Question 1

Opportunity costs refer to time, money, and other resources that are given up when a decision is made.

Accepted Answer

A) True 
 B)False

Question 2

What are the six steps in the financial planning process?

Accepted Answer

The answer of What are the six steps in the...

Question 3

Lynn Roy will retire in the next year and has $675,000 in savings and investments and owns her own home that is worth $250,000. Which step in the financial planning process does this situation 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 4

Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

Accepted Answer

A)  measurable terms. 
B)  a realistic perspective. 
C)  specific terms. 
D)  the type of action to be taken. 
E)  a time frame. 
A)  measurable terms. 
B)  a realistic perspective. 
C)  specific terms. 
D)  the type of action to be taken. 
E)  a time frame.

Question 5

Present value is also referred to as compounding.

Accepted Answer

A) True 
 B)False

Question 6

Linda Ashworth is trying to decide whether to keep her money in a savings account or in a mutual fund. What would you tell her to help her analyze her decision?

Accepted Answer

The answer of Linda Ashworth is trying to decide whether...

Question 7

John Gleason is interested in purchasing a 46" rear projection TV for his living room. He knows that right now the TV will cost approximately $1500. John wants to borrow the money to purchase the TV but is a little concerned because he thinks interest rates are going to fall in the future. He is worried that he might get stuck with a loan at a high interest rate. What 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 8

Increased demand for a product or service will usually result in lower prices for the item.

Accepted Answer

A) True 
 B)False

Question 9

What is meant by the term "Time Value of Money?"

Accepted Answer

The answer of What is meant by the term "Time...

Question 10

John Gleason is interested in purchasing a 46" rear projection TV for his living room. He knows that right now the TV will cost approximately $1500. However, John is a little concerned about his job. John is a pilot for Delta Airlines and he thinks it is possible that he could be laid off in the near future. What 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 11

The Fed refers to:

Accepted Answer

A)  government regulation of business. 
B)  Congress. 
C)  the Federal Reserve System. 
D)  the Federal Deposit Insurance Corporation. 
E)  spending by the federal government. 
A)  government regulation of business. 
B)  Congress. 
C)  the Federal Reserve System. 
D)  the Federal Deposit Insurance Corporation. 
E)  spending by the federal government.

Opportunity costs refer to time, money, and other resources that are given up when a decision is made.

What are the six steps in the financial planning process?

Lynn Roy will retire in the next year and has $675,000 in savings and investments and owns her own home that is worth $250,000. Which step in the financial planning process does this situation demonstrate?

Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

Present value is also referred to as compounding.

Linda Ashworth is trying to decide whether to keep her money in a savings account or in a mutual fund. What would you tell her to help her analyze her decision?

Increased demand for a product or service will usually result in lower prices for the item.

What is meant by the term "Time Value of Money?"

The Fed refers to:

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

Opportunity costs refer to time, money, and other resources that are given up when a decision is made.

What are the six steps in the financial planning process?

Lynn Roy will retire in the next year and has $675,000 in savings and investments and owns her own home that is worth $250,000. Which step in the financial planning process does this situation demonstrate?

Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

Present value is also referred to as compounding.

Linda Ashworth is trying to decide whether to keep her money in a savings account or in a mutual fund. What would you tell her to help her analyze her decision?

Increased demand for a product or service will usually result in lower prices for the item.

What is meant by the term "Time Value of Money?"

The Fed refers to:

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