Question 1

Insurance provides a way to make money on unfortunate events.

Accepted Answer

A) True 
 B)False

Question 2

Spending for your child's private-school education is an example of deferred consumption.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Financial planning can help us to:

Accepted Answer

A)  control inflation. 
B)  spend wisely. 
C)  control unemployment rates. 
D)  a and b 
E)  a,b,and c 
A)  control inflation. 
B)  spend wisely. 
C)  control unemployment rates. 
D)  a and b 
E)  a,b,and c

Question 5

Inflation means price levels have declined.

Accepted Answer

A) True 
 B)False

Question 6

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

Accepted Answer

A)  16.7% 
B)  25.5% 
C)  75.7% 
D)  83.3% 
E)  95.5% 
A)  16.7% 
B)  25.5% 
C)  75.7% 
D)  83.3% 
E)  95.5%

Question 7

Current consumption is inversely related to saving for the future.

Accepted Answer

A) True 
 B)False

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 financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

Accepted Answer

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

Question 9

Government places controls on the personal financial environment by the use of:

Accepted Answer

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

Question 10

A good financial plan completed when one is in ones 30s will typically last a lifetime.

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.
-It is [fairly simple | impossible] to find a financial plan that will work for everyone.

Accepted Answer

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

Question 12

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 education | age] will usually have no effect on your earning capacity.

Accepted Answer

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

Question 13

Financial planning can improve your standard of living.

Accepted Answer

A) True 
 B)False

Question 14

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

Accepted Answer

A) True 
 B)False

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.
-Following an economic trough,the economy will often enter a period of [expansion | contraction].

Accepted Answer

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

Question 16

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 17

Employee benefits may include:

Accepted Answer

A)  health insurance. 
B)  disability insurance. 
C)  life insurance. 
D)  a and b 
E)  a,b,and c 
A)  health insurance. 
B)  disability insurance. 
C)  life insurance. 
D)  a and b 
E)  a,b,and c

Question 18

It is possible to draw up one financial plan that will work for most people.

Accepted Answer

A) True 
 B)False

Question 19

The term most closely associated with quality of life is:

Accepted Answer

A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money. 
A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money.

Question 20

Financial planning is a continuing,life-long process.

Accepted Answer

A) True 
 B)False

Insurance provides a way to make money on unfortunate events.

Spending for your child's private-school education is an example of deferred consumption.

Personal financial management is important because it:

Financial planning can help us to:

Inflation means price levels have declined.

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

Current consumption is inversely related to saving for the future.

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 financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

Government places controls on the personal financial environment by the use of:

A good financial plan completed when one is in ones 30s will typically last a lifetime.

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. -It is [fairly simple | impossible] to find a financial plan that will work for everyone.

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 education | age] will usually have no effect on your earning capacity.

Financial planning can improve your standard of living.

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

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. -Following an economic trough,the economy will often enter a period of [expansion | contraction].

The last step in the financial planning process is to:

Employee benefits may include:

It is possible to draw up one financial plan that will work for most people.

The term most closely associated with quality of life is:

Financial planning is a continuing,life-long process.

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

Insurance provides a way to make money on unfortunate events.

Spending for your child's private-school education is an example of deferred consumption.

Personal financial management is important because it:

Financial planning can help us to:

Inflation means price levels have declined.

Becky graduated with a master degree in Personal Financial Planning.After working two years in a small financial planning firm,Becky earns $60,000 annually and saves $10,000 a year.What is her average propensity to consume?

Current consumption is inversely related to saving for the future.

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 financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

Government places controls on the personal financial environment by the use of:

A good financial plan completed when one is in ones 30s will typically last a lifetime.

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. -It is [fairly simple | impossible] to find a financial plan that will work for everyone.

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 education | age] will usually have no effect on your earning capacity.

Financial planning can improve your standard of living.

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

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. -Following an economic trough,the economy will often enter a period of [expansion | contraction].

The last step in the financial planning process is to:

Employee benefits may include:

It is possible to draw up one financial plan that will work for most people.

The term most closely associated with quality of life is:

Financial planning is a continuing,life-long process.

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