Question 1

Lenders benefit more than borrowers in times of high inflation.

Accepted Answer

A) True 
 B)False

Question 2

Opportunity costs refer to what a person gives up when making a decision.

Accepted Answer

A) True 
 B)False

Question 3

The changing cost of money is referred to as ____________ risk.

Accepted Answer

A)  interest-rate 
B)  inflation 
C)  economic 
D)  trade-off 
E)  personal 
A)  interest-rate 
B)  inflation 
C)  economic 
D)  trade-off 
E)  personal

Question 4

Developing and using a budget is part of the "obtaining" component of financial planning.

Accepted Answer

A) True 
 B)False

Question 5

What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Accepted Answer

The answer of What types of risks are commonly associated...

Question 6

John is planning to go to graduate school in a program that will take three years. John wants to have available $10,000 available each year for his school and living expenses. If he earns 6% on his investments, how much must be deposited at the start of his studies for him to withdraw $10,000 a year for three years?

Accepted Answer

A)  $10,000 
B)  $18,390 
C)  $26,730 
D)  $29,100 
E)  $30,000 
A)  $10,000 
B)  $18,390 
C)  $26,730 
D)  $29,100 
E)  $30,000

Question 7

Using the services of financial institutions will be most evident in your effort to:

Accepted Answer

A)  develop financial goals. 
B)  evaluate and revise your actions. 
C)  analyze your current personal and financial situation. 
D)  implement the financial plan. 
E)  create a financial plan of action. 
A)  develop financial goals. 
B)  evaluate and revise your actions. 
C)  analyze your current personal and financial situation. 
D)  implement the financial plan. 
E)  create a financial plan of action.

Question 8

An example of a personal opportunity cost would be:

Accepted Answer

A)  interest lost by using savings to make a purchase. 
B)  higher earnings on savings that must be kept on deposit a minimum of six months. 
C)  lost wages due to continuing as a full-time student. 
D)  time comparing several brands of personal computers. 
E)  having to pay a tax penalty due to not having enough withheld from your monthly salary. 
A)  interest lost by using savings to make a purchase. 
B)  higher earnings on savings that must be kept on deposit a minimum of six months. 
C)  lost wages due to continuing as a full-time student. 
D)  time comparing several brands of personal computers. 
E)  having to pay a tax penalty due to not having enough withheld from your monthly salary.

Question 9

Developing financial goals is the ______ step in the financial planning process.

Accepted Answer

A)  first 
B)  second 
C)  third 
D)  fourth 
E)  fifth 
A)  first 
B)  second 
C)  third 
D)  fourth 
E)  fifth

Question 10

Economics is the study of using money to achieve financial goals.

Accepted Answer

A) True 
 B)False

Question 11

The uncertainty associated with decision making is referred to as:

Accepted Answer

A)  opportunity cost. 
B)  selection of alternatives. 
C)  financial goals. 
D)  personal values. 
E)  risk. 
A)  opportunity cost. 
B)  selection of alternatives. 
C)  financial goals. 
D)  personal values. 
E)  risk.

Question 12

The financial planning process concludes with efforts to:

Accepted Answer

A)  develop financial goals. 
B)  create a financial plan of action. 
C)  analyze your current personal and financial situation. 
D)  review the financial plan. 
E)  review and revise your actions. 
A)  develop financial goals. 
B)  create a financial plan of action. 
C)  analyze your current personal and financial situation. 
D)  review the financial plan. 
E)  review and revise your actions.

Question 13

The main goal of personal financial planning is:

Accepted Answer

A)  saving and investing for future needs. 
B)  reducing a person's tax liability. 
C)  achieving personal economic satisfaction. 
D)  spending to achieve financial objectives. 
E)  saving, spending, and borrowing based on current needs. 
A)  saving and investing for future needs. 
B)  reducing a person's tax liability. 
C)  achieving personal economic satisfaction. 
D)  spending to achieve financial objectives. 
E)  saving, spending, and borrowing based on current needs.

Question 14

If you desire your money to double in 6 years, what rate of return would you need to earn?

Accepted Answer

A)  6 percent 
B)  8 percent 
C)  9 percent 
D)  10 percent 
E)  12 percent 
A)  6 percent 
B)  8 percent 
C)  9 percent 
D)  10 percent 
E)  12 percent

Question 15

Higher interest rates can be caused by:

Accepted Answer

A)  a lower money supply. 
B)  an increase in the money supply. 
C)  a decrease in consumer borrowing. 
D)  lower government spending. 
E)  increased saving and investing by consumers. 
A)  a lower money supply. 
B)  an increase in the money supply. 
C)  a decrease in consumer borrowing. 
D)  lower government spending. 
E)  increased saving and investing by consumers.

Question 16

Lynn Roy wants to travel around the world. Lynn Roy has several options she can pursue. She can continue to work full time to earn the money she needs for her trip. She can work part time so that she can still earn some money but have the time necessary to complete her trip. She can take full retirement so that she has all the time necessary to complete 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 17

People are commonly overwhelmed by the many influences on personal financial decisions. What are the factors affecting financial planning?

Accepted Answer

The answer of People are commonly overwhelmed by the many...

Question 18

John Gleason is interested in purchasing a 46" rear projection TV for his living room. John knows that right now the TV will cost approximately $1500. John is not sure he can afford this TV right now but is worried that if he waits, the cost of the TV will rise to $1800. Which type of risk is John worried about?

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 19

____________ goals relate to personal relationships, health, and education.

Accepted Answer

A)  Durable-product 
B)  Short-term 
C)  Consumable-product 
D)  Intangible-purchase 
E)  Intermediate 
A)  Durable-product 
B)  Short-term 
C)  Consumable-product 
D)  Intangible-purchase 
E)  Intermediate

Question 20

When prices are increasing at a rate of 6 percent, the cost of products would double in about how many years?

Accepted Answer

A)  7.2 years 
B)  10 years 
C)  6 years 
D)  12 years 
E)  18 years 
A)  7.2 years 
B)  10 years 
C)  6 years 
D)  12 years 
E)  18 years

Lenders benefit more than borrowers in times of high inflation.

Opportunity costs refer to what a person gives up when making a decision.

The changing cost of money is referred to as ____________ risk.

Developing and using a budget is part of the "obtaining" component of financial planning.

What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Using the services of financial institutions will be most evident in your effort to:

An example of a personal opportunity cost would be:

Developing financial goals is the ______ step in the financial planning process.

Economics is the study of using money to achieve financial goals.

The uncertainty associated with decision making is referred to as:

The financial planning process concludes with efforts to:

The main goal of personal financial planning is:

If you desire your money to double in 6 years, what rate of return would you need to earn?

Higher interest rates can be caused by:

People are commonly overwhelmed by the many influences on personal financial decisions. What are the factors affecting financial planning?

____________ goals relate to personal relationships, health, and education.

When prices are increasing at a rate of 6 percent, the cost of products would double in about how many years?

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

Lenders benefit more than borrowers in times of high inflation.

Opportunity costs refer to what a person gives up when making a decision.

The changing cost of money is referred to as ____________ risk.

Developing and using a budget is part of the "obtaining" component of financial planning.

What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Using the services of financial institutions will be most evident in your effort to:

An example of a personal opportunity cost would be:

Developing financial goals is the ______ step in the financial planning process.

Economics is the study of using money to achieve financial goals.

The uncertainty associated with decision making is referred to as:

The financial planning process concludes with efforts to:

The main goal of personal financial planning is:

If you desire your money to double in 6 years, what rate of return would you need to earn?

Higher interest rates can be caused by:

People are commonly overwhelmed by the many influences on personal financial decisions. What are the factors affecting financial planning?

____________ goals relate to personal relationships, health, and education.

When prices are increasing at a rate of 6 percent, the cost of products would double in about how many years?

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