Exam 1: Understanding the Financial Planning Process

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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 Federal Reserve's actions after the financial crisis of 2008 and 2009 resulted in [reduced interest rates | higher interest rates].

(Short Answer)
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For most people working in large firms,employee benefits are an important part of their financial planning.

(True/False)
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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. -[Vacations | Education] would be considered a necessity of life.

(Short Answer)
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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 families find it [easy | difficult] to discuss money matters.

(Short Answer)
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Investments are distinguished from savings on the basis of:

(Multiple Choice)
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The amount of goods and services each dollar buys at a given point in time is:

(Multiple Choice)
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How long you invest is not nearly as important as the rate of interest you can earn on your investments.

(True/False)
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The longer you wait to begin retirement planning,the less you will likely have in your retirement fund.

(True/False)
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A _____ is a designation earned by financial planners after completing required courses of study.

(Multiple Choice)
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An economic contraction usually begins after a trough is reached.

(True/False)
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The individual consumer is:

(Multiple Choice)
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A strong economy leads to higher level of employment.

(True/False)
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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.

(Short Answer)
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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. -After reaching adulthood,your financial goals will [stabilize | continue to change].

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Businesses provide:

(Multiple Choice)
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Short-term goals include things one wants to achieve in a year or less.

(True/False)
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