Question 1

Regardless of income or wealth, setting aside some portion of current income regularly for future use increases the amount of:

Accepted Answer

A) savings. 
B) tax-exempt income. 
C) deferred tax. 
D) employee benefits. 
E) tangible assets. 
A) savings. 
B) tax-exempt income. 
C) deferred tax. 
D) employee benefits. 
E) tangible assets.

Question 2

The _____ environment of your country affects the interest rates you pay on your mortgage and credit cards as well as those you earn on savings accounts and bonds.

Accepted Answer

A) economic 
B) education 
C) technological 
D) social 
E) legal 
A) economic 
B) education 
C) technological 
D) social 
E) legal

Question 3

The stage in which the economy hits a peak is called:

Accepted Answer

A) expansion. 
B) contraction. 
C) stagnation. 
D) recession. 
E) depression. 
A) expansion. 
B) contraction. 
C) stagnation. 
D) recession. 
E) depression.

Question 4

A strong economy leads to:

Accepted Answer

A) a low gross domestic product. 
B) high tax percentages. 
C) high employment opportunities. 
D) low tax penalty rates. 
E) a low value of retirement accounts. 
A) a low gross domestic product. 
B) high tax percentages. 
C) high employment opportunities. 
D) low tax penalty rates. 
E) a low value of retirement accounts.

Question 5

An economy experiences _____ after a peak.

Accepted Answer

A) a convolution 
B) an expansion 
C) a contraction 
D) recovery 
E) prosperity 
A) a convolution 
B) an expansion 
C) a contraction 
D) recovery 
E) prosperity

Question 6

Your purchase, saving, investment, and retirement plans and decisions are not influenced by the present state of the economy.

Accepted Answer

A) True 
 B)False

Question 7

Tax plans are closely tied to investment plans.

Accepted Answer

A) True 
 B)False

Question 8

In addition to discussing your financial goals with your partner, you must allocate responsibility for _____ tasks and decisions.

Accepted Answer

A) skill management 
B) stress management 
C) household management 
D) money management 
E) business cycle management 
A) skill management 
B) stress management 
C) household management 
D) money management 
E) business cycle management

Question 9

Which of the following statements about investments is true?

Accepted Answer

A) As income increases, the need for investment planning decreases. 
B) Keeping money idle is a form of investment. 
C) Higher returns on investment will lead to the accumulation of less wealth. 
D) Investment is measured by the amount of debt incurred. 
E) The length of time for which money is invested is important. 
A) As income increases, the need for investment planning decreases. 
B) Keeping money idle is a form of investment. 
C) Higher returns on investment will lead to the accumulation of less wealth. 
D) Investment is measured by the amount of debt incurred. 
E) The length of time for which money is invested is important.

Question 10

The purchase of a car is an example of:

Accepted Answer

A) consuming. 
B) investing. 
C) saving. 
D) deferring. 
E) distributing. 
A) consuming. 
B) investing. 
C) saving. 
D) deferring. 
E) distributing.

Question 11

Two persons with significantly different income can have equal average propensities to consume because of differences in their standards of living.

Accepted Answer

A) True 
 B)False

Question 12

Following an economic trough, the economy will often enter a(n):

Accepted Answer

A) expansion. 
B) contraction. 
C) deflation. 
D) peak. 
E) another trough. 
A) expansion. 
B) contraction. 
C) deflation. 
D) peak. 
E) another trough.

Question 13

Personal ______   is a systematic process that considers important elements of an individual's monetary affairs in order to fulfill monetary goals.

Accepted Answer

A) conflict resolving 
B) financial planning 
C) standard of living 
D) legal counselling 
E) wealth monitoring 
A) conflict resolving 
B) financial planning 
C) standard of living 
D) legal counselling 
E) wealth monitoring

Question 14

Heads of households who have more formal education:

Accepted Answer

A) pay more tax penalty. 
B) earn more annual income. 
C) save less money. 
D) have less wealth. 
E) have careers with less decision-making responsibility. 
A) pay more tax penalty. 
B) earn more annual income. 
C) save less money. 
D) have less wealth. 
E) have careers with less decision-making responsibility.

Question 15

One trend with a profound effect on people's standard of living is the ____________, which requires greater responsibility to manage money wisely.

Accepted Answer

A) single-income family 
B) two-income family 
C) investment family 
D) retirement-income family 
E) government 
A) single-income family 
B) two-income family 
C) investment family 
D) retirement-income family 
E) government

Question 16

Our ______   is an important factor in determining how well we live.

Accepted Answer

A) income 
B) age 
C) credit 
D) loan interest rate 
E) savings 
A) income 
B) age 
C) credit 
D) loan interest rate 
E) savings

Question 17

Recessions and financial crises will always result in job loss.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about businesses is true?

Accepted Answer

A) Businesses provide goods and services and receive payment in money. 
B) Businesses frame rules and regulations to maintain the law and order in a country. 
C) Businesses determine the kinds of goods and services that a government will use. 
D) Businesses do not interact with other players in the economy. 
E) Businesses are seldom affected by economic cycles. 
A) Businesses provide goods and services and receive payment in money. 
B) Businesses frame rules and regulations to maintain the law and order in a country. 
C) Businesses determine the kinds of goods and services that a government will use. 
D) Businesses do not interact with other players in the economy. 
E) Businesses are seldom affected by economic cycles.

Question 19

Commission-based financial planners charge fees for the financial products they sell.

Accepted Answer

A) True 
 B)False

Question 20

Tax planning is most commonly done to:

Accepted Answer

A) determine the tax penalty. 
B) evade taxes. 
C) minimize taxes. 
D) pay taxes the person considers to be fair. 
E) learn the tax code. 
A) determine the tax penalty. 
B) evade taxes. 
C) minimize taxes. 
D) pay taxes the person considers to be fair. 
E) learn the tax code.

Regardless of income or wealth, setting aside some portion of current income regularly for future use increases the amount of:

The _____ environment of your country affects the interest rates you pay on your mortgage and credit cards as well as those you earn on savings accounts and bonds.

The stage in which the economy hits a peak is called:

A strong economy leads to:

An economy experiences _____ after a peak.

Your purchase, saving, investment, and retirement plans and decisions are not influenced by the present state of the economy.

Tax plans are closely tied to investment plans.

In addition to discussing your financial goals with your partner, you must allocate responsibility for _____ tasks and decisions.

Which of the following statements about investments is true?

The purchase of a car is an example of:

Two persons with significantly different income can have equal average propensities to consume because of differences in their standards of living.

Following an economic trough, the economy will often enter a(n):

Personal ______ is a systematic process that considers important elements of an individual's monetary affairs in order to fulfill monetary goals.

Heads of households who have more formal education:

One trend with a profound effect on people's standard of living is the ____________, which requires greater responsibility to manage money wisely.

Our ______ is an important factor in determining how well we live.

Recessions and financial crises will always result in job loss.

Which of the following statements about businesses is true?

Commission-based financial planners charge fees for the financial products they sell.

Tax planning is most commonly done to:

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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Process

Regardless of income or wealth, setting aside some portion of current income regularly for future use increases the amount of:

The _____ environment of your country affects the interest rates you pay on your mortgage and credit cards as well as those you earn on savings accounts and bonds.

The stage in which the economy hits a peak is called:

A strong economy leads to:

An economy experiences _____ after a peak.

Your purchase, saving, investment, and retirement plans and decisions are not influenced by the present state of the economy.

Tax plans are closely tied to investment plans.

In addition to discussing your financial goals with your partner, you must allocate responsibility for _____ tasks and decisions.

Which of the following statements about investments is true?

The purchase of a car is an example of:

Two persons with significantly different income can have equal average propensities to consume because of differences in their standards of living.

Following an economic trough, the economy will often enter a(n):

Personal ______ is a systematic process that considers important elements of an individual's monetary affairs in order to fulfill monetary goals.

Heads of households who have more formal education:

One trend with a profound effect on people's standard of living is the ____________, which requires greater responsibility to manage money wisely.

Our ______ is an important factor in determining how well we live.

Recessions and financial crises will always result in job loss.

Which of the following statements about businesses is true?

Commission-based financial planners charge fees for the financial products they sell.

Tax planning is most commonly done to:

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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters