Question 1

The length of time you keep your money invested is less important than the rate of return you earn on your investments.

Accepted Answer

A) True 
 B)False  False

Question 2

Saving for a child's education is an example of

Accepted Answer

A) accumulating wealth. 
B) a tangible asset. 
C) estate planning. 
D) deferred spending. 
E) propensity to consume. 
A) accumulating wealth. 
B) a tangible asset. 
C) estate planning. 
D) deferred spending. 
E) propensity to consume. D

Question 3

The heart of sound financial planning is improved standard of living.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is NOT a common misconception about financial planning?

Accepted Answer

A) A professional financial planner is an unnecessary expense. 
B) A little credit card debt is fine. 
C) You don't need a budget if you have a general idea of what you earn and spend. 
D) Retirement is a lifetime away. 
E) A second income doesn't add as much as expected to the bottom line. 
A) A professional financial planner is an unnecessary expense. 
B) A little credit card debt is fine. 
C) You don't need a budget if you have a general idea of what you earn and spend. 
D) Retirement is a lifetime away. 
E) A second income doesn't add as much as expected to the bottom line.

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The two principal constraints which government places upon us are regulations and [tariffs | taxes].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

Accepted Answer

A) True 
 B)False

Question 7

Eliza's employer gives her a certain amount of money each year to spend on benefits of her choice.Eliza has a cafeteria plan.

Accepted Answer

A) True 
 B)False

Question 8

The primary reason people use financial advisors is

Accepted Answer

A) unhappiness with results of managing their own finances. 
B) saving for their children's college education. 
C) tax issues. 
D) estate and inheritance planning. 
E) retirement needs. 
A) unhappiness with results of managing their own finances. 
B) saving for their children's college education. 
C) tax issues. 
D) estate and inheritance planning. 
E) retirement needs.

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Which of the following is a measure of inflation based on changes in the cost of a market basket of consumer goods and services?

Accepted Answer

A) Inflation 
B) Consumer price index (CPI) 
C) Purchasing power 
D) None of these 
A) Inflation 
B) Consumer price index (CPI) 
C) Purchasing power 
D) None of these

Question 11

One good way to save money is to purchase a new car every eight years to avoid high maintenance costs.

Accepted Answer

A) True 
 B)False

Question 12

The average American has less than $50,000 in savings.

Accepted Answer

A) True 
 B)False

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Tax | Liability and insurance] planning is introduced early in the life cycle.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-An adequate emergency fund should last [2-3 months | 6-9 months].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 15

Accumulating wealth for later years is called estate planning.

Accepted Answer

A) True 
 B)False

Question 16

Utility refers to

Accepted Answer

A) the satisfaction you receive from purchasing something. 
B) how much money you receive during the year. 
C) the total of your spending for the year. 
D) the value of your investments at any given time. 
E) none of these. 
A) the satisfaction you receive from purchasing something. 
B) how much money you receive during the year. 
C) the total of your spending for the year. 
D) the value of your investments at any given time. 
E) none of these.

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

Estate planning involves

Accepted Answer

A) considering how your wealth can be most effectively passed on to heirs. 
B) payment of all back taxes. 
C) dissolution of all privately held corporations. 
D) valuation and auctioning of your valuables. 
E) planning retirement. 
A) considering how your wealth can be most effectively passed on to heirs. 
B) payment of all back taxes. 
C) dissolution of all privately held corporations. 
D) valuation and auctioning of your valuables. 
E) planning retirement.

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Financial planning [does | does not] guarantee a sound financial future.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or family.

Accepted Answer

A) True 
 B)False

The length of time you keep your money invested is less important than the rate of return you earn on your investments.

Saving for a child's education is an example of

The heart of sound financial planning is improved standard of living.

Which of the following is NOT a common misconception about financial planning?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The two principal constraints which government places upon us are regulations and [tariffs | taxes].

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

Eliza's employer gives her a certain amount of money each year to spend on benefits of her choice.Eliza has a cafeteria plan.

The primary reason people use financial advisors is

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

Which of the following is a measure of inflation based on changes in the cost of a market basket of consumer goods and services?

One good way to save money is to purchase a new car every eight years to avoid high maintenance costs.

The average American has less than $50,000 in savings.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Tax | Liability and insurance] planning is introduced early in the life cycle.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An adequate emergency fund should last [2-3 months | 6-9 months].

Accumulating wealth for later years is called estate planning.

Utility refers to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Estate planning involves

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Financial planning [does | does not] guarantee a sound financial future.

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or family.

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

The length of time you keep your money invested is less important than the rate of return you earn on your investments.

Saving for a child's education is an example of

The heart of sound financial planning is improved standard of living.

Which of the following is NOT a common misconception about financial planning?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The two principal constraints which government places upon us are regulations and [tariffs | taxes].

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

Eliza's employer gives her a certain amount of money each year to spend on benefits of her choice.Eliza has a cafeteria plan.

The primary reason people use financial advisors is

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

Which of the following is a measure of inflation based on changes in the cost of a market basket of consumer goods and services?

One good way to save money is to purchase a new car every eight years to avoid high maintenance costs.

The average American has less than $50,000 in savings.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Tax | Liability and insurance] planning is introduced early in the life cycle.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An adequate emergency fund should last [2-3 months | 6-9 months].

Accumulating wealth for later years is called estate planning.

Utility refers to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Estate planning involves

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Financial planning [does | does not] guarantee a sound financial future.

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or family.

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters