Question 1

Which period of time is associated with the longest expansion in the U.S.economy between 1945 and 2001?

Accepted Answer

A) November 1973-March 1985 
B) July 1981-November 1994 
C) March 1991-March 2001 
D) Both a and b 
E) None of the above 
A) November 1973-March 1985 
B) July 1981-November 1994 
C) March 1991-March 2001 
D) Both a and b 
E) None of the above C

Question 2

If the current amount is $100,000,the inflation rate is 4% and the number of periods is 2,what is the real amount?

Accepted Answer

A) $74,545.34 
B) $92,455.62 
C) $104,567.32 
D) $88,455.32 
E) None of the above 
A) $74,545.34 
B) $92,455.62 
C) $104,567.32 
D) $88,455.32 
E) None of the above B

Question 3

Which of the following is not required for a contract to be negotiable?

Accepted Answer

A) Written 
B) Signed by maker 
C) An unconditional promise to pay an exact amount of money 
D) Paid to a specific person or to anyone presenting the contract 
E) All of the above are required 
A) Written 
B) Signed by maker 
C) An unconditional promise to pay an exact amount of money 
D) Paid to a specific person or to anyone presenting the contract 
E) All of the above are required E

Question 4

During which of the followings decades was the average inflation highest in the U.S.?

Accepted Answer

A) 1950-1959 
B) 1960-1969 
C) 1970-1979 
D) 1980-1989 
E) 1990-1999 
A) 1950-1959 
B) 1960-1969 
C) 1970-1979 
D) 1980-1989 
E) 1990-1999

Question 5

Which of the following is not an inflation factor?

Accepted Answer

A) Excess of supply for a good or goods as compared with the demand 
B) Increases in the cost of items needed to produce a good 
C) Lack of competition arising from few producers for that item and barriers to new companies entering the market 
D) An excess supply of money in the economy 
E) All of the above are inflation factors 
A) Excess of supply for a good or goods as compared with the demand 
B) Increases in the cost of items needed to produce a good 
C) Lack of competition arising from few producers for that item and barriers to new companies entering the market 
D) An excess supply of money in the economy 
E) All of the above are inflation factors

Question 6

The measure of overall U.S.economic activity produced by U.S.businesses is the:

Accepted Answer

A) Gross Domestic Product 
B) Gross National Product 
C) Net Domestic Product 
D) Net National Product 
E) None of the above 
A) Gross Domestic Product 
B) Gross National Product 
C) Net Domestic Product 
D) Net National Product 
E) None of the above

Question 7

Which of the following is not an action that the Federal Reserve can take to influence economic activity?

Accepted Answer

A) Open market operations 
B) Changes in the inflation rate 
C) Changes in the reserve ratio 
D) Moral suasion 
E) All of the above are actions that the Federal Reserve can take 
A) Open market operations 
B) Changes in the inflation rate 
C) Changes in the reserve ratio 
D) Moral suasion 
E) All of the above are actions that the Federal Reserve can take

Question 8

What is the goal of fiscal policy?

Accepted Answer

A) To increase economic fluctuations and have the GNP grow close to full employment 
B) To increase economic fluctuations and have the GDP grow close to the GNP 
C) To lessen economic fluctuations and have the GDP grow close to the GNP 
D) To lessen economic fluctuations and have the economy grow close to full employment 
E) None of the above 
A) To increase economic fluctuations and have the GNP grow close to full employment 
B) To increase economic fluctuations and have the GDP grow close to the GNP 
C) To lessen economic fluctuations and have the GDP grow close to the GNP 
D) To lessen economic fluctuations and have the economy grow close to full employment 
E) None of the above

Question 9

Which of the following categories of financial are the largest depository institutions in the U.S.?

Accepted Answer

A) Savings banks 
B) Savings and loans 
C) Commercial banks 
D) Insurance companies 
E) Credit unions 
A) Savings banks 
B) Savings and loans 
C) Commercial banks 
D) Insurance companies 
E) Credit unions

Question 10

An act of wrongdoing against a person or a business or their property for which compensation is sought is:

Accepted Answer

A) A tort 
B) Negligence 
C) Belligerence 
D) All of the above 
E) None of the above 
A) A tort 
B) Negligence 
C) Belligerence 
D) All of the above 
E) None of the above

Question 11

Which of the following financial institutions provide both deposits and loans?

Accepted Answer

A) Credit unions 
B) Trust companies 
C) Finance companies 
D) Both a and b 
E) All of the above 
A) Credit unions 
B) Trust companies 
C) Finance companies 
D) Both a and b 
E) All of the above

Question 12

During which of the followings decades was the average real GDP growth highest in the U.S.?

Accepted Answer

A) 1950-1959 
B) 1960-1969 
C) 1970-1979 
D) 1980-1989 
E) 1990-1999 
A) 1950-1959 
B) 1960-1969 
C) 1970-1979 
D) 1980-1989 
E) 1990-1999

Question 13

What is a fiduciary?

Accepted Answer

A) An officer of the law. 
B) A trusted party who acts as an agent for another person. 
C) A lawyer designated by the courts. 
D) All of the above. 
E) None of the above. 
A) An officer of the law. 
B) A trusted party who acts as an agent for another person. 
C) A lawyer designated by the courts. 
D) All of the above. 
E) None of the above.

Question 14

Giving up something that has value in return for an act or promise is:

Accepted Answer

A) Compromise 
B) Consideration 
C) Contract 
D) Offer 
E) Acceptance 
A) Compromise 
B) Consideration 
C) Contract 
D) Offer 
E) Acceptance

Question 15

A grouping of individuals or businesses that share a common interest or goal and that generally finance an organization is:

Accepted Answer

A) A corporation 
B) An association 
C) A family limited partnership 
D) An individual proprietorship 
E) None of the above 
A) A corporation 
B) An association 
C) A family limited partnership 
D) An individual proprietorship 
E) None of the above

Question 16

The rate of inflation is equal to which of the following?

Accepted Answer

A) 100 x current price - price in previous periods x price in previous periods). 
B) 100 x price in previous periods - current price)/price in previous periods 
C) 100 x current price - price in previous periods)/price in previous periods 
D) 100 x price in previous periods - current price/price in previous periods) 
E) None of the above 
A) 100 x current price - price in previous periods x price in previous periods). 
B) 100 x price in previous periods - current price)/price in previous periods 
C) 100 x current price - price in previous periods)/price in previous periods 
D) 100 x price in previous periods - current price/price in previous periods) 
E) None of the above

Question 17

What is the purchasing power of $100,000 at an inflation rate of 10% over 20 years?

Accepted Answer

A) $62,092 
B) $38,554 
C) $100,000 
D) $14,864 
E) $98,039 
A) $62,092 
B) $38,554 
C) $100,000 
D) $14,864 
E) $98,039

Question 18

Which of the following is an advantage associated with increased government spending?

Accepted Answer

A) The government is relatively assured that the money will result in a change in economic output 
B) The government is relatively assured that the money will not result in a change in economic output 
C) Implementation is often delayed 
D) Implementation is rarely delayed 
E) None of the above 
A) The government is relatively assured that the money will result in a change in economic output 
B) The government is relatively assured that the money will not result in a change in economic output 
C) Implementation is often delayed 
D) Implementation is rarely delayed 
E) None of the above

Question 19

What is disinflation?

Accepted Answer

A) A period in which inflation is rising but at a rate of increase that is declining. 
B) A period in which the absolute level of prices declines. 
C) A period in which inflation is declining but at a rate of decline that is increasing. 
D) A period in which the absolute level of prices increases. 
E) None of the above. 
A) A period in which inflation is rising but at a rate of increase that is declining. 
B) A period in which the absolute level of prices declines. 
C) A period in which inflation is declining but at a rate of decline that is increasing. 
D) A period in which the absolute level of prices increases. 
E) None of the above.

Question 20

Which of the following is not an effect of inflation?

Accepted Answer

A) Redistribute wealth. 
B) Change economic behavior and bring about inefficient economic activity 
C) Result in action by the Federal Reserve to stop the inflationary spiral 
D) Increased uncertainty about the future 
E) All of the above are effects of inflation 
A) Redistribute wealth. 
B) Change economic behavior and bring about inefficient economic activity 
C) Result in action by the Federal Reserve to stop the inflationary spiral 
D) Increased uncertainty about the future 
E) All of the above are effects of inflation

Exam 21: Employee Benefits

Which period of time is associated with the longest expansion in the U.S.economy between 1945 and 2001?

If the current amount is $100,000,the inflation rate is 4% and the number of periods is 2,what is the real amount?

Which of the following is not required for a contract to be negotiable?

During which of the followings decades was the average inflation highest in the U.S.?

Which of the following is not an inflation factor?

The measure of overall U.S.economic activity produced by U.S.businesses is the:

Which of the following is not an action that the Federal Reserve can take to influence economic activity?

What is the goal of fiscal policy?

Which of the following categories of financial are the largest depository institutions in the U.S.?

An act of wrongdoing against a person or a business or their property for which compensation is sought is:

Which of the following financial institutions provide both deposits and loans?

During which of the followings decades was the average real GDP growth highest in the U.S.?

What is a fiduciary?

Giving up something that has value in return for an act or promise is:

A grouping of individuals or businesses that share a common interest or goal and that generally finance an organization is:

The rate of inflation is equal to which of the following?

What is the purchasing power of $100,000 at an inflation rate of 10% over 20 years?

Which of the following is an advantage associated with increased government spending?

What is disinflation?

Which of the following is not an effect of inflation?

Introduction to PFP

Time Value of Money

Beginning the Planning Process

Household Finance

Financial Statements Analysis

Cash Flow Planning

Debt

Non Financial Investments

Financial Investments

Risk Management

Other Insurance

Retirement Planning

Educational Planning

Tax Planning

Estate Planning

Stocks, Bonds and Mutual Funds

Background Topics

Capital Needs Analysis

Behavioral Financial Planning

Modern Investment Theory

Behavioral Finance-Applications

Comprehensive Financial Plan-Dan and Laura

Examining Financial Regulation and Ethics

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