Question 1

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

Accepted Answer

A)  convolution 
B)  expansion 
C)  contraction 
D)  recovery 
E)  prosperity 
A)  convolution 
B)  expansion 
C)  contraction 
D)  recovery 
E)  prosperity

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.
-The average [self-employed | retired] household has higher income.

Accepted Answer

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

Question 3

A person making $35,000 and spending $30,800 has an average propensity to consume of 80%.

Accepted Answer

A) True 
 B)False

Question 4

Your house is an example of a tangible asset.

Accepted Answer

A) True 
 B)False

Question 5

The main reason to do personal financial planning is to:

Accepted Answer

A)  minimize overall costs. 
B)  minimize overall utility. 
C)  assign monetary value to consumption. 
D)  maximize overall utility. 
E)  stabilize overall utility. 
A)  minimize overall costs. 
B)  minimize overall utility. 
C)  assign monetary value to consumption. 
D)  maximize overall utility. 
E)  stabilize overall utility.

Question 6

Accumulating wealth for later years is called estate planning.

Accepted Answer

A) True 
 B)False

Question 7

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

Accepted Answer

A) True 
 B)False

Question 8

Inflation refers to:

Accepted Answer

A)  rising prices. 
B)  declining interest rates. 
C)  the opposite of wealth. 
D)  the opposite of stagflation. 
E)  declining prices. 
A)  rising prices. 
B)  declining interest rates. 
C)  the opposite of wealth. 
D)  the opposite of stagflation. 
E)  declining prices.

Question 9

Financial assets include investments such as stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 10

About 20% of Americans say retirement planning is their most pressing financial concern.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The need for financial planning declines as your income increases.

Accepted Answer

A) True 
 B)False

Question 13

Your average propensity to consume is the percentage of each dollar of income,on average,that is spent for current needs rather than savings.

Accepted Answer

A) True 
 B)False

Question 14

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 increase until age [54 | 64] then income starts decreasing.

Accepted Answer

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

Question 15

Money can be an emotional factor that may affect a person's financial plans.

Accepted Answer

A) True 
 B)False

Question 16

Estate planning involves:

Accepted Answer

A)  considering how your wealth can be most effectively passed on to heirs. 
B)  payment of all back taxes. 
C)  dissolution of all privately held corporations. 
D)  valuation and auctioning of your valuables. 
E)  planning retirements. 
A)  considering how your wealth can be most effectively passed on to heirs. 
B)  payment of all back taxes. 
C)  dissolution of all privately held corporations. 
D)  valuation and auctioning of your valuables. 
E)  planning retirements.

Question 17

Employee benefits may include:

Accepted Answer

A)  retirement plans. 
B)  health insurance. 
C)  employee discounts. 
D)  tuition reimbursements. 
E)  all of the above 
A)  retirement plans. 
B)  health insurance. 
C)  employee discounts. 
D)  tuition reimbursements. 
E)  all of the above

Question 18

Your income is directly related to your:

Accepted Answer

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

Question 19

Typically,people with the lowest incomes tend to be:

Accepted Answer

A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless. 
A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless.

Question 20

A successful financial plan will be based on a person's goals.

Accepted Answer

A) True 
 B)False

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

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 [self-employed | retired] household has higher income.

A person making $35,000 and spending $30,800 has an average propensity to consume of 80%.

Your house is an example of a tangible asset.

The main reason to do personal financial planning is to:

Accumulating wealth for later years is called estate planning.

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

Inflation refers to:

Financial assets include investments such as stocks and bonds.

About 20% of Americans say retirement planning is their most pressing financial concern.

A strong economy leads to:

The need for financial planning declines as your income increases.

Your average propensity to consume is the percentage of each dollar of income,on average,that is spent for current needs rather than savings.

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 increase until age [54 | 64] then income starts decreasing.

Money can be an emotional factor that may affect a person's financial plans.

Estate planning involves:

Employee benefits may include:

Your income is directly related to your:

Typically,people with the lowest incomes tend to be:

A successful financial plan will be based on a person's goals.

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

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

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 [self-employed | retired] household has higher income.

A person making $35,000 and spending $30,800 has an average propensity to consume of 80%.

Your house is an example of a tangible asset.

The main reason to do personal financial planning is to:

Accumulating wealth for later years is called estate planning.

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

Inflation refers to:

Financial assets include investments such as stocks and bonds.

About 20% of Americans say retirement planning is their most pressing financial concern.

A strong economy leads to:

The need for financial planning declines as your income increases.

Your average propensity to consume is the percentage of each dollar of income,on average,that is spent for current needs rather than savings.

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 increase until age [54 | 64] then income starts decreasing.

Money can be an emotional factor that may affect a person's financial plans.

Estate planning involves:

Employee benefits may include:

Your income is directly related to your:

Typically,people with the lowest incomes tend to be:

A successful financial plan will be based on a person's goals.

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