Question 1

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

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 2

All of the following are true with regard to the demand for financial advisers except

Accepted Answer

A)  many people lack an understanding of personal finance. 
B)  many people prefer to rely on advisers rather than making their own decision. 
C)  many people are just not interested in making their own financial decisions. 
D)  the law requires that you use advisers before making investments. 
A)  many people lack an understanding of personal finance. 
B)  many people prefer to rely on advisers rather than making their own decision. 
C)  many people are just not interested in making their own financial decisions. 
D)  the law requires that you use advisers before making investments.

Question 3

During his ________ your Uncle Harvey decides to cut you out of his will.

Accepted Answer

The answer of During his ________ your Uncle Harvey decides...

Question 4

A complete financial plan includes all of the following except

Accepted Answer

A)  managing liquidity. 
B)  budgeting and tax planning. 
C)  investing money. 
D)  spiritual training. 
A)  managing liquidity. 
B)  budgeting and tax planning. 
C)  investing money. 
D)  spiritual training.

Question 5

Which of the following would be a long-term goal?

Accepted Answer

A)  Paying off a school loan in three years 
B)  Purchasing a car within six months 
C)  Saving enough money to retire in 20 years 
D)  Paying for two years of college 
A)  Paying off a school loan in three years 
B)  Purchasing a car within six months 
C)  Saving enough money to retire in 20 years 
D)  Paying for two years of college

Question 6

Your financial position is highly influenced by all of the following except

Accepted Answer

A)  the amount of education you pursue. 
B)  the current pay level you receive. 
C)  the current economy. 
D)  the bonus check your best friend just received. 
A)  the amount of education you pursue. 
B)  the current pay level you receive. 
C)  the current economy. 
D)  the bonus check your best friend just received.

Question 7

Opportunity cost refers to

Accepted Answer

A)  money needed for major consumer purchases. 
B)  what you give up or forego as a result of making a decision. 
C)  the amount paid for taxes when a purchase is made. 
D)  evaluating different alternatives for financial decisions. 
A)  money needed for major consumer purchases. 
B)  what you give up or forego as a result of making a decision. 
C)  the amount paid for taxes when a purchase is made. 
D)  evaluating different alternatives for financial decisions.

Question 8

Effective estate planning will ensure that your wealth is distributed according to your wishes,but will do nothing to reduce the potential taxes your estate is subject to.

Accepted Answer

A) True 
 B)False

Question 9

Which item is not one of the components of a personal financial plan?

Accepted Answer

A)  Setting aside money for season tickets to your favorite football team 
B)  Investing your money 
C)  Planning your retirement 
D)  Budgeting 
A)  Setting aside money for season tickets to your favorite football team 
B)  Investing your money 
C)  Planning your retirement 
D)  Budgeting

Question 10

Which of the following would not be considered an investment?

Accepted Answer

A)  A new television set 
B)  An art collection 
C)  A savings account 
D)  A mutual fund of stocks and bonds 
A)  A new television set 
B)  An art collection 
C)  A savings account 
D)  A mutual fund of stocks and bonds

Question 11

Which of the following is not a decision involved in managing your financing?

Accepted Answer

A)  Whether to obtain a 3 year versus 4 year loan on a new car 
B)  Whether to obtain a 15 year versus 30 year loan on a new home 
C)  Whether to pay off an existing loan 
D)  Whether to invest income in a savings account or in a stock 
A)  Whether to obtain a 3 year versus 4 year loan on a new car 
B)  Whether to obtain a 15 year versus 30 year loan on a new home 
C)  Whether to pay off an existing loan 
D)  Whether to invest income in a savings account or in a stock

Question 12

The wages that you forego when you leave work early to attend class are an example of a(n)________.

Accepted Answer

The answer of The wages that you forego when you...

Question 13

A measure of your wealth is

Accepted Answer

A)  the highest level of education you've attained. 
B)  the amount of your annual income. 
C)  the value of what you own minus the value of what you owe. 
D)  your tax bracket. 
A)  the highest level of education you've attained. 
B)  the amount of your annual income. 
C)  the value of what you own minus the value of what you owe. 
D)  your tax bracket.

Question 14

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

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

All of the following are true with regard to the demand for financial advisers except

During his ________ your Uncle Harvey decides to cut you out of his will.

A complete financial plan includes all of the following except

Which of the following would be a long-term goal?

Your financial position is highly influenced by all of the following except

Opportunity cost refers to

Effective estate planning will ensure that your wealth is distributed according to your wishes,but will do nothing to reduce the potential taxes your estate is subject to.

Which item is not one of the components of a personal financial plan?

Which of the following would not be considered an investment?

Which of the following is not a decision involved in managing your financing?

The wages that you forego when you leave work early to attend class are an example of a(n)________.

A measure of your wealth is

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

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

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

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

Exam 1: Overview of a Financial Plan

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

All of the following are true with regard to the demand for financial advisers except

During his ________ your Uncle Harvey decides to cut you out of his will.

A complete financial plan includes all of the following except

Which of the following would be a long-term goal?

Your financial position is highly influenced by all of the following except

Opportunity cost refers to

Effective estate planning will ensure that your wealth is distributed according to your wishes,but will do nothing to reduce the potential taxes your estate is subject to.

Which item is not one of the components of a personal financial plan?

Which of the following would not be considered an investment?

Which of the following is not a decision involved in managing your financing?

The wages that you forego when you leave work early to attend class are an example of a(n)________.

A measure of your wealth is

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

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

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

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