Question 1

The time value of money refers to:

Accepted Answer

A) opportunity costs such as time lost on an activity. 
B) financial decisions that require borrowing funds from a financial institution. 
C) changes in interest rates due to changes in the supply and demand for money in our economy. 
D) increases in an amount of money as a result of interest earned. 
E) changing demographic trends in our society. 
A) opportunity costs such as time lost on an activity. 
B) financial decisions that require borrowing funds from a financial institution. 
C) changes in interest rates due to changes in the supply and demand for money in our economy. 
D) increases in an amount of money as a result of interest earned. 
E) changing demographic trends in our society.

Question 2

Which of the following is an example of opportunity cost?

Accepted Answer

A) Renting an apartment near school 
B) Saving money instead of taking a vacation 
C) Setting aside money for paying income tax 
D) Purchasing automobile insurance 
E) Using a personal computer for financial planning 
A) Renting an apartment near school 
B) Saving money instead of taking a vacation 
C) Setting aside money for paying income tax 
D) Purchasing automobile insurance 
E) Using a personal computer for financial planning

Question 3

A security is a financial instrument and includes all of the following,except:

Accepted Answer

A) bonds 
B) stocks 
C) certificates of deposit 
D) mutual funds 
E) rare coins 
A) bonds 
B) stocks 
C) certificates of deposit 
D) mutual funds 
E) rare coins

Question 4

Many events affect your life situation and occur within the adult life cycle.List five events.

Accepted Answer

Answers will vary.
Graduation (at all ed

Question 5

Economics is the study of using money to achieve financial goals.

Accepted Answer

A) True 
 B)False

Question 6

Types of risks associated with financial decisions may include:

Accepted Answer

A) Income risk 
B) Personal risk 
C) Liquidity risk 
D) Inflation risk 
E) All of these 
A) Income risk 
B) Personal risk 
C) Liquidity risk 
D) Inflation risk 
E) All of these

Question 7

The stages in the family and financial needs of an adult are called the:

Accepted Answer

A) financial planning process. 
B) budgeting procedure. 
C) personal economic cycle. 
D) adult life cycle. 
E) tax planning process. 
A) financial planning process. 
B) budgeting procedure. 
C) personal economic cycle. 
D) adult life cycle. 
E) tax planning process.

Question 8

The Fed refers to:

Accepted Answer

A) government regulation of business. 
B) Congress. 
C) the Federal Reserve System. 
D) the Federal Deposit Insurance Corporation. 
E) spending by the federal government. 
A) government regulation of business. 
B) Congress. 
C) the Federal Reserve System. 
D) the Federal Deposit Insurance Corporation. 
E) spending by the federal government.

Question 9

Present value is often referred to as compounding.

Accepted Answer

A) True 
 B)False

Question 10

As Olivia Wilson plans to set aside funds for her young children's college education,she is setting a(n)________ goal.

Accepted Answer

A) intermediate 
B) long-term 
C) short-term 
D) intangible 
E) durable 
A) intermediate 
B) long-term 
C) short-term 
D) intangible 
E) durable

Question 11

Attempts to increase financial resources are part of the ________ component of financial planning.

Accepted Answer

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

Question 12

When prices are rising at a rate of 3 percent,the cost of products and services would double in ________ years.

Accepted Answer

A) 3 
B) 6 
C) 18 
D) 24 
E) 72 
A) 3 
B) 6 
C) 18 
D) 24 
E) 72

Question 13

Changes in personal,social,and economic factors make it necessary to:

Accepted Answer

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

Question 14

Benjamin Smith has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow.What type of goal would this be for Benjamin?

Accepted Answer

A) Consumable-product goal 
B) Durable-product goal 
C) Intangible goal 
D) Intermediate goal 
E) Long term goal 
A) Consumable-product goal 
B) Durable-product goal 
C) Intangible goal 
D) Intermediate goal 
E) Long term goal

Question 15

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which component of financial planning does this deal with?

Accepted Answer

A) Borrowing 
B) Spending 
C) Managing risk 
D) Investing 
E) Retirement and estate planning 
A) Borrowing 
B) Spending 
C) Managing risk 
D) Investing 
E) Retirement and estate planning

Question 16

Developing financial goals is the ________ 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 17

Increased consumer spending will usually cause:

Accepted Answer

A) lower consumer prices. 
B) reduced employment levels. 
C) lower wages. 
D) lower interest rates. 
E) higher employment levels. 
A) lower consumer prices. 
B) reduced employment levels. 
C) lower wages. 
D) lower interest rates. 
E) higher employment levels.

Question 18

Which type of computation would a person use to determine the current value of a desired amount in the future?

Accepted Answer

A) Simple interest 
B) Future value of a single amount 
C) Future value of a series of deposits 
D) Present value of a single amount 
E) Compound interest 
A) Simple interest 
B) Future value of a single amount 
C) Future value of a series of deposits 
D) Present value of a single amount 
E) Compound interest

Question 19

What are the eight Components of Financial Planning?

Accepted Answer

The main Components of Financi

Question 20

Which of the following goals would be the easiest to implement and measure its accomplishment?

Accepted Answer

A) "Reduce our debt payments." 
B) "Save funds for an annual vacation." 
C) "Save $50 a month to create a $2,000 emergency fund." 
D) "Invest $1,200 a year for retirement." 
E) "Increase our emergency fund." 
A) "Reduce our debt payments." 
B) "Save funds for an annual vacation." 
C) "Save $50 a month to create a $2,000 emergency fund." 
D) "Invest $1,200 a year for retirement." 
E) "Increase our emergency fund."

The time value of money refers to:

Which of the following is an example of opportunity cost?

A security is a financial instrument and includes all of the following,except:

Many events affect your life situation and occur within the adult life cycle.List five events.

Economics is the study of using money to achieve financial goals.

Types of risks associated with financial decisions may include:

The stages in the family and financial needs of an adult are called the:

The Fed refers to:

Present value is often referred to as compounding.

As Olivia Wilson plans to set aside funds for her young children's college education,she is setting a(n)________ goal.

Attempts to increase financial resources are part of the ________ component of financial planning.

When prices are rising at a rate of 3 percent,the cost of products and services would double in ________ years.

Changes in personal,social,and economic factors make it necessary to:

Benjamin Smith has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow.What type of goal would this be for Benjamin?

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which component of financial planning does this deal with?

Developing financial goals is the ________ step in the financial planning process.

Increased consumer spending will usually cause:

Which type of computation would a person use to determine the current value of a desired amount in the future?

What are the eight Components of Financial Planning?

Which of the following goals would be the easiest to implement and measure its accomplishment?

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 time value of money refers to:

Which of the following is an example of opportunity cost?

A security is a financial instrument and includes all of the following,except:

Many events affect your life situation and occur within the adult life cycle.List five events.

Economics is the study of using money to achieve financial goals.

Types of risks associated with financial decisions may include:

The stages in the family and financial needs of an adult are called the:

The Fed refers to:

Present value is often referred to as compounding.

As Olivia Wilson plans to set aside funds for her young children's college education,she is setting a(n)________ goal.

Attempts to increase financial resources are part of the ________ component of financial planning.

When prices are rising at a rate of 3 percent,the cost of products and services would double in ________ years.

Changes in personal,social,and economic factors make it necessary to:

Benjamin Smith has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow.What type of goal would this be for Benjamin?

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which component of financial planning does this deal with?

Developing financial goals is the ________ step in the financial planning process.

Increased consumer spending will usually cause:

Which type of computation would a person use to determine the current value of a desired amount in the future?

What are the eight Components of Financial Planning?

Which of the following goals would be the easiest to implement and measure its accomplishment?

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