Question 1

Use the following two columns of items to answer the matching questions below:
-mortgage loan

Accepted Answer

A) a place to store your financial documents 
B) a loan to purchase a home or condominium 
C) amount saved for the future 
D) asset and income protection 
A) a place to store your financial documents 
B) a loan to purchase a home or condominium 
C) amount saved for the future 
D) asset and income protection

Question 2

Personal financing can do all of the following, except

Accepted Answer

A)  allow you to make purchases without having the full amount of cash on hand. 
B)  increase the amount of your assets. 
C)  prove useful for large purchases. 
D)  help in increasing your ability to save. 
A)  allow you to make purchases without having the full amount of cash on hand. 
B)  increase the amount of your assets. 
C)  prove useful for large purchases. 
D)  help in increasing your ability to save.

Question 3

Which of the following statements about insurance is not true?

Accepted Answer

A)  It protects you from events that could reduce your wealth. 
B)  Money used to buy insurance is not available for investing. 
C)  You cannot have too much insurance. 
D)  All of the above are true about insurance. 
A)  It protects you from events that could reduce your wealth. 
B)  Money used to buy insurance is not available for investing. 
C)  You cannot have too much insurance. 
D)  All of the above are true about insurance.

Question 4

Use the following two columns of items to answer the matching questions below:
-retirement account

Accepted Answer

A) a place to store your financial documents 
B) a loan to purchase a home or condominium 
C) amount saved for the future 
D) asset and income protection 
A) a place to store your financial documents 
B) a loan to purchase a home or condominium 
C) amount saved for the future 
D) asset and income protection

Question 5

Which of the following investments generally reduces pre-tax income?

Accepted Answer

A)  Stocks 
B)  Retirement account contributions 
C)  Mutual funds 
D)  Bonds 
A)  Stocks 
B)  Retirement account contributions 
C)  Mutual funds 
D)  Bonds

Question 6

If you own personal property, which type of insurance are you most likely to budget for first?

Accepted Answer

A)  Property and casualty insurance 
B)  Disability insurance 
C)  Health insurance 
D)  Flood insurance 
A)  Property and casualty insurance 
B)  Disability insurance 
C)  Health insurance 
D)  Flood insurance

Question 7

Budgeting decisions involve a tradeoff between spending today and allocating funds for the future.

Accepted Answer

A) True 
 B)False

Question 8

One disadvantage of financing a new car with a 15-year home equity loan is

Accepted Answer

A)  the interest is tax-deductible. 
B)  the interest is not tax-deductible. 
C)  you are mismatching the asset life with the term of the loan. 
D)  There are no disadvantages of borrowing on a home equity loan. 
A)  the interest is tax-deductible. 
B)  the interest is not tax-deductible. 
C)  you are mismatching the asset life with the term of the loan. 
D)  There are no disadvantages of borrowing on a home equity loan.

Question 9

List five areas that affect your financial plan.

Accepted Answer

Budgeting, managing liquidity,

Question 10

Key documents for managing personal financing include all, except

Accepted Answer

A)  credit card statements. 
B)  retirement account balances. 
C)  personal loans, such as automobile loans. 
D)  mortgage loan agreement. 
A)  credit card statements. 
B)  retirement account balances. 
C)  personal loans, such as automobile loans. 
D)  mortgage loan agreement.

Question 11

You have a car loan at an 8% per year interest, school loans averaging 3% per year interest, credit card debt at 14% per year interest, and you are investing in a fund in which you are earning 7% per year. If you have excess cash flow of $200 per month, prioritize where you should make accelerated payments or invest the cash to optimize the financial result.

Accepted Answer

A)  Credit card debt, car loan, investment, school loan 
B)  Investment, car loan, school loan, credit card debt 
C)  Investment, school loan, credit card debt, car loan 
D)  Always put excess cash to use in an investment. 
A)  Credit card debt, car loan, investment, school loan 
B)  Investment, car loan, school loan, credit card debt 
C)  Investment, school loan, credit card debt, car loan 
D)  Always put excess cash to use in an investment.

Question 12

Your liquid assets do not include your

Accepted Answer

A)  bank account balances. 
B)  money market securities. 
C)  certificates of deposit. 
D)  bond mutual funds. 
A)  bank account balances. 
B)  money market securities. 
C)  certificates of deposit. 
D)  bond mutual funds.

Question 13

Which of the following will not improve your net worth?

Accepted Answer

A)  Increasing your income 
B)  Decreasing your expenses 
C)  Increasing your assets 
D)  Increasing your liabilities 
A)  Increasing your income 
B)  Decreasing your expenses 
C)  Increasing your assets 
D)  Increasing your liabilities

Question 14

Which component of a financial plan affects all the other components of the financial plan?

Accepted Answer

A)  Budgeting 
B)  Retirement planning 
C)  Investing 
D)  Estate planning 
A)  Budgeting 
B)  Retirement planning 
C)  Investing 
D)  Estate planning

Question 15

The purpose of financial planning is to help do all of the following, except

Accepted Answer

A)  set goals. 
B)  increase your spending. 
C)  become financially educated. 
D)  increase wealth or net worth. 
A)  set goals. 
B)  increase your spending. 
C)  become financially educated. 
D)  increase wealth or net worth.

Question 16

You may want to make additional loan payments to pay off your loan faster if the interest rate you are paying is higher than you could obtain from an investment.

Accepted Answer

A) True 
 B)False

Question 17

Don wants to have $50,000 available in 10 years for retirement living expenses and health care. If he earns an average of 8% on his investments, what amount must he invest each year?

Accepted Answer

A)  $3,451 
B)  $5,000 
C)  $4,372 
D)  $4,003 
A)  $3,451 
B)  $5,000 
C)  $4,372 
D)  $4,003

Question 18

Personal financing can be beneficial because it allows you to make purchases now without the full amount of cash on hand.

Accepted Answer

A) True 
 B)False

Question 19

Stocks of smaller firms are more volatile than those of larger firms and, therefore, are not as liquid.

Accepted Answer

A) True 
 B)False

Question 20

Most people set financial goals early in life and these goals rarely change.

Accepted Answer

A) True 
 B)False

Use the following two columns of items to answer the matching questions below: -mortgage loan

Personal financing can do all of the following, except

Which of the following statements about insurance is not true?

Use the following two columns of items to answer the matching questions below: -retirement account

Which of the following investments generally reduces pre-tax income?

If you own personal property, which type of insurance are you most likely to budget for first?

Budgeting decisions involve a tradeoff between spending today and allocating funds for the future.

One disadvantage of financing a new car with a 15-year home equity loan is

List five areas that affect your financial plan.

Key documents for managing personal financing include all, except

Your liquid assets do not include your

Which of the following will not improve your net worth?

Which component of a financial plan affects all the other components of the financial plan?

The purpose of financial planning is to help do all of the following, except

You may want to make additional loan payments to pay off your loan faster if the interest rate you are paying is higher than you could obtain from an investment.

Don wants to have $50,000 available in 10 years for retirement living expenses and health care. If he earns an average of 8% on his investments, what amount must he invest each year?

Personal financing can be beneficial because it allows you to make purchases now without the full amount of cash on hand.

Stocks of smaller firms are more volatile than those of larger firms and, therefore, are not as liquid.

Most people set financial goals early in life and these goals rarely change.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Filters

Exam 21: Integrating the Components of a Financial Plan

Use the following two columns of items to answer the matching questions below: -mortgage loan

Personal financing can do all of the following, except

Which of the following statements about insurance is not true?

Use the following two columns of items to answer the matching questions below: -retirement account

Which of the following investments generally reduces pre-tax income?

If you own personal property, which type of insurance are you most likely to budget for first?

Budgeting decisions involve a tradeoff between spending today and allocating funds for the future.

One disadvantage of financing a new car with a 15-year home equity loan is

List five areas that affect your financial plan.

Key documents for managing personal financing include all, except

Your liquid assets do not include your

Which of the following will not improve your net worth?

Which component of a financial plan affects all the other components of the financial plan?

The purpose of financial planning is to help do all of the following, except

You may want to make additional loan payments to pay off your loan faster if the interest rate you are paying is higher than you could obtain from an investment.

Don wants to have $50,000 available in 10 years for retirement living expenses and health care. If he earns an average of 8% on his investments, what amount must he invest each year?

Personal financing can be beneficial because it allows you to make purchases now without the full amount of cash on hand.

Stocks of smaller firms are more volatile than those of larger firms and, therefore, are not as liquid.

Most people set financial goals early in life and these goals rarely change.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Filters