Question 1

Financial planning might not help you earn more,but it can help you use the money you do earn to achieve your

Accepted Answer

A) life's purpose. 
B) dreams. 
C) financial goals. 
D) desired lifestyle. 
A) life's purpose. 
B) dreams. 
C) financial goals. 
D) desired lifestyle.

Question 2

Leticia is twenty-two years old and she has all of her savings in a Certificate of Deposit (CD)at the bank that currently pays an annual 1.5 percent yield.The account is protected by the FDIC so it is virtually risk free.She hopes to use her savings for a down payment on a new house in ten years.Inflation in house prices in her area has averaged 4 percent per year.What financial principle does she need to pay better attention to?

Accepted Answer

A) Nothing happens without a plan. 
B) Waste not,want not,smart spending matters. 
C) Risk and return go hand in hand. 
D) All of the above are correct. 
A) Nothing happens without a plan. 
B) Waste not,want not,smart spending matters. 
C) Risk and return go hand in hand. 
D) All of the above are correct.

Question 3

Which statement is true about managing personal finances?

Accepted Answer

A) The ability to manage finances is a skill with which you are born. 
B) Personal finance courses are commonly offered in high school. 
C) Financial difficulties can be a major cause of marital problems. 
D) Personal financial management is not a skill worth learning. 
A) The ability to manage finances is a skill with which you are born. 
B) Personal finance courses are commonly offered in high school. 
C) Financial difficulties can be a major cause of marital problems. 
D) Personal financial management is not a skill worth learning.

Question 4

List some way to increase your value as an employee.

Accepted Answer

Do your best work.
Project the right ima

Question 5

Jessica is very proud of herself for having $5,000 in her savings account that pays 4 percent interest.She currently has a balance of $2,300 on her credit card account that charges 21 percent interest.Jessica thinks she is making a wise financial decision by keeping her money in her savings account instead of paying off her credit card balance.What financial principle from Chapter 1 would you use to give her good advice?

Accepted Answer

A) Mind games,financial personality,and your money 
B) The time value of money 
C) Taxes affect personal financial decisions. 
D) Both A and B 
A) Mind games,financial personality,and your money 
B) The time value of money 
C) Taxes affect personal financial decisions. 
D) Both A and B

Question 6

The principle stating that a person can expect to earn additional return for increasing his or her investment risk is the ________ principle.

Accepted Answer

A) "risk and return go hand in hand" 
B) "mind games,financial personality,and your money" 
C) "nothing happens without a plan" 
D) "the best protection is knowledge" 
A) "risk and return go hand in hand" 
B) "mind games,financial personality,and your money" 
C) "nothing happens without a plan" 
D) "the best protection is knowledge"

Question 7

Which of the following falls under the category of mind games,financial personality,and your money?

Accepted Answer

A) The sunk cost effect 
B) Mental accounting 
C) Viewing your tax refund as "mad money" 
D) All of the above 
A) The sunk cost effect 
B) Mental accounting 
C) Viewing your tax refund as "mad money" 
D) All of the above

Question 8

Financial planning is an ongoing process.As your financial situation and position in life change,the plan changes.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following adheres to the financial principle "just do it?"

Accepted Answer

A) The amount you can spend is what's left after you put aside your savings. 
B) Pay yourself last. 
C) It's much easier to save than to spend. 
D) All of the above 
A) The amount you can spend is what's left after you put aside your savings. 
B) Pay yourself last. 
C) It's much easier to save than to spend. 
D) All of the above

Question 10

Which of the following statements applies to obtaining an undergraduate college degree?

Accepted Answer

A) They are expensive and rarely pay off in increased earnings. 
B) There is no relationship between personal wealth and earning a college degree. 
C) It may be the single best investment you will ever make. 
D) All of the above. 
A) They are expensive and rarely pay off in increased earnings. 
B) There is no relationship between personal wealth and earning a college degree. 
C) It may be the single best investment you will ever make. 
D) All of the above.

Question 11

Why do individuals need to plan for their finances?

Accepted Answer

Without financial planning individuals w

Question 12

Without recognizing ________ it is impossible to understand compound interest,which allows investments to grow over time.

Accepted Answer

A) that taxes affect personal finance decisions 
B) the time value of money 
C) the importance of liquidity 
D) that risk and return go hand in hand 
A) that taxes affect personal finance decisions 
B) the time value of money 
C) the importance of liquidity 
D) that risk and return go hand in hand

Question 13

A well-educated and trained employee is virtually guaranteed job security by today's employers.Therefore,he or she doesn't need to worry about keeping his or her skills current.

Accepted Answer

A) True 
 B)False

Question 14

All else being equal,an increase in inflation will cause investors to require a higher rate of return on an asset.

Accepted Answer

A) True 
 B)False

Question 15

Which basic step to personal financial planning should be considered when examining your current financial situation?

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 16

The economic downturn that began in 2008 demonstrated that many Americans have sufficient emergency funds.

Accepted Answer

A) True 
 B)False

Question 17

Proper financial planning can help you use your current income to achieve your long term financial goals.

Accepted Answer

A) True 
 B)False

Question 18

Which basic step to personal financial planning should be considered when establishing your personal financial goals?

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 19

Personal financial planning can help you to

Accepted Answer

A) deal with unplanned health issues. 
B) minimize your tax payments to Uncle Sam. 
C) minimize your chances of personal bankruptcy. 
D) have enough money for a comfortable retirement. 
E) all of the above. 
A) deal with unplanned health issues. 
B) minimize your tax payments to Uncle Sam. 
C) minimize your chances of personal bankruptcy. 
D) have enough money for a comfortable retirement. 
E) all of the above.

Question 20

According to a recent recruiting survey,the most common mistake made by job interviewees is

Accepted Answer

A) shaking hands softly. 
B) talking too much. 
C) dressing inappropriately. 
D) arriving late to an interview. 
A) shaking hands softly. 
B) talking too much. 
C) dressing inappropriately. 
D) arriving late to an interview.

Financial planning might not help you earn more,but it can help you use the money you do earn to achieve your

Which statement is true about managing personal finances?

List some way to increase your value as an employee.

The principle stating that a person can expect to earn additional return for increasing his or her investment risk is the ________ principle.

Which of the following falls under the category of mind games,financial personality,and your money?

Financial planning is an ongoing process.As your financial situation and position in life change,the plan changes.

Which of the following adheres to the financial principle "just do it?"

Which of the following statements applies to obtaining an undergraduate college degree?

Why do individuals need to plan for their finances?

Without recognizing ________ it is impossible to understand compound interest,which allows investments to grow over time.

A well-educated and trained employee is virtually guaranteed job security by today's employers.Therefore,he or she doesn't need to worry about keeping his or her skills current.

All else being equal,an increase in inflation will cause investors to require a higher rate of return on an asset.

Which basic step to personal financial planning should be considered when examining your current financial situation?

The economic downturn that began in 2008 demonstrated that many Americans have sufficient emergency funds.

Proper financial planning can help you use your current income to achieve your long term financial goals.

Which basic step to personal financial planning should be considered when establishing your personal financial goals?

Personal financial planning can help you to

According to a recent recruiting survey,the most common mistake made by job interviewees is

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

Financial planning might not help you earn more,but it can help you use the money you do earn to achieve your

Which statement is true about managing personal finances?

List some way to increase your value as an employee.

The principle stating that a person can expect to earn additional return for increasing his or her investment risk is the ________ principle.

Which of the following falls under the category of mind games,financial personality,and your money?

Financial planning is an ongoing process.As your financial situation and position in life change,the plan changes.

Which of the following adheres to the financial principle "just do it?"

Which of the following statements applies to obtaining an undergraduate college degree?

Why do individuals need to plan for their finances?

Without recognizing ________ it is impossible to understand compound interest,which allows investments to grow over time.

A well-educated and trained employee is virtually guaranteed job security by today's employers.Therefore,he or she doesn't need to worry about keeping his or her skills current.

All else being equal,an increase in inflation will cause investors to require a higher rate of return on an asset.

Which basic step to personal financial planning should be considered when examining your current financial situation?

The economic downturn that began in 2008 demonstrated that many Americans have sufficient emergency funds.

Proper financial planning can help you use your current income to achieve your long term financial goals.

Which basic step to personal financial planning should be considered when establishing your personal financial goals?

Personal financial planning can help you to

According to a recent recruiting survey,the most common mistake made by job interviewees is

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