Question 1

Current consumption affects future consumption.

Accepted Answer

A) True 
 B)False

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.
-A stronger economy leads to [higher employment | lower employment].

Accepted Answer

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

Question 3

Mutual funds are examples of financial assets.

Accepted Answer

A) True 
 B)False

Question 4

Tax planning is most commonly done to

Accepted Answer

A) reduce debt balances. 
B) change income patterns to avoid taxes. 
C) minimize taxes. 
D) pay extra taxes. 
E) learn the tax code. 
A) reduce debt balances. 
B) change income patterns to avoid taxes. 
C) minimize taxes. 
D) pay extra taxes. 
E) learn the tax code.

Question 5

Financial planning is a dynamic process.

Accepted Answer

A) True 
 B)False

Question 6

The last step in the financial planning process is to

Accepted Answer

A) develop financial plans and strategies to achieve goals. 
B) use financial statements to evaluate results of plans and budgets, taking corrective action as required. 
C) implement financial plans and strategies. 
D) redefine goals and revise plans and strategies as personal circumstances change. 
E) periodically develop and implement budgets to monitor and control progress toward goals. 
A) develop financial plans and strategies to achieve goals. 
B) use financial statements to evaluate results of plans and budgets, taking corrective action as required. 
C) implement financial plans and strategies. 
D) redefine goals and revise plans and strategies as personal circumstances change. 
E) periodically develop and implement budgets to monitor and control progress toward goals.

Question 7

A primary determinant of your quality of life is

Accepted Answer

A) a tax bill. 
B) tangible property. 
C) wealth. 
D) motivation. 
E) income potential. 
A) a tax bill. 
B) tangible property. 
C) wealth. 
D) motivation. 
E) income potential.

Question 8

Your income is directly related to

Accepted Answer

A) your geographic location. 
B) your age. 
C) your education. 
D) all of these. 
E) none of these. 
A) your geographic location. 
B) your age. 
C) your education. 
D) all of these. 
E) none of these.

Question 9

Decreasing taxes stimulates the economy.

Accepted Answer

A) True 
 B)False

Question 10

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 American starting a career today can expect to have at least [seven | ten] jobs during his/her lifetime..

Accepted Answer

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

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.
-"1 want to accumulate a comfortable retirement fund" [would | would not] be a specific financial goal.

Accepted Answer

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

Question 12

A ____ is a designation earned by financial planners after completing required courses of study.

Accepted Answer

A) MBA 
B) LUTCF 
C) CFP 
D) E.A. 
E) CLU 
A) MBA 
B) LUTCF 
C) CFP 
D) E.A. 
E) CLU

Question 13

What policies can the government utilize to help stabilize the economy?

Accepted Answer

A) Price stabilization policy 
B) Monetary policy 
C) Fiscal policy 
D) b and c 
E) a, b, and c 
A) Price stabilization policy 
B) Monetary policy 
C) Fiscal policy 
D) b and c 
E) a, b, and c

Question 14

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Accepted Answer

A) True 
 B)False

Question 15

The government employs monetary and fiscal policy to ensure the level of economic activity always remains stable.

Accepted Answer

A) True 
 B)False

Question 16

An economy will usually go into a(n)_________ after a peak.

Accepted Answer

A) convolution 
B) expansion 
C) contraction 
D) recession 
E) depression 
A) convolution 
B) expansion 
C) contraction 
D) recession 
E) depression

Question 17

High interest rates after the financial crisis of 2008-2009 reflect the Federal Reserve's efforts to tighten,or reduce,the money supply.

Accepted Answer

A) True 
 B)False

Question 18

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

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.
-[Inflation | Consumer Price Index] is the amount of goods and services each dollar buys at a given point in time.

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.
-Having numerous credit cards can [improve | hurt] your credit score.

Accepted Answer

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

Current consumption affects future consumption.

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. -A stronger economy leads to [higher employment | lower employment].

Mutual funds are examples of financial assets.

Tax planning is most commonly done to

Financial planning is a dynamic process.

The last step in the financial planning process is to

A primary determinant of your quality of life is

Your income is directly related to

Decreasing taxes stimulates the economy.

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. -"1 want to accumulate a comfortable retirement fund" [would | would not] be a specific financial goal.

A ____ is a designation earned by financial planners after completing required courses of study.

What policies can the government utilize to help stabilize the economy?

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

The government employs monetary and fiscal policy to ensure the level of economic activity always remains stable.

An economy will usually go into a(n)_________ after a peak.

High interest rates after the financial crisis of 2008-2009 reflect the Federal Reserve's efforts to tighten,or reduce,the money supply.

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

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. -Having numerous credit cards can [improve | hurt] your credit score.

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

Current consumption affects future consumption.

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. -A stronger economy leads to [higher employment | lower employment].

Mutual funds are examples of financial assets.

Tax planning is most commonly done to

Financial planning is a dynamic process.

The last step in the financial planning process is to

A primary determinant of your quality of life is

Your income is directly related to

Decreasing taxes stimulates the economy.

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. -"1 want to accumulate a comfortable retirement fund" [would | would not] be a specific financial goal.

A ____ is a designation earned by financial planners after completing required courses of study.

What policies can the government utilize to help stabilize the economy?

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

The government employs monetary and fiscal policy to ensure the level of economic activity always remains stable.

An economy will usually go into a(n)_________ after a peak.

High interest rates after the financial crisis of 2008-2009 reflect the Federal Reserve's efforts to tighten,or reduce,the money supply.

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

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. -Having numerous credit cards can [improve | hurt] your credit score.

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