Question 1

Your personal value system will shape your attitude toward money and wealth accumulation.

Accepted Answer

A) True 
 B)False  True

Question 2

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. C

Question 3

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.

Accepted Answer

A

Question 4

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 that each dollar buys at a given point in time.

Accepted Answer

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

Question 5

The four stages of an economic cycle would not include:

Accepted Answer

A)  depression. 
B)  expansion. 
C)  recession. 
D)  recovery. 
E)  stagnation. 
A)  depression. 
B)  expansion. 
C)  recession. 
D)  recovery. 
E)  stagnation.

Question 6

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 7

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 8

_____ tends to increase and then decrease over the life cycle.

Accepted Answer

A)  Debt 
B)  Income 
C)  Emergency funds 
D)  a and b 
E)  a,b,and c 
A)  Debt 
B)  Income 
C)  Emergency funds 
D)  a and b 
E)  a,b,and c

Question 9

When setting financial goals,one should typically start by setting:

Accepted Answer

A)  short-term goals. 
B)  intermediate-term goals. 
C)  long-term goals. 
D)  a and b 
E)  b and c 
A)  short-term goals. 
B)  intermediate-term goals. 
C)  long-term goals. 
D)  a and b 
E)  b and c

Question 10

The three key groups in the economic environment are:

Accepted Answer

A)  government,regulation,and business. 
B)  government,consultants,and business. 
C)  consumers,economists,and business. 
D)  consumers,business,and managers. 
E)  government,consumers,and business. 
A)  government,regulation,and business. 
B)  government,consultants,and business. 
C)  consumers,economists,and business. 
D)  consumers,business,and managers. 
E)  government,consumers,and business.

Question 11

Current consumption affects future consumption.

Accepted Answer

A) True 
 B)False

Question 12

The consumer price index (CPI)is the amount of goods and services each dollar buys at a given time.

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.
-As the rate of inflation increases,the purchasing power of your dollars will [increase | decrease].

Accepted Answer

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

Question 14

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

Accepted Answer

A)  recession 
B)  depression 
C)  hyperdeflation 
D)  business trough 
E)  bubble 
A)  recession 
B)  depression 
C)  hyperdeflation 
D)  business trough 
E)  bubble

Question 15

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 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 best way to achieve your financial objectives is to [save every extra dollar you can | develop a sound financial plan].

Accepted Answer

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

Question 17

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 18

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

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.
-Most people graduate from college with [no | some] debts.

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.
-Financial planning [does | does not] guarantee a sound financial future.

Accepted Answer

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

Your personal value system will shape your attitude toward money and wealth accumulation.

A primary determinant of your quality of life 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. -[Utility | Propensity to consume] refers to the satisfaction you receive from buying certain items.

The four stages of an economic cycle would not include:

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

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

_____ tends to increase and then decrease over the life cycle.

When setting financial goals,one should typically start by setting:

The three key groups in the economic environment are:

Current consumption affects future consumption.

The consumer price index (CPI)is the amount of goods and services each dollar buys at a given 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. -As the rate of inflation increases,the purchasing power of your dollars will [increase | decrease].

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

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

Professional financial planners:

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

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. -Most people graduate from college with [no | some] debts.

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.

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

Your personal value system will shape your attitude toward money and wealth accumulation.

A primary determinant of your quality of life 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. -[Utility | Propensity to consume] refers to the satisfaction you receive from buying certain items.

The four stages of an economic cycle would not include:

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

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

_____ tends to increase and then decrease over the life cycle.

When setting financial goals,one should typically start by setting:

The three key groups in the economic environment are:

Current consumption affects future consumption.

The consumer price index (CPI)is the amount of goods and services each dollar buys at a given 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. -As the rate of inflation increases,the purchasing power of your dollars will [increase | decrease].

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

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

Professional financial planners:

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

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. -Most people graduate from college with [no | some] debts.

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.

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