Question 1

Financial planning can help us to

Accepted Answer

A)  control inflation. 
B)  spend wisely. 
C)  control unemployment rates. 
D)  a and b. 
E)  a, b, and c. 
A)  control inflation. 
B)  spend wisely. 
C)  control unemployment rates. 
D)  a and b. 
E)  a, b, and c.

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The average American's [home equity | home mortgage] is higher.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

Financial assets include investments such as stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

Typically people with the lowest incomes tend to be

Accepted Answer

A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless. 
A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless.

Question 6

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Accepted Answer

A) True 
 B)False

Question 7

Inflation refers to

Accepted Answer

A)  rising prices. 
B)  declining interest rates. 
C)  the opposite of wealth. 
D)  the opposite of stagflation. 
E)  declining prices. 
A)  rising prices. 
B)  declining interest rates. 
C)  the opposite of wealth. 
D)  the opposite of stagflation. 
E)  declining prices.

Question 8

Your personal value system will shape your attitude toward money and wealth accumulation.

Accepted Answer

A) True 
 B)False

Question 9

The term most closely associated with quality of life is

Accepted Answer

A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money. 
A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money.

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-For most people,employee benefits are of [little | major] importance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Employee benefits can typically be transferred to a new job when one changes employers.

Accepted Answer

A) True 
 B)False

Question 12

____ tends to increase and then decrease over the life cycle.

Accepted Answer

A)  Debt 
B)  Income 
C)  Emergency funds 
D)  a and b 
E)  a, b, and c 
A)  Debt 
B)  Income 
C)  Emergency funds 
D)  a and b 
E)  a, b, and c

Question 13

A personal computer can be very useful in assisting one with their financial planning.

Accepted Answer

A) True 
 B)False

Question 14

Ideally,retirement planning should begin

Accepted Answer

A)  during the year before retirement. 
B)  when the last child has left home. 
C)  as soon as the mortgage is paid off. 
D)  when you get married. 
E)  none of these. 
A)  during the year before retirement. 
B)  when the last child has left home. 
C)  as soon as the mortgage is paid off. 
D)  when you get married. 
E)  none of these.

Question 15

Estate planning involves

Accepted Answer

A)  considering how your wealth can be most effectively passed on to heirs. 
B)  payment of all back taxes. 
C)  dissolution of all privately held corporations. 
D)  valuation and auctioning of your valuables. 
E)  planning retirements. 
A)  considering how your wealth can be most effectively passed on to heirs. 
B)  payment of all back taxes. 
C)  dissolution of all privately held corporations. 
D)  valuation and auctioning of your valuables. 
E)  planning retirements.

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Typically,your salary will be [higher | lower] if you live in a large metropolitan area rather than a small town or rural area.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The best way to achieve your financial objectives is to [save every extra dollar you can | develop a sound financial plan].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

Money can be an emotional factor that may affect a person's financial plans.

Accepted Answer

A) True 
 B)False

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Your level of formal education is a [controllable | non controllable] factor that has a considerable effect on your income.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Most people graduate from college with [no | some] debts.

Accepted Answer

The answer of Choose the word or phrase in [...

Financial planning can help us to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The average American's [home equity | home mortgage] is higher.

Financial assets include investments such as stocks and bonds.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Typically people with the lowest incomes tend to be

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Inflation refers to

Your personal value system will shape your attitude toward money and wealth accumulation.

The term most closely associated with quality of life is

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -For most people,employee benefits are of [little | major] importance.

Employee benefits can typically be transferred to a new job when one changes employers.

____ tends to increase and then decrease over the life cycle.

A personal computer can be very useful in assisting one with their financial planning.

Ideally,retirement planning should begin

Estate planning involves

Money can be an emotional factor that may affect a person's financial plans.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Most people graduate from college with [no | some] debts.

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

Financial planning can help us to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The average American's [home equity | home mortgage] is higher.

Financial assets include investments such as stocks and bonds.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Typically people with the lowest incomes tend to be

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.

Inflation refers to

Your personal value system will shape your attitude toward money and wealth accumulation.

The term most closely associated with quality of life is

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -For most people,employee benefits are of [little | major] importance.

Employee benefits can typically be transferred to a new job when one changes employers.

____ tends to increase and then decrease over the life cycle.

A personal computer can be very useful in assisting one with their financial planning.

Ideally,retirement planning should begin

Estate planning involves

Money can be an emotional factor that may affect a person's financial plans.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Most people graduate from college with [no | some] debts.

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters