Question 1

Setting long- and short-term career goals helps in career planning.

Accepted Answer

A) True 
 B)False

Question 2

_____ is the net total value of all the items that an individual owns.

Accepted Answer

A)  Wealth 
B)  Propensity to consume 
C)  The consumer price index (CPI) 
D)  Purchasing power 
E)  Credit debt 
A)  Wealth 
B)  Propensity to consume 
C)  The consumer price index (CPI) 
D)  Purchasing power 
E)  Credit debt

Question 3

Which of the following statements about the earning power of an individual is true?

Accepted Answer

A)  Income varies across different geographic locations due to varying costs of living. 
B)  Heads of households who have less formal education earn more. 
C)  Career planning does not help in improving earning potential. 
D)  People who are very old have high incomes. 
E)  Marital status has no impact on an individual's personal income. 
A)  Income varies across different geographic locations due to varying costs of living. 
B)  Heads of households who have less formal education earn more. 
C)  Career planning does not help in improving earning potential. 
D)  People who are very old have high incomes. 
E)  Marital status has no impact on an individual's personal income.

Question 4

A key determinant of an individual's quality of life is his or her:

Accepted Answer

A)  tax bill. 
B)  financial goals. 
C)  wealth. 
D)  motivation. 
E)  growth potential. 
A)  tax bill. 
B)  financial goals. 
C)  wealth. 
D)  motivation. 
E)  growth potential.

Question 5

Which of the following statements about inflation is true?

Accepted Answer

A)  The most common measure of inflation is the consumer price index (CPI). 
B)  Since 1980, inflation in the United States has risen dramatically. 
C)  High inflation is good for interest rates and stock and bond prices. 
D)  Inflation has no effect on what we earn in our jobs. 
E)  High rates of inflation tend to drive down the cost of borrowing money. 
A)  The most common measure of inflation is the consumer price index (CPI). 
B)  Since 1980, inflation in the United States has risen dramatically. 
C)  High inflation is good for interest rates and stock and bond prices. 
D)  Inflation has no effect on what we earn in our jobs. 
E)  High rates of inflation tend to drive down the cost of borrowing money.

Question 6

Which of the following is an example of a liquid asset?

Accepted Answer

A)  A mutual fund 
B)  Stocks 
C)  An automobile 
D)  Land 
E)  A savings account 
A)  A mutual fund 
B)  Stocks 
C)  An automobile 
D)  Land 
E)  A savings account

Question 7

In _____ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

Accepted Answer

A)  cafeteria 
B)  fixed-benefit 
C)  estate 
D)  profit-sharing 
E)  saving 
A)  cafeteria 
B)  fixed-benefit 
C)  estate 
D)  profit-sharing 
E)  saving

Question 8

Individuals who have more formal education _____ than do those with lesser degrees.

Accepted Answer

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

Question 9

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

Accepted Answer

A)  conflict resolution 
B)  financial planning 
C)  standard of living 
D)  legal counseling 
E)  wealth monitoring 
A)  conflict resolution 
B)  financial planning 
C)  standard of living 
D)  legal counseling 
E)  wealth monitoring

Question 10

The three key groups in the economic environment are:

Accepted Answer

A)  government, regulators, and business. 
B)  government, consultants, and business. 
C)  consumers, economists, and business. 
D)  consumers, business, and managers. 
E)  government, consumers, and business. 
A)  government, regulators, and business. 
B)  government, consultants, and business. 
C)  consumers, economists, and business. 
D)  consumers, business, and managers. 
E)  government, consumers, and business.

Question 11

The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.

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. 
Movable property, such as automobiles, household furnishings, and jewelry, are considered [ personal  | real ] property.

Accepted Answer

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

Question 13

It is easy to change your partner's financial style, so there is no need for financial planning to resolve conflicts regarding money matters.

Accepted Answer

A) True 
 B)False

Question 14

Employee benefits may include all of the following EXCEPT:

Accepted Answer

A)  asset purchases. 
B)  life insurance. 
C)  child care assistance programs. 
D)  pension plans. 
E)  subsidized food services. 
A)  asset purchases. 
B)  life insurance. 
C)  child care assistance programs. 
D)  pension plans. 
E)  subsidized food services.

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

Following an economic trough, the economy will often enter:

Accepted Answer

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

Question 17

Financial plans include setting goal dates, which are:

Accepted Answer

A)  dates in the future when the goals are expected to be achieved. 
B)  dates in the future when the goals will be compared with other goals that have already been achieved. 
C)  dates in the past when the goals were revised and redefined. 
D)  dates in the past when the goals were set. 
E)  dates in the future when the goals will be discussed with family members. 
A)  dates in the future when the goals are expected to be achieved. 
B)  dates in the future when the goals will be compared with other goals that have already been achieved. 
C)  dates in the past when the goals were revised and redefined. 
D)  dates in the past when the goals were set. 
E)  dates in the future when the goals will be discussed with family members.

Question 18

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 19

Which of the following is a reason for a decrease in the average propensity to consume with an increase in income?

Accepted Answer

A)  The amount of savings decreases, and the consumption of necessities increases. 
B)  The expenditure on luxury goods increases, and the amount of savings decreases. 
C)  The expenditure on luxury goods represents only a small portion of income. 
D)  The amount of savings represents only a small portion of income. 
E)  The cost of necessities represents only a small portion of income. 
A)  The amount of savings decreases, and the consumption of necessities increases. 
B)  The expenditure on luxury goods increases, and the amount of savings decreases. 
C)  The expenditure on luxury goods represents only a small portion of income. 
D)  The amount of savings represents only a small portion of income. 
E)  The cost of necessities represents only a small portion of income.

Question 20

Which of the following is a typical effect of an economic recession?

Accepted Answer

A)  An increase in the standard of living 
B)  A decrease in unemployment 
C)  An increase in the expenditure on luxury goods 
D)  A decrease in the value of retirement accounts 
E)  An increase in the value of insurance purchased 
A)  An increase in the standard of living 
B)  A decrease in unemployment 
C)  An increase in the expenditure on luxury goods 
D)  A decrease in the value of retirement accounts 
E)  An increase in the value of insurance purchased

Setting long- and short-term career goals helps in career planning.

_____ is the net total value of all the items that an individual owns.

Which of the following statements about the earning power of an individual is true?

A key determinant of an individual's quality of life is his or her:

Which of the following statements about inflation is true?

Which of the following is an example of a liquid asset?

In _____ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

Individuals who have more formal education _____ than do those with lesser degrees.

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

The three key groups in the economic environment are:

The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.

It is easy to change your partner's financial style, so there is no need for financial planning to resolve conflicts regarding money matters.

Employee benefits may include all of the following EXCEPT:

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

Following an economic trough, the economy will often enter:

Financial plans include setting goal dates, which are:

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

Which of the following is a reason for a decrease in the average propensity to consume with an increase in income?

Which of the following is a typical effect of an economic recession?

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

Setting long- and short-term career goals helps in career planning.

_____ is the net total value of all the items that an individual owns.

Which of the following statements about the earning power of an individual is true?

A key determinant of an individual's quality of life is his or her:

Which of the following statements about inflation is true?

Which of the following is an example of a liquid asset?

In _____ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

Individuals who have more formal education _____ than do those with lesser degrees.

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

The three key groups in the economic environment are:

The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.

It is easy to change your partner's financial style, so there is no need for financial planning to resolve conflicts regarding money matters.

Employee benefits may include all of the following EXCEPT:

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

Following an economic trough, the economy will often enter:

Financial plans include setting goal dates, which are:

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

Which of the following is a reason for a decrease in the average propensity to consume with an increase in income?

Which of the following is a typical effect of an economic recession?

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