Question 1

A debt-payments-to-disposable-income ratio of ____ percent or more is considered to be problematic.

Accepted Answer

A) 10 
B) 14 
C) 15 
D) 36 
A) 10 
B) 14 
C) 15 
D) 36

Question 2

The strictest method of controlling budgets is

Accepted Answer

A) justifying exceptions. 
B) monitoring unexpended balances. 
C) using subordinate budgets. 
D) using the envelope system. 
A) justifying exceptions. 
B) monitoring unexpended balances. 
C) using subordinate budgets. 
D) using the envelope system.

Question 3

The investment assets-to-total assets ratio compares the value of your investment assets with your total assets.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following types of assets is primarily used for the maintenance of a lifestyle?

Accepted Answer

A) Monetary 
B) Tangible 
C) Investment 
D) Capital 
A) Monetary 
B) Tangible 
C) Investment 
D) Capital

Question 5

Assets on the balance sheet are valued at their

Accepted Answer

A) fair market value. 
B) original purchase price. 
C) replacement cost. 
D) sentimental value. 
A) fair market value. 
B) original purchase price. 
C) replacement cost. 
D) sentimental value.

Question 6

A person who has a negative net worth is technically insolvent.

Accepted Answer

A) True 
 B)False

Question 7

Financial planning begins by acquiring a good job that provides a person with enough extra income to manage.

Accepted Answer

A) True 
 B)False

Question 8

Couples should update life insurance coverage,estate transfer plans and change beneficiaries.

Accepted Answer

A) True 
 B)False

Question 9

Jerry and Gloria Collins expect the following cash surpluses or deficits the first three months of the year.
​
 
Their revolving savings fund should be at least

Accepted Answer

A) $100. 
B) $200. 
C) $250. 
D) $350. 
A) $100. 
B) $200. 
C) $250. 
D) $350.

Question 10

The three broad areas of financial plans include financial plans for

Accepted Answer

A) spending. 
B) risk management. 
C) capital accumulation. 
D) All of these. 
A) spending. 
B) risk management. 
C) capital accumulation. 
D) All of these.

Question 11

Your goal in financial planning is to manage your income and wealth in such a way that your goals are met in a suitable manner.

Accepted Answer

A) True 
 B)False

Question 12

Effective financial goals should be stated explicitly in terms of purpose,dollar amounts,and projected date for achievement.

Accepted Answer

A) True 
 B)False

Question 13

Financial planning is the process of developing and implementing short-term plans to achieve financial objectives.

Accepted Answer

A) True 
 B)False

Question 14

Hillary and Justin Palmer have a long-term goal of saving $6,000 for a down payment on a new vehicle they would like to buy in three years.Which of the following is a short-term goal that is most consistent with this long-term goal?

Accepted Answer

A) Buy a new car every two years 
B) Save $2,000 this year 
C) Save $1,000 this year 
D) Accumulate $1,500 for a trip to Florida this year 
A) Buy a new car every two years 
B) Save $2,000 this year 
C) Save $1,000 this year 
D) Accumulate $1,500 for a trip to Florida this year

Question 15

Financial plans should include objectives and goals in which of the following areas?

Accepted Answer

A) Spending 
B) Risk management 
C) Capital accumulation 
D) All of these 
A) Spending 
B) Risk management 
C) Capital accumulation 
D) All of these

Question 16

Disposable personal income is the amount of take-home pay remaining after all deductions are withheld for taxes,insurance,and union dues.

Accepted Answer

A) True 
 B)False

Question 17

Successful financial planning requires identifying the one best investment asset for an individual,then putting all of the individual's surplus into that asset.

Accepted Answer

A) True 
 B)False

Question 18

When a college student saves all summer so that he or she has money available to live on during the school year,he or she is using a revolving savings fund.

Accepted Answer

A) True 
 B)False

Question 19

An important decision for couples is how to manage money.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would be classified as a short-term liability?

Accepted Answer

A) Next month's rent 
B) Credit card debt 
C) Education loans 
D) A car loan 
A) Next month's rent 
B) Credit card debt 
C) Education loans 
D) A car loan

A debt-payments-to-disposable-income ratio of ____ percent or more is considered to be problematic.

The strictest method of controlling budgets is

The investment assets-to-total assets ratio compares the value of your investment assets with your total assets.

Which of the following types of assets is primarily used for the maintenance of a lifestyle?

Assets on the balance sheet are valued at their

A person who has a negative net worth is technically insolvent.

Financial planning begins by acquiring a good job that provides a person with enough extra income to manage.

Couples should update life insurance coverage,estate transfer plans and change beneficiaries.

Jerry and Gloria Collins expect the following cash surpluses or deficits the first three months of the year. Their revolving savings fund should be at least

The three broad areas of financial plans include financial plans for

Your goal in financial planning is to manage your income and wealth in such a way that your goals are met in a suitable manner.

Effective financial goals should be stated explicitly in terms of purpose,dollar amounts,and projected date for achievement.

Financial planning is the process of developing and implementing short-term plans to achieve financial objectives.

Hillary and Justin Palmer have a long-term goal of saving $6,000 for a down payment on a new vehicle they would like to buy in three years.Which of the following is a short-term goal that is most consistent with this long-term goal?

Financial plans should include objectives and goals in which of the following areas?

Disposable personal income is the amount of take-home pay remaining after all deductions are withheld for taxes,insurance,and union dues.

Successful financial planning requires identifying the one best investment asset for an individual,then putting all of the individual's surplus into that asset.

When a college student saves all summer so that he or she has money available to live on during the school year,he or she is using a revolving savings fund.

An important decision for couples is how to manage money.

Which of the following would be classified as a short-term liability?

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 3: Financial Statements,tools,and Budgets

A debt-payments-to-disposable-income ratio of ____ percent or more is considered to be problematic.

The strictest method of controlling budgets is

The investment assets-to-total assets ratio compares the value of your investment assets with your total assets.

Which of the following types of assets is primarily used for the maintenance of a lifestyle?

Assets on the balance sheet are valued at their

A person who has a negative net worth is technically insolvent.

Financial planning begins by acquiring a good job that provides a person with enough extra income to manage.

Couples should update life insurance coverage,estate transfer plans and change beneficiaries.

Jerry and Gloria Collins expect the following cash surpluses or deficits the first three months of the year. ​ Their revolving savings fund should be at least

The three broad areas of financial plans include financial plans for

Your goal in financial planning is to manage your income and wealth in such a way that your goals are met in a suitable manner.

Effective financial goals should be stated explicitly in terms of purpose,dollar amounts,and projected date for achievement.

Financial planning is the process of developing and implementing short-term plans to achieve financial objectives.

Hillary and Justin Palmer have a long-term goal of saving $6,000 for a down payment on a new vehicle they would like to buy in three years.Which of the following is a short-term goal that is most consistent with this long-term goal?

Financial plans should include objectives and goals in which of the following areas?

Disposable personal income is the amount of take-home pay remaining after all deductions are withheld for taxes,insurance,and union dues.

Successful financial planning requires identifying the one best investment asset for an individual,then putting all of the individual's surplus into that asset.

When a college student saves all summer so that he or she has money available to live on during the school year,he or she is using a revolving savings fund.

An important decision for couples is how to manage money.

Which of the following would be classified as a short-term liability?

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Jerry and Gloria Collins expect the following cash surpluses or deficits the first three months of the year. Their revolving savings fund should be at least