Question 1

The changing cost of money when borrowing is referred to as ________ risk.

Accepted Answer

A) interest rate 
B) inflation 
C) income 
D) liquidity 
E) personal 
A) interest rate 
B) inflation 
C) income 
D) liquidity 
E) personal

Question 2

What are the six steps in the financial planning process?

Accepted Answer

The personal financial planning process

Question 3

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

Accepted Answer

The Rule of 72 helps determine

Question 4

Describe the S-M-A-R-T approach to developing financial goals.Give an example.

Accepted Answer

Financial Goals should be spec

Question 5

When prices are increasing at a rate of 12 percent,the cost of products would double in about how many years?

Accepted Answer

A) 24 years 
B) 18 years 
C) 12 years 
D) 6 years 
E) 3 years 
A) 24 years 
B) 18 years 
C) 12 years 
D) 6 years 
E) 3 years

Question 6

Sophia Martin's goal has been to travel around the world.She has now been traveling for six months and she has decided she is a little tired of living out of a suitcase.She has decided to go home,look for a part time job,and take shorter trips to locations around the world that appeal to her.Which step in the financial planning process does this scenario most likely demonstrate?

Accepted Answer

A) Developing her financial goals 
B) Identifying alternative courses of action 
C) Evaluating her alternatives 
D) Implementing her financial plan 
E) Reviewing and revising her financial plan 
A) Developing her financial goals 
B) Identifying alternative courses of action 
C) Evaluating her alternatives 
D) Implementing her financial plan 
E) Reviewing and revising her financial plan

Question 7

Determining your current financial situation is a part of which step in the financial planning process?

Accepted Answer

A) First 
B) Second 
C) Third 
D) Fourth 
E) Fifth 
A) First 
B) Second 
C) Third 
D) Fourth 
E) Fifth

Question 8

People are commonly overwhelmed by the many influences on personal financial decisions.What are the factors affecting personal financial planning?

Accepted Answer

Students answers will vary.Factors might

Question 9

The main responsibility of The Fed is to:

Accepted Answer

A) maintain an adequate supply of money. 
B) approve spending by Congress. 
C) set federal income tax rates. 
D) determine illegal business activities. 
E) maintain a balanced budget for the federal government. 
A) maintain an adequate supply of money. 
B) approve spending by Congress. 
C) set federal income tax rates. 
D) determine illegal business activities. 
E) maintain a balanced budget for the federal government.

Question 10

Developing and using a budget is part of the "obtaining" component of financial planning.

Accepted Answer

A) True 
 B)False

Question 11

Resources for financial planning can be found from:

Accepted Answer

A) print media. 
B) digital media. 
C) financial institutions. 
D) financial specialists. 
E) All of these. 
A) print media. 
B) digital media. 
C) financial institutions. 
D) financial specialists. 
E) All of these.

Question 12

You are planning to buy a house in five years.Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Accepted Answer

A) $6,000 
B) $6,590 
C) $7,470 
D) $9,400 
E) $10,000 
A) $6,000 
B) $6,590 
C) $7,470 
D) $9,400 
E) $10,000

Question 13

The first step of the financial planning process is to:

Accepted Answer

A) develop financial goals. 
B) implement the financial plan. 
C) determine your current financial situation. 
D) review and revise your financial plan. 
E) create a financial action plan. 
A) develop financial goals. 
B) implement the financial plan. 
C) determine your current financial situation. 
D) review and revise your financial plan. 
E) create a financial action plan.

Question 14

The financial planning process concludes with efforts to:

Accepted Answer

A) develop financial goals. 
B) create a financial action plan. 
C) determine your current financial situation. 
D) implement the financial action plan. 
E) review and revise your financial plan. 
A) develop financial goals. 
B) create a financial action plan. 
C) determine your current financial situation. 
D) implement the financial action plan. 
E) review and revise your financial plan.

Question 15

Financial planning information sources generally do not include:

Accepted Answer

A) print media 
B) financial specialists 
C) financial institutions 
D) personal friends 
E) digital media 
A) print media 
B) financial specialists 
C) financial institutions 
D) personal friends 
E) digital media

Question 16

The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

Accepted Answer

A) sharing 
B) saving 
C) obtaining 
D) borrowing 
E) protecting 
A) sharing 
B) saving 
C) obtaining 
D) borrowing 
E) protecting

Question 17

Time value of money refers to changes in consumer spending when inflation occurs.

Accepted Answer

A) True 
 B)False

Question 18

Opportunity costs refer to what a person gives up when making a choice.

Accepted Answer

A) True 
 B)False

Question 19

Robo-advisors,3-D printing,robotics,wearable technology,and other innovations will influence your financial decisions in the following ways,except:

Accepted Answer

A) how you earn 
B) how you spend 
C) how you invest 
D) how you travel 
E) how you save 
A) how you earn 
B) how you spend 
C) how you invest 
D) how you travel 
E) how you save

Question 20

Paul Carter is 42 years old,married and has three children,ages 15,13 and 8.This discussion is a demonstration of what factor in personal financial planning?

Accepted Answer

A) Adult life cycle 
B) Economic factors 
C) Global influences 
D) Opportunity costs 
E) None of these 
A) Adult life cycle 
B) Economic factors 
C) Global influences 
D) Opportunity costs 
E) None of these

The changing cost of money when borrowing is referred to as ________ risk.

What are the six steps in the financial planning process?

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

Describe the S-M-A-R-T approach to developing financial goals.Give an example.

When prices are increasing at a rate of 12 percent,the cost of products would double in about how many years?

Determining your current financial situation is a part of which step in the financial planning process?

People are commonly overwhelmed by the many influences on personal financial decisions.What are the factors affecting personal financial planning?

The main responsibility of The Fed is to:

Developing and using a budget is part of the "obtaining" component of financial planning.

Resources for financial planning can be found from:

You are planning to buy a house in five years.Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

The first step of the financial planning process is to:

The financial planning process concludes with efforts to:

Financial planning information sources generally do not include:

The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

Time value of money refers to changes in consumer spending when inflation occurs.

Opportunity costs refer to what a person gives up when making a choice.

Robo-advisors,3-D printing,robotics,wearable technology,and other innovations will influence your financial decisions in the following ways,except:

Paul Carter is 42 years old,married and has three children,ages 15,13 and 8.This discussion is a demonstration of what factor in personal financial planning?

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 1: Personal Finance Basics and the Time Value of Money

The changing cost of money when borrowing is referred to as ________ risk.

What are the six steps in the financial planning process?

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

Describe the S-M-A-R-T approach to developing financial goals.Give an example.

When prices are increasing at a rate of 12 percent,the cost of products would double in about how many years?

Determining your current financial situation is a part of which step in the financial planning process?

People are commonly overwhelmed by the many influences on personal financial decisions.What are the factors affecting personal financial planning?

The main responsibility of The Fed is to:

Developing and using a budget is part of the "obtaining" component of financial planning.

Resources for financial planning can be found from:

You are planning to buy a house in five years.Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

The first step of the financial planning process is to:

The financial planning process concludes with efforts to:

Financial planning information sources generally do not include:

The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

Time value of money refers to changes in consumer spending when inflation occurs.

Opportunity costs refer to what a person gives up when making a choice.

Robo-advisors,3-D printing,robotics,wearable technology,and other innovations will influence your financial decisions in the following ways,except:

Paul Carter is 42 years old,married and has three children,ages 15,13 and 8.This discussion is a demonstration of what factor in personal financial planning?

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters