Question 1

Which of the following is not an asset?

Accepted Answer

A)  Your house that you rent 
B)  Your car that you financed 
C)  Your coin collection given to you by your grandfather 
D)  Your textbooks 
A)  Your house that you rent 
B)  Your car that you financed 
C)  Your coin collection given to you by your grandfather 
D)  Your textbooks

Question 2

If you set realistic goals rather than unrealistic ones, your plan becomes more useful.

Accepted Answer

A) True 
 B)False

Question 3

Cash flows are affected by financial planning decisions. Which of the following is correct?

Accepted Answer

A)  Car payments you make are cash outflows. 
B)  Investments you make in stock are cash inflows. 
C)  Your routine monthly expenses are cash inflows. 
D)  Your income is a cash outflow. 
A)  Car payments you make are cash outflows. 
B)  Investments you make in stock are cash inflows. 
C)  Your routine monthly expenses are cash inflows. 
D)  Your income is a cash outflow.

Question 4

Various government agencies have conducted surveys that show most people have a good understanding of personal finance.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would not be a factor in evaluating your current financial position?

Accepted Answer

A)  Income 
B)  Expenses 
C)  Possible lottery winnings 
D)  Assets 
A)  Income 
B)  Expenses 
C)  Possible lottery winnings 
D)  Assets

Question 6

When estimating expenses for a budget,

Accepted Answer

A)  last month's and last year's expenses are not a good starting point. 
B)  many of the same expenses do not occur each month. 
C)  large unusual expenses such as car or hospital bills should be included. 
D)  estimating your future assets is a good starting point. 
A)  last month's and last year's expenses are not a good starting point. 
B)  many of the same expenses do not occur each month. 
C)  large unusual expenses such as car or hospital bills should be included. 
D)  estimating your future assets is a good starting point.

Question 7

________ management involves decisions regarding how much credit you need to support spending and which sources of credit to use.

Accepted Answer

A)  Investment 
B)  Money 
C)  Credit 
D)  Liquidity 
A)  Investment 
B)  Money 
C)  Credit 
D)  Liquidity

Question 8

Use the following description of terms to answer the matching questions below:
A) forecasting future expenses and savings
B) uncertainty on a potential return on an investment
C) what you own
D) determining how much money you should set aside for retirement
E) what you owe
F) decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
G) determining how your wealth will be distributed before or upon your death
H) current value of what you own minus what you owe
I) source of current information about a variety of topics
J) access to funds to cover any short-term cash deficiencies
-budgeting

Accepted Answer

The answer of Use the following description of terms to...

Question 9

Effective estate planning will ensure that your wealth is distributed according to your wishes, but will do nothing to reduce the potential taxes your estate is subject to.

Accepted Answer

A) True 
 B)False

Question 10

During his ________ your Uncle Harvey decides to cut you out of his will.

Accepted Answer

The answer of During his ________ your Uncle Harvey decides...

Question 11

"Big spenders" focus their budgeting decisions on

Accepted Answer

A)  reducing expenses. 
B)  increasing income. 
C)  spending most of their income. 
D)  saving most of their income. 
A)  reducing expenses. 
B)  increasing income. 
C)  spending most of their income. 
D)  saving most of their income.

Question 12

All of the following are true with regard to the demand for financial advisers, except

Accepted Answer

A)  many people lack an understanding of personal finance. 
B)  many people prefer to rely on advisers rather than making their own decision. 
C)  many people are just not interested in making their own financial decisions. 
D)  only financial advisers can purchase mutual funds for a person's 401(k). 
A)  many people lack an understanding of personal finance. 
B)  many people prefer to rely on advisers rather than making their own decision. 
C)  many people are just not interested in making their own financial decisions. 
D)  only financial advisers can purchase mutual funds for a person's 401(k).

Question 13

Which of the following statements is not true regarding education and financial position?

Accepted Answer

A)  Your financial position is highly influenced by the amount of education you pursue. 
B)  Higher education always guarantees a higher income. 
C)  The more education you have, the higher your earnings will likely be. 
D)  Before you choose a major, you should consider your skills, interests, and the career paths that will be available to you. 
A)  Your financial position is highly influenced by the amount of education you pursue. 
B)  Higher education always guarantees a higher income. 
C)  The more education you have, the higher your earnings will likely be. 
D)  Before you choose a major, you should consider your skills, interests, and the career paths that will be available to you.

Question 14

If you do not have access to money to cover cash needs, you may have insufficient liquidity.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an example of money management?

Accepted Answer

A)  Putting your money in a savings account at your bank 
B)  Shopping around for the credit card with the best interest rate 
C)  Deciding to delay buying a new car until you can pay cash 
D)  Paying off a loan early to reduce the interest charges 
A)  Putting your money in a savings account at your bank 
B)  Shopping around for the credit card with the best interest rate 
C)  Deciding to delay buying a new car until you can pay cash 
D)  Paying off a loan early to reduce the interest charges

Question 16

Use the following description of terms to answer the matching questions below:
A) forecasting future expenses and savings
B) uncertainty on a potential return on an investment
C) what you own
D) determining how much money you should set aside for retirement
E) what you owe
F) decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments
G) determining how your wealth will be distributed before or upon your death
H) current value of what you own minus what you owe
I) source of current information about a variety of topics
J) access to funds to cover any short-term cash deficiencies
-estate planning

Accepted Answer

The answer of Use the following description of terms to...

Question 17

The simple objective of financial planning is to make the best use of your resources to achieve your financial goals.

Accepted Answer

A) True 
 B)False

Question 18

Liquidity cannot be enhanced using sound money and credit management.

Accepted Answer

A) True 
 B)False

Question 19

Although career choices affect your income, you should choose the career that

Accepted Answer

A)  pays the highest salary even if you dislike the work. 
B)  will be enjoyable and will suit your skills. 
C)  will be the easiest to find employment in. 
D)  requires the least amount of training or education so you can begin working as quickly as possible. 
A)  pays the highest salary even if you dislike the work. 
B)  will be enjoyable and will suit your skills. 
C)  will be the easiest to find employment in. 
D)  requires the least amount of training or education so you can begin working as quickly as possible.

Question 20

________ is the uncertainty surrounding the potential return on an investment.

Accepted Answer

The answer of ________ is the uncertainty surrounding the potential...

Which of the following is not an asset?

If you set realistic goals rather than unrealistic ones, your plan becomes more useful.

Cash flows are affected by financial planning decisions. Which of the following is correct?

Various government agencies have conducted surveys that show most people have a good understanding of personal finance.

Which of the following would not be a factor in evaluating your current financial position?

When estimating expenses for a budget,

________ management involves decisions regarding how much credit you need to support spending and which sources of credit to use.

Effective estate planning will ensure that your wealth is distributed according to your wishes, but will do nothing to reduce the potential taxes your estate is subject to.

During his ________ your Uncle Harvey decides to cut you out of his will.

"Big spenders" focus their budgeting decisions on

All of the following are true with regard to the demand for financial advisers, except

Which of the following statements is not true regarding education and financial position?

If you do not have access to money to cover cash needs, you may have insufficient liquidity.

Which of the following is an example of money management?

The simple objective of financial planning is to make the best use of your resources to achieve your financial goals.

Liquidity cannot be enhanced using sound money and credit management.

Although career choices affect your income, you should choose the career that

________ is the uncertainty surrounding the potential return on an investment.

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

Integrating the Components of a Financial Plan

Filters

Exam 1: Overview of a Financial Plan

Which of the following is not an asset?

If you set realistic goals rather than unrealistic ones, your plan becomes more useful.

Cash flows are affected by financial planning decisions. Which of the following is correct?

Various government agencies have conducted surveys that show most people have a good understanding of personal finance.

Which of the following would not be a factor in evaluating your current financial position?

When estimating expenses for a budget,

________ management involves decisions regarding how much credit you need to support spending and which sources of credit to use.

Effective estate planning will ensure that your wealth is distributed according to your wishes, but will do nothing to reduce the potential taxes your estate is subject to.

During his ________ your Uncle Harvey decides to cut you out of his will.

"Big spenders" focus their budgeting decisions on

All of the following are true with regard to the demand for financial advisers, except

Which of the following statements is not true regarding education and financial position?

If you do not have access to money to cover cash needs, you may have insufficient liquidity.

Which of the following is an example of money management?

The simple objective of financial planning is to make the best use of your resources to achieve your financial goals.

Liquidity cannot be enhanced using sound money and credit management.

Although career choices affect your income, you should choose the career that

________ is the uncertainty surrounding the potential return on an investment.

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

Integrating the Components of a Financial Plan

Filters