you should consider your skills, interests, and the career paths that will be available to you.

Question 13

Which of the following is an example of an opportunity cost?

Accepted Answer

A)  Depositing money into a savings account so you will be able to pay cash for holiday gifts 
B)  Buying a car which depletes your savings 
C)  Giving up going to a movie in order to study for your finance exam 
D)  Purchasing a new computer 
A)  Depositing money into a savings account so you will be able to pay cash for holiday gifts 
B)  Buying a car which depletes your savings 
C)  Giving up going to a movie in order to study for your finance exam 
D)  Purchasing a new computer

Question 14

Put the following six steps in order for a financial plan:

Accepted Answer

A) identify and evaluate plans that could achieve your goals 
B) consider current financial position 
C) revise the plan 
D) establish financial goals 
E) evaluate the plan
F)select and implement the best plan 
A) identify and evaluate plans that could achieve your goals 
B) consider current financial position 
C) revise the plan 
D) establish financial goals 
E) evaluate the plan
F)select and implement the best plan

Question 15

Budgeting helps set goals by estimating ________ on a monthly basis to determine how much to save and spend.

Accepted Answer

A)  assets and income 
B)  liabilities and expenses 
C)  income and expenses 
D)  net worth and income 
A)  assets and income 
B)  liabilities and expenses 
C)  income and expenses 
D)  net worth and income

Question 16

A thorough understanding of this personal finance book qualifies you to become a financial adviser.

Accepted Answer

A) True 
 B)False

Question 17

Liquidity cannot be enhanced using sound money and credit management.

Accepted Answer

A) True 
 B)False

Question 18

Josh has decided to take a course at the local community college that could help him get a promotion at work.The course begins at 5 p.m.and goes until 9 p.m.on Monday nights.Josh normally works until 5 p.m.each day,but because of the drive time to the community college,he will need to leave work at 3 p.m.on class days.Josh currently earns $18.50 per hour.His employer contributes 10% of Josh's gross earnings to a 401(k)retirement plan.If the class meets 16 times,what is Josh's total opportunity cost for the class?

Accepted Answer

A)  $592.00 
B)  $800.00 
C)  $651.20 
D)  None 
A)  $592.00 
B)  $800.00 
C)  $651.20 
D)  None

Question 19

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

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

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

Accepted Answer

A)  Investment 
B)  Money 
C)  Liquidity 
D)  Risk 
A)  Investment 
B)  Money 
C)  Liquidity 
D)  Risk

By establishing high and unrealistic financial goals,you will probably

The first step in developing your financial plan is

________ is the process of forecasting future expenses and savings.

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

Estate planning

Your financial plan should include a plan for protecting your assets and income through insurance coverage.

Various government agencies have conducted surveys that show most people have a good understanding of personal finance.

Retirement planning should begin

Personal finance does not include the process of planning your

Which of the following is an example of an opportunity cost?

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

Which of the following statements is not true regarding education and financial position?

Which of the following is an example of an opportunity cost?

Put the following six steps in order for a financial plan:

Budgeting helps set goals by estimating ________ on a monthly basis to determine how much to save and spend.

A thorough understanding of this personal finance book qualifies you to become a financial adviser.

Liquidity cannot be enhanced using sound money and credit management.

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

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

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

By establishing high and unrealistic financial goals,you will probably

The first step in developing your financial plan is

________ is the process of forecasting future expenses and savings.

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

Estate planning

Your financial plan should include a plan for protecting your assets and income through insurance coverage.

Various government agencies have conducted surveys that show most people have a good understanding of personal finance.

Retirement planning should begin

Personal finance does not include the process of planning your

Which of the following is an example of an opportunity cost?

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

Which of the following statements is not true regarding education and financial position?

Which of the following is an example of an opportunity cost?

Put the following six steps in order for a financial plan:

Budgeting helps set goals by estimating ________ on a monthly basis to determine how much to save and spend.

A thorough understanding of this personal finance book qualifies you to become a financial adviser.

Liquidity cannot be enhanced using sound money and credit management.

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

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

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