Question 1

This course/text will assist you in accomplishing six financial objectives.What are they?

Accepted Answer

1.Manage the unplanned.
2.Accumulate wealth for special expenses.
3.Realistically save for retirement.
4.Cover your assets.
5.Invest intelligently.
6.Minimize your payments to Uncle Sam.

Question 2

Why do you need to have liquidity?

Accepted Answer

Liquidity allows you to access your money with ease,when you need it.Life happens;at any moment,you could develop an illness,lose a job,or wreck your car.When unforeseen circumstances occur,you need to have access to enough money to make it through.

Question 3

One purpose of financial planning is to help you legally reduce the amount of taxes you have to pay on your earnings.

Accepted Answer

A) True 
 B)False  True

Question 4

If liquid funds are not available,an unexpected need,such as a job loss or injury may force you to

Accepted Answer

A) cash in a longer-term investment. 
B) borrow money fast. 
C) take on unexpected debt repayments. 
D) all of the above. 
A) cash in a longer-term investment. 
B) borrow money fast. 
C) take on unexpected debt repayments. 
D) all of the above.

Question 5

A financial plan is only concerned with your future earnings and expenses.An examination of your current financial situation is not so important.

Accepted Answer

A) True 
 B)False

Question 6

In order for your financial plan to be realistic and attainable it needs to be based upon your

Accepted Answer

A) budget. 
B) income level. 
C) number of tax deductions,exemption,exclusions,and credits. 
D) balance sheet. 
E) none of the above. 
A) budget. 
B) income level. 
C) number of tax deductions,exemption,exclusions,and credits. 
D) balance sheet. 
E) none of the above.

Question 7

Charlie is sixty-four years old and is looking forward to his retirement next year.He currently has all of his 401(k)retirement money invested in the stock market.What financial principle from Chapter 1 does he need to understand better?

Accepted Answer

A) Nothing happens without a plan. 
B) Knowledge is the best protection. 
C) Stuff happens,the importance of liquidity. 
D) Risk and return go hand in hand. 
A) Nothing happens without a plan. 
B) Knowledge is the best protection. 
C) Stuff happens,the importance of liquidity. 
D) Risk and return go hand in hand.

Question 8

The economic downturn that began in 2008 resulted in negative consequences,including

Accepted Answer

A) a dramatic increase in unemployment rates. 
B) disrupted financial markets. 
C) difficulty for consumers to borrow money from lending institutions. 
D) all consumers increased their wealth. 
E) only A,B,and C are correct. 
A) a dramatic increase in unemployment rates. 
B) disrupted financial markets. 
C) difficulty for consumers to borrow money from lending institutions. 
D) all consumers increased their wealth. 
E) only A,B,and C are correct.

Question 9

While reviewing your current financial plan,you discover that you most likely won't achieve your long term financial goals.What should you do now?

Accepted Answer

A) Look at increasing your income. 
B) Look at cutting back on your expenses. 
C) Look at revising your goals. 
D) All of these would be realistic things to do. 
A) Look at increasing your income. 
B) Look at cutting back on your expenses. 
C) Look at revising your goals. 
D) All of these would be realistic things to do.

Question 10

What elements are included in a solid financial plan?

Accepted Answer

A solid personal financial pla

Question 11

An economic condition in which rising prices reduce the purchasing power of money is termed

Accepted Answer

A) deflation. 
B) inflation. 
C) stagflation. 
D) cash erosion. 
E) none of the above. 
A) deflation. 
B) inflation. 
C) stagflation. 
D) cash erosion. 
E) none of the above.

Question 12

Explain the essence and importance of each of the stages in the financial life cycle.

Accepted Answer

The overall financial life cycle allows

Question 13

What aspect of financial planning might you discuss with a friend who buys fancy coffee drinks twice a day,visits the mall at least once a week for recreational shopping,and prefers impulse buying to carefully researched purchasing?

Accepted Answer

A) Just do it. 
B) Nothing happens without a plan. 
C) Mind games,financial personality,and your money 
D) Waste not,want not-smart spending matters. 
A) Just do it. 
B) Nothing happens without a plan. 
C) Mind games,financial personality,and your money 
D) Waste not,want not-smart spending matters.

Question 14

Which of the following typically occur(s)during stage 1 of the financial life cycle?

Accepted Answer

A) Initial goal setting 
B) Insurance planning 
C) Saving for goals 
D) Home purchase 
E) All the above 
A) Initial goal setting 
B) Insurance planning 
C) Saving for goals 
D) Home purchase 
E) All the above

Question 15

Suppose that you are a 60-year-old business owner.What stage of the financial life cycle are you currently in?

Accepted Answer

A) Stage 1: wealth accumulation 
B) Stage 2: the golden years 
C) Stage 3: the retirement years 
D) Stage 4: the formative years 
A) Stage 1: wealth accumulation 
B) Stage 2: the golden years 
C) Stage 3: the retirement years 
D) Stage 4: the formative years

Question 16

Which step has you to identify what you are saving and what you need to save?

Accepted Answer

A) Step 1 
B) Step 2 
C) Step 3 
D) Step 4 
A) Step 1 
B) Step 2 
C) Step 3 
D) Step 4

Question 17

Suppose that you just completed your first year of college with $12,000 in loans and plan to borrow the maximum each year from now until graduation.You have never accounted for the way you spend your money,do not have a budget,and want to insure that you will be able to repay your loans after college.What is the most important thing you can do right now?

Accepted Answer

A) Talk to your parents about an allowance. 
B) Visit your career counselor at school. 
C) Ask a friend who took the Personal Finance course for advice. 
D) Immediately begin to develop a personal financial plan. 
A) Talk to your parents about an allowance. 
B) Visit your career counselor at school. 
C) Ask a friend who took the Personal Finance course for advice. 
D) Immediately begin to develop a personal financial plan.

Question 18

Elaborate upon the four common concerns that should guide all financial plans.

Accepted Answer

Your financial plan should be flexible e

Question 19

Evaluating your financial health consists of

Accepted Answer

A) preparing a personal balance sheet. 
B) determining what you are worth. 
C) preparing a personal income statement. 
D) determining where your money comes from and where it goes. 
E) all of the above. 
A) preparing a personal balance sheet. 
B) determining what you are worth. 
C) preparing a personal income statement. 
D) determining where your money comes from and where it goes. 
E) all of the above.

Question 20

________ is the process of identifying a job that you feel is important and that will lead to the kind of lifestyle you desire.

Accepted Answer

A) Financial planning 
B) Career planning 
C) Goal planning 
D) Retirement planning 
A) Financial planning 
B) Career planning 
C) Goal planning 
D) Retirement planning

This course/text will assist you in accomplishing six financial objectives.What are they?

Why do you need to have liquidity?

One purpose of financial planning is to help you legally reduce the amount of taxes you have to pay on your earnings.

If liquid funds are not available,an unexpected need,such as a job loss or injury may force you to

A financial plan is only concerned with your future earnings and expenses.An examination of your current financial situation is not so important.

In order for your financial plan to be realistic and attainable it needs to be based upon your

Charlie is sixty-four years old and is looking forward to his retirement next year.He currently has all of his 401(k)retirement money invested in the stock market.What financial principle from Chapter 1 does he need to understand better?

The economic downturn that began in 2008 resulted in negative consequences,including

While reviewing your current financial plan,you discover that you most likely won't achieve your long term financial goals.What should you do now?

What elements are included in a solid financial plan?

An economic condition in which rising prices reduce the purchasing power of money is termed

Explain the essence and importance of each of the stages in the financial life cycle.

What aspect of financial planning might you discuss with a friend who buys fancy coffee drinks twice a day,visits the mall at least once a week for recreational shopping,and prefers impulse buying to carefully researched purchasing?

Which of the following typically occur(s)during stage 1 of the financial life cycle?

Suppose that you are a 60-year-old business owner.What stage of the financial life cycle are you currently in?

Which step has you to identify what you are saving and what you need to save?

Elaborate upon the four common concerns that should guide all financial plans.

Evaluating your financial health consists of

________ is the process of identifying a job that you feel is important and that will lead to the kind of lifestyle you desire.

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 1: The Financial Planning Process

This course/text will assist you in accomplishing six financial objectives.What are they?

Why do you need to have liquidity?

One purpose of financial planning is to help you legally reduce the amount of taxes you have to pay on your earnings.

If liquid funds are not available,an unexpected need,such as a job loss or injury may force you to

A financial plan is only concerned with your future earnings and expenses.An examination of your current financial situation is not so important.

In order for your financial plan to be realistic and attainable it needs to be based upon your

Charlie is sixty-four years old and is looking forward to his retirement next year.He currently has all of his 401(k)retirement money invested in the stock market.What financial principle from Chapter 1 does he need to understand better?

The economic downturn that began in 2008 resulted in negative consequences,including

While reviewing your current financial plan,you discover that you most likely won't achieve your long term financial goals.What should you do now?

What elements are included in a solid financial plan?

An economic condition in which rising prices reduce the purchasing power of money is termed

Explain the essence and importance of each of the stages in the financial life cycle.

What aspect of financial planning might you discuss with a friend who buys fancy coffee drinks twice a day,visits the mall at least once a week for recreational shopping,and prefers impulse buying to carefully researched purchasing?

Which of the following typically occur(s)during stage 1 of the financial life cycle?

Suppose that you are a 60-year-old business owner.What stage of the financial life cycle are you currently in?

Which step has you to identify what you are saving and what you need to save?

Elaborate upon the four common concerns that should guide all financial plans.

Evaluating your financial health consists of

________ is the process of identifying a job that you feel is important and that will lead to the kind of lifestyle you desire.

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters