Question 1

After retirement starts,which aspect of financial planning becomes imperative?

Accepted Answer

A) Maintaining a regular pattern of saving 
B) Long-term borrowing commitments 
C) Estate planning 
D) Effects of inflation 
A) Maintaining a regular pattern of saving 
B) Long-term borrowing commitments 
C) Estate planning 
D) Effects of inflation

Question 2

What elements are found in an effective financial plan?

Accepted Answer

A) Flexibility to allow for changes in your situation 
B) Sufficient liquidity to meet unexpected needs 
C) Insurance protection from catastrophic events 
D) Helps you legally reduce the amount of taxes you owe 
E) All of the above 
A) Flexibility to allow for changes in your situation 
B) Sufficient liquidity to meet unexpected needs 
C) Insurance protection from catastrophic events 
D) Helps you legally reduce the amount of taxes you owe 
E) All of the above

Question 3

What percent of people age 65 and older in the United States are financially dependant on relatives?

Accepted Answer

A) 50% 
B) 75% 
C) 45% 
D) 33% 
A) 50% 
B) 75% 
C) 45% 
D) 33%

Question 4

According to the Keown book,you might begin to think about estate planning during this stage of the financial life cycle.

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 5

The major reason to make a financial plan is to

Accepted Answer

A) account for your spending. 
B) see where you are overspending or underspending. 
C) achieve your financial goals. 
D) allow for a surplus. 
E) serve as a tax planning guide. 
A) account for your spending. 
B) see where you are overspending or underspending. 
C) achieve your financial goals. 
D) allow for a surplus. 
E) serve as a tax planning guide.

Question 6

Suppose you have just retired,have accumulated many luxury goods over the years,still owe a mortgage on your home,still have unpaid travel expenses on your credit cards,and have helped your adult children financially.Your spouse has recently passed away,and you miss his/her contribution to the household income.Which step in the personal financial planning process have you neglected?

Accepted Answer

A) Develop your financial health. 
B) Define your financial goals. 
C) Develop a plan of action. 
D) Implement your plan. 
E) Review your progress,reevaluate,and revise your plan. 
A) Develop your financial health. 
B) Define your financial goals. 
C) Develop a plan of action. 
D) Implement your plan. 
E) Review your progress,reevaluate,and revise your plan.

Question 7

Differentiate between short-term,intermediate,and long-term goals.Give examples.

Accepted Answer

Short-term goals can be accomplished wit

Question 8

One of the most important factors to remember when hunting for your first job is to

Accepted Answer

A) seize every opportunity. 
B) wait patiently. 
C) start early. 
D) procrastinate. 
A) seize every opportunity. 
B) wait patiently. 
C) start early. 
D) procrastinate.

Question 9

When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid.

Accepted Answer

A) True 
 B)False

Question 10

Describe the five steps in the personal financial planning process.

Accepted Answer

Step 1: Evaluate your financial health b

Question 11

Salaries vary for individuals working in similar jobs for different companies,but one thing is clear: the more specialized skills and training a job requires,the higher the job tends to pay.

Accepted Answer

A) True 
 B)False

Question 12

The concept of diversification is illustrated by the old saying

Accepted Answer

A) "Sell eggs high and buy them low." 
B) "Don't put all your eggs in one basket." 
C) "Keep all your eggs in one basket." 
D) "Several baskets of eggs are better than one." 
A) "Sell eggs high and buy them low." 
B) "Don't put all your eggs in one basket." 
C) "Keep all your eggs in one basket." 
D) "Several baskets of eggs are better than one."

Question 13

A short-term goal might take from one to 10 years to accomplish.

Accepted Answer

A) True 
 B)False

Question 14

Diversification allows you to reduce risk.

Accepted Answer

A) True 
 B)False

Question 15

Why is it important to conduct an effective self-assessment?

Accepted Answer

Conducting an effective self-assessment

Question 16

Maiko lost her job and she was forced to sell a rental property because she did not have other funds (liquid,emergency,etc)available to meet her financial obligations.What financial principle best applies to this situation?

Accepted Answer

A) The time value of money 
B) Waste not,want not-smart spending matters. 
C) Mind games,financial personality,and your money 
D) Stuff happens,the importance of liquidity. 
A) The time value of money 
B) Waste not,want not-smart spending matters. 
C) Mind games,financial personality,and your money 
D) Stuff happens,the importance of liquidity.

Question 17

A solid understanding of personal finance will

Accepted Answer

A) enable you to protect yourself from an incompetent investment advisor. 
B) allow you to take advantage of changes in the economy. 
C) give you the ability to make intelligent investments. 
D) help you understand the importance of planning for your financial future. 
E) all of the above. 
A) enable you to protect yourself from an incompetent investment advisor. 
B) allow you to take advantage of changes in the economy. 
C) give you the ability to make intelligent investments. 
D) help you understand the importance of planning for your financial future. 
E) all of the above.

Question 18

Probably the most important determinant of your future earnings will be

Accepted Answer

A) your highest level of education obtained. 
B) the size of the company where you will work. 
C) your seniority with your company. 
D) joining a labor union. 
A) your highest level of education obtained. 
B) the size of the company where you will work. 
C) your seniority with your company. 
D) joining a labor union.

Question 19

Today,most Americans over the age of 65 have adequate savings and income available to them during retirement.

Accepted Answer

A) True 
 B)False

Question 20

Suppose that you are a 21-year-old college student.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 
E) Stage 5: the educational years 
A) Stage 1: wealth accumulation 
B) Stage 2: the golden years 
C) Stage 3: the retirement years 
D) Stage 4: the formative years 
E) Stage 5: the educational years

After retirement starts,which aspect of financial planning becomes imperative?

What elements are found in an effective financial plan?

What percent of people age 65 and older in the United States are financially dependant on relatives?

According to the Keown book,you might begin to think about estate planning during this stage of the financial life cycle.

The major reason to make a financial plan is to

Differentiate between short-term,intermediate,and long-term goals.Give examples.

One of the most important factors to remember when hunting for your first job is to

When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid.

Describe the five steps in the personal financial planning process.

Salaries vary for individuals working in similar jobs for different companies,but one thing is clear: the more specialized skills and training a job requires,the higher the job tends to pay.

The concept of diversification is illustrated by the old saying

A short-term goal might take from one to 10 years to accomplish.

Diversification allows you to reduce risk.

Why is it important to conduct an effective self-assessment?

Maiko lost her job and she was forced to sell a rental property because she did not have other funds (liquid,emergency,etc)available to meet her financial obligations.What financial principle best applies to this situation?

A solid understanding of personal finance will

Probably the most important determinant of your future earnings will be

Today,most Americans over the age of 65 have adequate savings and income available to them during retirement.

Suppose that you are a 21-year-old college student.What stage of the financial life cycle are you currently in?

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

After retirement starts,which aspect of financial planning becomes imperative?

What elements are found in an effective financial plan?

What percent of people age 65 and older in the United States are financially dependant on relatives?

According to the Keown book,you might begin to think about estate planning during this stage of the financial life cycle.

The major reason to make a financial plan is to

Differentiate between short-term,intermediate,and long-term goals.Give examples.

One of the most important factors to remember when hunting for your first job is to

When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid.

Describe the five steps in the personal financial planning process.

Salaries vary for individuals working in similar jobs for different companies,but one thing is clear: the more specialized skills and training a job requires,the higher the job tends to pay.

The concept of diversification is illustrated by the old saying

A short-term goal might take from one to 10 years to accomplish.

Diversification allows you to reduce risk.

Why is it important to conduct an effective self-assessment?

Maiko lost her job and she was forced to sell a rental property because she did not have other funds (liquid,emergency,etc)available to meet her financial obligations.What financial principle best applies to this situation?

A solid understanding of personal finance will

Probably the most important determinant of your future earnings will be

Today,most Americans over the age of 65 have adequate savings and income available to them during retirement.

Suppose that you are a 21-year-old college student.What stage of the financial life cycle are you currently in?

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