Question 1

Describe the S-M-A-R-T approach to financial planning goal setting. Give an example.

Accepted Answer

The answer of Describe the S-M-A-R-T approach to financial planning...

Question 2

The study of how wealth is created and distributed is:

Accepted Answer

A)  financial planning. 
B)  opportunity cost. 
C)  inflation. 
D)  economics. 
E)  a market economy. 
A)  financial planning. 
B)  opportunity cost. 
C)  inflation. 
D)  economics. 
E)  a market economy.

Question 3

The annual price increase for consumer goods and services measured by the Bureau of Labor Statistics is called ________.

Accepted Answer

A)  deflation 
B)  inflation 
C)  the consumer price index 
D)  the price calculator 
E)  the goods index 
A)  deflation 
B)  inflation 
C)  the consumer price index 
D)  the price calculator 
E)  the goods index

Question 4

More recently, the annual price increase for most goods and services as measured by the consumer price index has been less than ____ percent.

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
E)  5 
A)  1 
B)  2 
C)  3 
D)  4 
E)  5

Question 5

One aspect of financial planning is to buy stocks, bonds and mutual funds with the potential for long term growth. Which aspect of financial planning does this deal with?

Accepted Answer

A)  Borrowing 
B)  Spending 
C)  Managing Risk 
D)  Investing 
E)  Retirement and Estate Planning 
A)  Borrowing 
B)  Spending 
C)  Managing Risk 
D)  Investing 
E)  Retirement and Estate Planning

Question 6

If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of computation?

Accepted Answer

A)  Simple interest 
B)  Future value of a single amount 
C)  Future value of a series of deposits 
D)  Present value of a single amount 
E)  Present value of a series of deposits 
A)  Simple interest 
B)  Future value of a single amount 
C)  Future value of a series of deposits 
D)  Present value of a single amount 
E)  Present value of a series of deposits

Question 7

Time value of money refers to changes in consumer spending when inflation occurs.

Accepted Answer

A) True 
 B)False

Question 8

Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds. This problem refers to:

Accepted Answer

A)  inflation risk. 
B)  interest rate risk. 
C)  income risk. 
D)  personal risk. 
E)  liquidity risk. 
A)  inflation risk. 
B)  interest rate risk. 
C)  income risk. 
D)  personal risk. 
E)  liquidity risk.

Question 9

Trade balance is defined as the difference between a country's exports and its imports.

Accepted Answer

A) True 
 B)False

Question 10

The future value of $1,000 deposited a year for 5 years earning 4 percent would be approximately:

Accepted Answer

A)  $5,000 
B)  $5,250 
C)  $5,400 
D)  $6,500 
E)  $8,200 
A)  $5,000 
B)  $5,250 
C)  $5,400 
D)  $6,500 
E)  $8,200

Question 11

The ability to convert financial resources into usable cash with ease is referred to as:

Accepted Answer

A)  bankruptcy. 
B)  liquidity. 
C)  investing. 
D)  saving. 
E)  opportunity cost. 
A)  bankruptcy. 
B)  liquidity. 
C)  investing. 
D)  saving. 
E)  opportunity cost.

Question 12

Higher prices are likely to result from:

Accepted Answer

A)  lower demand by consumers. 
B)  increased production by business. 
C)  lower interest rates. 
D)  increased spending by consumers without increased production. 
E)  an increase in the supply of a product. 
A)  lower demand by consumers. 
B)  increased production by business. 
C)  lower interest rates. 
D)  increased spending by consumers without increased production. 
E)  an increase in the supply of a product.

Question 13

Which of the following would cause prices to drop?

Accepted Answer

A)  Increased taxes on business 
B)  Higher levels of demand by consumers 
C)  A demand for higher wages 
D)  A reduction in the money supply 
E)  Increased production by business 
A)  Increased taxes on business 
B)  Higher levels of demand by consumers 
C)  A demand for higher wages 
D)  A reduction in the money supply 
E)  Increased production by business

Question 14

The main economic influence that determines prices is:

Accepted Answer

A)  the stock market. 
B)  interest rates. 
C)  employment. 
D)  government spending. 
E)  supply and demand. 
A)  the stock market. 
B)  interest rates. 
C)  employment. 
D)  government spending. 
E)  supply and demand.

Question 15

Developing and using a budget is part of which component of financial planning?

Accepted Answer

A)  Retirement and Estate Planning 
B)  Investing 
C)  Spending 
D)  Managing Risk 
E)  Planning 
A)  Retirement and Estate Planning 
B)  Investing 
C)  Spending 
D)  Managing Risk 
E)  Planning

Question 16

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n):

Accepted Answer

A)  insurance prospectus. 
B)  financial plan. 
C)  budget. 
D)  investment forecast. 
E)  statement. 
A)  insurance prospectus. 
B)  financial plan. 
C)  budget. 
D)  investment forecast. 
E)  statement.

Question 17

Lynn Roy knows that if she continues to work full time, it will be difficult for her to get the time off she needs to be able to travel around the world. However, if she continues to work full time she will more easily earn the money she needs to take her trip and still have money left for her living expenses after she gets back from her trip. Which step in the financial planning process does this scenario demonstrate?

Accepted Answer

A)  Determining her current financial situation 
B)  Developing her financial goals 
C)  Identifying alternative courses of action 
D)  Evaluating her alternatives 
E)  Implementing her financial plan 
A)  Determining her current financial situation 
B)  Developing her financial goals 
C)  Identifying alternative courses of action 
D)  Evaluating her alternatives 
E)  Implementing her financial plan

Question 18

A major activity in the planning component of financial planning is:

Accepted Answer

A)  selecting insurance coverage. 
B)  evaluating investment alternatives. 
C)  gaining occupational training and experience. 
D)  allocating current resources for spending. 
E)  establishing a line of credit. 
A)  selecting insurance coverage. 
B)  evaluating investment alternatives. 
C)  gaining occupational training and experience. 
D)  allocating current resources for spending. 
E)  establishing a line of credit.

Question 19

Attempts to increase income are part of the ____________ component of financial planning.

Accepted Answer

A)  planning 
B)  obtaining 
C)  saving 
D)  sharing 
E)  protecting 
A)  planning 
B)  obtaining 
C)  saving 
D)  sharing 
E)  protecting

Question 20

Melanie Walsh likes to go to the movies once a week. When she is at the movies, she generally gets large popcorn and a drink. Melanie wants to be sure that she sets aside money each week so she can continue going to the movies. What type of goal would this be for Melanie?

Accepted Answer

A)  Consumable-products goal 
B)  Durable-products goal 
C)  Intangible goal 
D)  Intermediate goal 
E)  Long term goal 
A)  Consumable-products goal 
B)  Durable-products goal 
C)  Intangible goal 
D)  Intermediate goal 
E)  Long term goal

Describe the S-M-A-R-T approach to financial planning goal setting. Give an example.

The study of how wealth is created and distributed is:

The annual price increase for consumer goods and services measured by the Bureau of Labor Statistics is called ________.

More recently, the annual price increase for most goods and services as measured by the consumer price index has been less than ____ percent.

One aspect of financial planning is to buy stocks, bonds and mutual funds with the potential for long term growth. Which aspect of financial planning does this deal with?

If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of computation?

Time value of money refers to changes in consumer spending when inflation occurs.

Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds. This problem refers to:

Trade balance is defined as the difference between a country's exports and its imports.

The future value of $1,000 deposited a year for 5 years earning 4 percent would be approximately:

The ability to convert financial resources into usable cash with ease is referred to as:

Higher prices are likely to result from:

Which of the following would cause prices to drop?

The main economic influence that determines prices is:

Developing and using a budget is part of which component of financial planning?

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n):

A major activity in the planning component of financial planning is:

Attempts to increase income are part of the ____________ component of financial planning.

Melanie Walsh likes to go to the movies once a week. When she is at the movies, she generally gets large popcorn and a drink. Melanie wants to be sure that she sets aside money each week so she can continue going to the movies. What type of goal would this be for Melanie?

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 1: Personal Finance Basics and the Time Value of Money

Describe the S-M-A-R-T approach to financial planning goal setting. Give an example.

The study of how wealth is created and distributed is:

The annual price increase for consumer goods and services measured by the Bureau of Labor Statistics is called ________.

More recently, the annual price increase for most goods and services as measured by the consumer price index has been less than ____ percent.

One aspect of financial planning is to buy stocks, bonds and mutual funds with the potential for long term growth. Which aspect of financial planning does this deal with?

If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of computation?

Time value of money refers to changes in consumer spending when inflation occurs.

Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds. This problem refers to:

Trade balance is defined as the difference between a country's exports and its imports.

The future value of $1,000 deposited a year for 5 years earning 4 percent would be approximately:

The ability to convert financial resources into usable cash with ease is referred to as:

Higher prices are likely to result from:

Which of the following would cause prices to drop?

The main economic influence that determines prices is:

Developing and using a budget is part of which component of financial planning?

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n):

A major activity in the planning component of financial planning is:

Attempts to increase income are part of the ____________ component of financial planning.

Melanie Walsh likes to go to the movies once a week. When she is at the movies, she generally gets large popcorn and a drink. Melanie wants to be sure that she sets aside money each week so she can continue going to the movies. What type of goal would this be for Melanie?

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters