Question 1

Financial planning takes place in a dynamic economic environment created by the actions of the government, business, and consumers.

Accepted Answer

A) True 
 B)False

Question 2

The purchase of  _____  is an example of the purchase of a financial asset.

Accepted Answer

A)  a home 
B)  stocks 
C)  a car 
D)  jewelry 
E)  a vacation home 
A)  a home 
B)  stocks 
C)  a car 
D)  jewelry 
E)  a vacation home

Question 3

A person's _____ generally leads to an increase in income potential in his or her career.

Accepted Answer

A)  formal education 
B)  social status 
C)  marital status 
D)  corporate loyalty 
E)  family size 
A)  formal education 
B)  social status 
C)  marital status 
D)  corporate loyalty 
E)  family size

Question 4

An individual's quality of life is closely tied to his or her:

Accepted Answer

A)  political orientation. 
B)  charitable contributions. 
C)  pollution control efforts. 
D)  standard of living. 
E)  educational qualifications. 
A)  political orientation. 
B)  charitable contributions. 
C)  pollution control efforts. 
D)  standard of living. 
E)  educational qualifications.

Question 5

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. 
"I want to accumulate a comfortable retirement fund" [ would | would not ] be a specific financial goal.

Accepted Answer

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

Question 6

Recessions and financial crises will always result in job loss.

Accepted Answer

A) True 
 B)False

Question 7

In the United States, salaries tend to be higher in the Northeast and West than in the South.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about businesses is true?

Accepted Answer

A)  Businesses provide consumers with goods and services and receive payment in the form of 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 consumers with goods and services and receive payment in the form of 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 9

Which of the following statements about setting long-term goals is true?

Accepted Answer

A)  The goals should be very ambitious. 
B)  The goals should be realistic. 
C)  The goals should be attained in 6 months to a year. 
D)  The goals should be easy to meet. 
E)  The goals should be set and remain unchanged. 
A)  The goals should be very ambitious. 
B)  The goals should be realistic. 
C)  The goals should be attained in 6 months to a year. 
D)  The goals should be easy to meet. 
E)  The goals should be set and remain unchanged.

Question 10

Managing life, health, and disability insurance is an important part of _____ planning.

Accepted Answer

A)  asset acquisition 
B)  tax 
C)  retirement 
D)  estate 
E)  employee benefit 
A)  asset acquisition 
B)  tax 
C)  retirement 
D)  estate 
E)  employee benefit

Question 11

Which of the following will legally reduce an investor's tax liability?

Accepted Answer

A)  Tax evasion 
B)  Tax shelter 
C)  Tax penalty 
D)  Tax accounting 
E)  Tax portfolio 
A)  Tax evasion 
B)  Tax shelter 
C)  Tax penalty 
D)  Tax accounting 
E)  Tax portfolio

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Salaries vary across geographical areas because of _____ costs.

Accepted Answer

A)  legal 
B)  living 
C)  social 
D)  psychological 
E)  technological 
A)  legal 
B)  living 
C)  social 
D)  psychological 
E)  technological

Question 14

The consumer price index (CPI) is a measure of :

Accepted Answer

A)  unemployment. 
B)  inflation. 
C)  stagnation. 
D)  recession. 
E)  saving. 
A)  unemployment. 
B)  inflation. 
C)  stagnation. 
D)  recession. 
E)  saving.

Question 15

The most effective way to achieve financial objectives is through personal financial planning.

Accepted Answer

A) True 
 B)False

Question 16

The support of philanthropic organizations is a material item that contributes to our quality of life.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Short-term planning should include creating and maintaining an emergency fund with at least 6 months' worth of income.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following are included in employee benefit plans?

Accepted Answer

A)  Career plans 
B)  Retirement plans 
C)  Tax deferment plans 
D)  Personal asset plans 
E)  Bankruptcy recovery plans 
A)  Career plans 
B)  Retirement plans 
C)  Tax deferment plans 
D)  Personal asset plans 
E)  Bankruptcy recovery plans

Question 20

The average propensity to consume refers to:

Accepted Answer

A)  the dollars of income spent on luxury goods. 
B)  the dollars of income saved by an individual. 
C)  expenditures on the basic necessities of life. 
D)  the percentage of income spent for current needs. 
E)  the fact that people with higher propensity to consume earn lower income. 
A)  the dollars of income spent on luxury goods. 
B)  the dollars of income saved by an individual. 
C)  expenditures on the basic necessities of life. 
D)  the percentage of income spent for current needs. 
E)  the fact that people with higher propensity to consume earn lower income.

Financial planning takes place in a dynamic economic environment created by the actions of the government, business, and consumers.

The purchase of _____ is an example of the purchase of a financial asset.

A person's _____ generally leads to an increase in income potential in his or her career.

An individual's quality of life is closely tied to his or her:

Recessions and financial crises will always result in job loss.

In the United States, salaries tend to be higher in the Northeast and West than in the South.

Which of the following statements about businesses is true?

Which of the following statements about setting long-term goals is true?

Managing life, health, and disability insurance is an important part of _____ planning.

Which of the following will legally reduce an investor's tax liability?

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

Salaries vary across geographical areas because of _____ costs.

The consumer price index (CPI) is a measure of :

The most effective way to achieve financial objectives is through personal financial planning.

The support of philanthropic organizations is a material item that contributes to our quality of life.

Which of the following statements about investments is true?

Short-term planning should include creating and maintaining an emergency fund with at least 6 months' worth of income.

Which of the following are included in employee benefit plans?

The average propensity to consume refers to:

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

Financial planning takes place in a dynamic economic environment created by the actions of the government, business, and consumers.

The purchase of _____ is an example of the purchase of a financial asset.

A person's _____ generally leads to an increase in income potential in his or her career.

An individual's quality of life is closely tied to his or her:

Recessions and financial crises will always result in job loss.

In the United States, salaries tend to be higher in the Northeast and West than in the South.

Which of the following statements about businesses is true?

Which of the following statements about setting long-term goals is true?

Managing life, health, and disability insurance is an important part of _____ planning.

Which of the following will legally reduce an investor's tax liability?

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

Salaries vary across geographical areas because of _____ costs.

The consumer price index (CPI) is a measure of :

The most effective way to achieve financial objectives is through personal financial planning.

The support of philanthropic organizations is a material item that contributes to our quality of life.

Which of the following statements about investments is true?

Short-term planning should include creating and maintaining an emergency fund with at least 6 months' worth of income.

Which of the following are included in employee benefit plans?

The average propensity to consume refers to:

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