Exam 1: Understanding the Financial Planning Process

An economic contraction usually begins after a trough is reached.

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 net total value of all the items an individual owns is known as [wealth | assets].

The most important financial planning for young people concerns

Tangible assets are earning assets that are held for the returns they promise.

Rob requests that a GPS system be added to his new care at an additional cost.The GPS system provides Rob

A financial goal that would be important in all stages of the life cycle is creating and maintaining an emergency fund.

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 | Inflation] is the common denominator for gauging all financial transactions.

Federal income taxes are

Nearly 35% of Americans say retirement planning is their most pressing financial concern.

Government controls consumers and businesses by regulation and taxation.

Employee benefits may include

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 has [$59,000 | $81,000] in retirement accounts.

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 best way to achieve your financial objectives is to [save every extra dollar you can | develop a sound 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. -When investing,you should try to time the market [to buy when it's low | to sell when it's high].

Typically people with the lowest incomes tend to be

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. -[Utility | Propensity to consume] refers to the satisfaction you receive from buying certain items.

Consumer choices ultimately determine the kinds of goods and services businesses will provide.

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. -Typically,your salary will be [higher | lower] if you live in a large metropolitan area rather than a small town or rural area.

Long-term goals are typically for periods of over 6 years.

The median income of a person with a master's degree is more than double that of a person with only a high school diploma.