Question 1

The financial crisis of 2008 and 2009 is best characterized as a

Accepted Answer

A) recession. 
B) depression. 
C) downturn. 
D) business trough. 
E) meltdown. 
A) recession. 
B) depression. 
C) downturn. 
D) business trough. 
E) meltdown.

Question 2

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

Accepted Answer

A) career. 
B) employee benefits. 
C) estate. 
D) insurance. 
E) savings. 
A) career. 
B) employee benefits. 
C) estate. 
D) insurance. 
E) savings.

Question 3

The longer you wait to begin retirement planning,the less you will likely have in your retirement fund.

Accepted Answer

A) True 
 B)False

Question 4

Financial planning is a continuing,lifelong process.

Accepted Answer

A) True 
 B)False

Question 5

Financial assets include investments such as stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 6

Wealth can be defined as the total value of all the things you own.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following questions should you ask yourself when developing your financial goals?

Accepted Answer

A) How important is money to me? 
B) Am I a risk taker? 
C) What do I like to buy? 
D) Does money make me feel secure? 
E) All of these 
A) How important is money to me? 
B) Am I a risk taker? 
C) What do I like to buy? 
D) Does money make me feel secure? 
E) All of these

Question 8

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 average [self employed | retired] household has higher income.

Accepted Answer

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

Question 9

Typically,higher levels of education are rewarded with higher income over the lifetime.

Accepted Answer

A) True 
 B)False

Question 10

Professional financial planners

Accepted Answer

A) help by establishing personal financial goals. 
B) are only for wealthy investors. 
C) are skilled at offering simple solutions to complex financial problems. 
D) make financial decisions for investors. 
E) are best utilized during retirement years. 
A) help by establishing personal financial goals. 
B) are only for wealthy investors. 
C) are skilled at offering simple solutions to complex financial problems. 
D) make financial decisions for investors. 
E) are best utilized during retirement years.

Question 11

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 government employs monetary and fiscal policy to help foster a [fast growing economy | no growth economy].

Accepted Answer

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

Question 12

Your house is an example of a tangible asset.

Accepted Answer

A) True 
 B)False

Question 13

Ideally,retirement planning should begin

Accepted Answer

A) during the year before retirement. 
B) when the last child has left home. 
C) as soon as the mortgage is paid off. 
D) when you get married. 
E) none of these. 
A) during the year before retirement. 
B) when the last child has left home. 
C) as soon as the mortgage is paid off. 
D) when you get married. 
E) none of these.

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.
-[Vacations | Education] would be considered a necessity of life.

Accepted Answer

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

Question 15

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.
-Your level of formal education is a [controllable | noncontrollable] factor that has a considerable effect on your income.

Accepted Answer

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

Question 16

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 Consumer Price Index is a measure of [unemployment | inflation].

Accepted Answer

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

Question 17

Generally,as income rises,the average propensity to consume

Accepted Answer

A) stabilizes. 
B) drops to zero. 
C) increases. 
D) becomes erratic. 
E) decreases. 
A) stabilizes. 
B) drops to zero. 
C) increases. 
D) becomes erratic. 
E) decreases.

Question 18

The key input for a cash budget is long-term financial goals.

Accepted Answer

A) True 
 B)False

Question 19

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

Accepted Answer

A) True 
 B)False

Question 20

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.
-After reaching adulthood,your financial goals will [stabilize | continue to change].

Accepted Answer

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

The financial crisis of 2008 and 2009 is best characterized as a

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

The longer you wait to begin retirement planning,the less you will likely have in your retirement fund.

Financial planning is a continuing,lifelong process.

Financial assets include investments such as stocks and bonds.

Wealth can be defined as the total value of all the things you own.

Which of the following questions should you ask yourself when developing your financial goals?

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 average [self employed | retired] household has higher income.

Typically,higher levels of education are rewarded with higher income over the lifetime.

Professional financial planners

Your house is an example of a tangible asset.

Ideally,retirement planning should begin

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. -[Vacations | Education] would be considered a necessity of life.

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 Consumer Price Index is a measure of [unemployment | inflation].

Generally,as income rises,the average propensity to consume

The key input for a cash budget is long-term financial goals.

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

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. -After reaching adulthood,your financial goals will [stabilize | continue to change].

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 financial crisis of 2008 and 2009 is best characterized as a

Martha is 80 and has a very high net worth.Her most important financial concern is probably her

The longer you wait to begin retirement planning,the less you will likely have in your retirement fund.

Financial planning is a continuing,lifelong process.

Financial assets include investments such as stocks and bonds.

Wealth can be defined as the total value of all the things you own.

Which of the following questions should you ask yourself when developing your financial goals?

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 average [self employed | retired] household has higher income.

Typically,higher levels of education are rewarded with higher income over the lifetime.

Professional financial planners

Your house is an example of a tangible asset.

Ideally,retirement planning should begin

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. -[Vacations | Education] would be considered a necessity of life.

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 Consumer Price Index is a measure of [unemployment | inflation].

Generally,as income rises,the average propensity to consume

The key input for a cash budget is long-term financial goals.

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

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. -After reaching adulthood,your financial goals will [stabilize | continue to change].

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