Question 1

The amount of money we set aside for future consumption will be determined by

Accepted Answer

A) our level of current wealth. 
B) how much we currently earn and spend. 
C) our education level. 
D) the current needs of our family. 
E) the cost of life's necessities. 
A) our level of current wealth. 
B) how much we currently earn and spend. 
C) our education level. 
D) the current needs of our family. 
E) the cost of life's necessities.

Question 2

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.
-Money can be withdrawn from tax-deferred retirement accounts without penalty beginning at age [59 1/2 | 62 1/2].

Accepted Answer

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

Question 3

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

Accepted Answer

A) True 
 B)False

Question 4

GDP refers to the total earnings of American workers during a year.

Accepted Answer

A) True 
 B)False

Question 5

Financial goals should be

Accepted Answer

A) specific. 
B) attainable. 
C) prioritized. 
D) all of these. 
E) none of these. 
A) specific. 
B) attainable. 
C) prioritized. 
D) all of these. 
E) none of these.

Question 6

Financial assets are paper assets,such as savings accounts and securities.

Accepted Answer

A) True 
 B)False

Question 7

Personal financial management is important because it

Accepted Answer

A) controls inflation. 
B) limits consumption. 
C) uses money as an end. 
D) makes personal financial goals easier to achieve. 
E) lessens economic differences among individuals. 
A) controls inflation. 
B) limits consumption. 
C) uses money as an end. 
D) makes personal financial goals easier to achieve. 
E) lessens economic differences among individuals.

Question 8

The four stages of an economic cycle would not include

Accepted Answer

A) trough. 
B) expansion. 
C) contraction. 
D) peak. 
E) stagnation. 
A) trough. 
B) expansion. 
C) contraction. 
D) peak. 
E) stagnation.

Question 9

A strong economy leads to

Accepted Answer

A) lower inflation. 
B) lower interest rates. 
C) higher employment. 
D) lower productivity. 
E) higher unemployment. 
A) lower inflation. 
B) lower interest rates. 
C) higher employment. 
D) lower productivity. 
E) higher unemployment.

Question 10

Defining financial goals is an important first step in the personal financial planning process.

Accepted Answer

A) True 
 B)False

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 primary determinant of your standard of living is your [wealth | propensity to consume].

Accepted Answer

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

Question 12

Over the long run,gaining an extra two percent on an investment makes little difference in earnings generated.

Accepted Answer

A) True 
 B)False

Question 13

Wealthy people have a higher average propensity to consume.

Accepted Answer

A) True 
 B)False

Question 14

Government places controls on the personal financial environment by use of

Accepted Answer

A) taxation and fiscal policy. 
B) taxation and regulation. 
C) taxation and competition. 
D) regulation and competition. 
E) regulation and fiscal policy. 
A) taxation and fiscal policy. 
B) taxation and regulation. 
C) taxation and competition. 
D) regulation and competition. 
E) regulation and fiscal policy.

Question 15

Family financial goals should be

Accepted Answer

A) very general in nature. 
B) realistically attainable. 
C) individually determined. 
D) set once for a lifetime. 
E) reserved for retirement planning. 
A) very general in nature. 
B) realistically attainable. 
C) individually determined. 
D) set once for a lifetime. 
E) reserved for retirement planning.

Question 16

Insurance provides a way to make money on unfortunate events.

Accepted Answer

A) True 
 B)False

Question 17

Businesses provide

Accepted Answer

A) stores. 
B) money payments. 
C) land and capital. 
D) labor. 
E) goods and services. 
A) stores. 
B) money payments. 
C) land and capital. 
D) labor. 
E) goods and services.

Question 18

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

Accepted Answer

A) True 
 B)False

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.
-The average income of household heads increases until age [55 | 65] then income starts decreasing.

Accepted Answer

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

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.
-The federal government's [fiscal | monetary] policy is used to stimulate or moderate economic growth.

Accepted Answer

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

The amount of money we set aside for future consumption will be determined by

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

GDP refers to the total earnings of American workers during a year.

Financial goals should be

Financial assets are paper assets,such as savings accounts and securities.

Personal financial management is important because it

The four stages of an economic cycle would not include

A strong economy leads to

Defining financial goals is an important first step in the personal financial planning process.

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 primary determinant of your standard of living is your [wealth | propensity to consume].

Over the long run,gaining an extra two percent on an investment makes little difference in earnings generated.

Wealthy people have a higher average propensity to consume.

Government places controls on the personal financial environment by use of

Family financial goals should be

Insurance provides a way to make money on unfortunate events.

Businesses provide

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

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 income of household heads increases until age [55 | 65] then income starts decreasing.

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 federal government's [fiscal | monetary] policy is used to stimulate or moderate economic growth.

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 amount of money we set aside for future consumption will be determined by

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

GDP refers to the total earnings of American workers during a year.

Financial goals should be

Financial assets are paper assets,such as savings accounts and securities.

Personal financial management is important because it

The four stages of an economic cycle would not include

A strong economy leads to

Defining financial goals is an important first step in the personal financial planning process.

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 primary determinant of your standard of living is your [wealth | propensity to consume].

Over the long run,gaining an extra two percent on an investment makes little difference in earnings generated.

Wealthy people have a higher average propensity to consume.

Government places controls on the personal financial environment by use of

Family financial goals should be

Insurance provides a way to make money on unfortunate events.

Businesses provide

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

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 income of household heads increases until age [55 | 65] then income starts decreasing.

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 federal government's [fiscal | monetary] policy is used to stimulate or moderate economic growth.

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