Question 1

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 2

Personal financial planning is important because it:

Accepted Answer

A)  controls inflation. 
B)  limits consumption. 
C)  reduces social disparity. 
D)  results in an improved standard of living. 
E)  reduces economic differences among individuals. 
A)  controls inflation. 
B)  limits consumption. 
C)  reduces social disparity. 
D)  results in an improved standard of living. 
E)  reduces economic differences among individuals.

Question 3

Instructions : 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 Instructions : Choose the word or phrase...

Question 4

Which of the following statements about money and relationships is true?

Accepted Answer

A)  It is highly possible to change a partner's financial style. 
B)  One of the most important aspects of marriage is financial compatibility. 
C)  Money does not cause emotional issues in any relationship. 
D)  The best way to resolve a money dispute is to avoid such a discussion. 
E)  Financial planning does not help in resolving conflicts related to money. 
A)  It is highly possible to change a partner's financial style. 
B)  One of the most important aspects of marriage is financial compatibility. 
C)  Money does not cause emotional issues in any relationship. 
D)  The best way to resolve a money dispute is to avoid such a discussion. 
E)  Financial planning does not help in resolving conflicts related to money.

Question 5

Tax plans are closely tied to investment plans.

Accepted Answer

A) True 
 B)False

Question 6

Estate planning involves:

Accepted Answer

A)  considering how your wealth can be most effectively passed on to your heirs. 
B)  determining the income you need to maintain. 
C)  the dissolution of all privately held corporations. 
D)  the valuation and auctioning of your valuables by hiring a professional tax planner. 
E)  planning for retirement. 
A)  considering how your wealth can be most effectively passed on to your heirs. 
B)  determining the income you need to maintain. 
C)  the dissolution of all privately held corporations. 
D)  the valuation and auctioning of your valuables by hiring a professional tax planner. 
E)  planning for retirement.

Question 7

The best way to achieve your financial objectives is to:

Accepted Answer

A)  have a luxurious standard of living. 
B)  spend your money at once to reach your objectives swiftly. 
C)  develop a sound financial plan. 
D)  create a good tax deferment strategy. 
E)  monitor your spending. 
A)  have a luxurious standard of living. 
B)  spend your money at once to reach your objectives swiftly. 
C)  develop a sound financial plan. 
D)  create a good tax deferment strategy. 
E)  monitor your spending.

Question 8

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 9

You should limit your spending to no more than 20 percent more than what you earn.

Accepted Answer

A) True 
 B)False

Question 10

Instructions : 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. 
[ Vacations | Education ] would be considered a necessity of life.

Accepted Answer

The answer of Instructions : Choose the word or phrase...

Question 11

Tangible assets are earning assets that are held for the returns they promise.

Accepted Answer

A) True 
 B)False

Question 12

Instructions : 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 federal government's [ fiscal  | monetary ] policy is used to stimulate or moderate economic growth.

Accepted Answer

The answer of Instructions : Choose the word or phrase...

Question 13

Instructions : 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 portion of current income an individual commits to future needs depends on his or her [ short-term financial goals | average propensity to consume ].

Accepted Answer

The answer of Instructions : Choose the word or phrase...

Question 14

Instructions : 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 | noncontrollable ] factor that has a considerable effect on your income.

Accepted Answer

The answer of Instructions : Choose the word or phrase...

Question 15

When you get your first job, you should make a good financial plan that you can follow without making changes until you retire.

Accepted Answer

A) True 
 B)False

Question 16

Marital status affects the income level of individuals.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

Instructions : 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 key to building a sound financial future is to [ save every extra dollar you can | create a flexible financial plan and regularly revise it ].

Accepted Answer

The answer of Instructions : Choose the word or phrase...

Question 19

Tax planning is most common among individuals with _____ incomes.

Accepted Answer

A)  low 
B)  high 
C)  no 
D)  erratic 
E)  decreasing 
A)  low 
B)  high 
C)  no 
D)  erratic 
E)  decreasing

Question 20

Living costs are constant throughout the country.

Accepted Answer

A) True 
 B)False

The purchase of a car is an example of:

Personal financial planning is important because it:

Which of the following statements about money and relationships is true?

Tax plans are closely tied to investment plans.

Estate planning involves:

The best way to achieve your financial objectives is to:

An economy experiences _____ after a peak.

You should limit your spending to no more than 20 percent more than what you earn.

Instructions : 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. [ Vacations | Education ] would be considered a necessity of life.

Tangible assets are earning assets that are held for the returns they promise.

When you get your first job, you should make a good financial plan that you can follow without making changes until you retire.

Marital status affects the income level of individuals.

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.

Tax planning is most common among individuals with _____ incomes.

Living costs are constant throughout the country.

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

The purchase of a car is an example of:

Personal financial planning is important because it:

Which of the following statements about money and relationships is true?

Tax plans are closely tied to investment plans.

Estate planning involves:

The best way to achieve your financial objectives is to:

An economy experiences _____ after a peak.

You should limit your spending to no more than 20 percent more than what you earn.

Instructions : 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. [ Vacations | Education ] would be considered a necessity of life.

Tangible assets are earning assets that are held for the returns they promise.

When you get your first job, you should make a good financial plan that you can follow without making changes until you retire.

Marital status affects the income level of individuals.

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.

Tax planning is most common among individuals with _____ incomes.

Living costs are constant throughout the country.

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters