Question 1

Which of the following is an example of opportunity cost?

Accepted Answer

A) Renting an apartment near school 
B) Saving money instead of taking a vacation 
C) Setting aside money for paying income tax 
D) Purchasing automobile insurance 
E) Using a personal computer for financial planning 
A) Renting an apartment near school 
B) Saving money instead of taking a vacation 
C) Setting aside money for paying income tax 
D) Purchasing automobile insurance 
E) Using a personal computer for financial planning

Question 2

Which of the following would cause consumer prices to drop?

Accepted Answer

A) Increased consumer borrowing 
B) Higher spending by consumers 
C) A demand for higher wages 
D) Hidden inflation 
E) Increased supply by business without increased consumer demand. 
A) Increased consumer borrowing 
B) Higher spending by consumers 
C) A demand for higher wages 
D) Hidden inflation 
E) Increased supply by business without increased consumer demand.

Question 3

Inflation risk may include changes in buying power and:

Accepted Answer

A)  rising prices. 
B) falling prices 
C) decisions to buy later 
D) decisions to buy now. 
E) All of these. 
A)  rising prices. 
B) falling prices 
C) decisions to buy later 
D) decisions to buy now. 
E) All of these.

Question 4

Higher consumer prices are likely to be accompanied by:

Accepted Answer

A) lower union wages. 
B) lower interest rates. 
C) lower production costs. 
D) higher interest rates. 
E) higher exports. 
A) lower union wages. 
B) lower interest rates. 
C) lower production costs. 
D) higher interest rates. 
E) higher exports.

Question 5

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.

Question 6

One aspect of financial planning is to make wise decisions using a plan as to what to purchase and when to purchase it.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 7

Financial planning information sources generally do not include:

Accepted Answer

A)  Print and Media 
B) Financial Experts 
C)  Financial Institutions 
D) Personal Friends 
E) Digital Sources 
A)  Print and Media 
B) Financial Experts 
C)  Financial Institutions 
D) Personal Friends 
E) Digital Sources

Question 8

Which of the following is usually considered a long-term financial strategy?

Accepted Answer

A) Creating a budget 
B) Using savings to pay off a loan early 
C) Renting an apartment to save for the purchase of a home 
D) Investing in a mutual fund to accumulate retirement funds 
E) Purchasing auto insurance to cover the needs of dependents 
A) Creating a budget 
B) Using savings to pay off a loan early 
C) Renting an apartment to save for the purchase of a home 
D) Investing in a mutual fund to accumulate retirement funds 
E) Purchasing auto insurance to cover the needs of dependents

Question 9

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 10

The future value of $1,000 deposited each 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

A decrease in the demand for a product or service may result in unemployment from staff reduction.

Accepted Answer

A) True 
 B)False

Question 12

The success of a financial plan will be determined by:

Accepted Answer

A) the amount of debts owed. 
B) the stage of the adult life cycle. 
C) a person's tax status. 
D) the individual's financial habits. 
E) current economic conditions. 
A) the amount of debts owed. 
B) the stage of the adult life cycle. 
C) a person's tax status. 
D) the individual's financial habits. 
E) current economic conditions.

Question 13

Measuring risk associated with making most financial decisions is difficult because of what factor(s)?

Accepted Answer

A) Inflation risk 
B) Interest Rate risk 
C) Personal risk 
D) Liquidity risk 
E) All of these. 
A) Inflation risk 
B) Interest Rate risk 
C) Personal risk 
D) Liquidity risk 
E) All of these.

Question 14

Attempts to increase financial resources 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 15

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 16

The main economic influence that causes inflation is:

Accepted Answer

A) Changes in the stock market. 
B) Decreases in interest rates. 
C) Increases in employment. 
D) Decreases in government spending. 
E) Increases in demand without increases in supply. 
A) Changes in the stock market. 
B) Decreases in interest rates. 
C) Increases in employment. 
D) Decreases in government spending. 
E) Increases in demand without increases in supply.

Question 17

The stages in the family and financial needs of an adult are called the:

Accepted Answer

A) financial planning process. 
B) budgeting procedure. 
C) personal economic cycle. 
D) adult life cycle. 
E) tax planning process. 
A) financial planning process. 
B) budgeting procedure. 
C) personal economic cycle. 
D) adult life cycle. 
E) tax planning process.

Question 18

Resources for financial planning can be found from:

Accepted Answer

A) print and media. 
B) digital sources. 
C) financial institutions. 
D) financial experts. 
E) All of these. 
A) print and media. 
B) digital sources. 
C) financial institutions. 
D) financial experts. 
E) All of these.

Question 19

What are the eight Components of Financial Planning?

Accepted Answer

The main Components of Financi

Question 20

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

Common risks are inflation risk,interest

Which of the following is an example of opportunity cost?

Which of the following would cause consumer prices to drop?

Inflation risk may include changes in buying power and:

Higher consumer prices are likely to be accompanied by:

The Fed refers to:

One aspect of financial planning is to make wise decisions using a plan as to what to purchase and when to purchase it.Which aspect of financial planning does this deal with?

Financial planning information sources generally do not include:

Which of the following is usually considered a long-term financial strategy?

Higher interest rates can be caused by:

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

A decrease in the demand for a product or service may result in unemployment from staff reduction.

The success of a financial plan will be determined by:

Measuring risk associated with making most financial decisions is difficult because of what factor(s)?

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

The main economic influence that causes inflation is:

The stages in the family and financial needs of an adult are called the:

Resources for financial planning can be found from:

What are the eight Components 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?

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 Stock

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

Which of the following is an example of opportunity cost?

Which of the following would cause consumer prices to drop?

Inflation risk may include changes in buying power and:

Higher consumer prices are likely to be accompanied by:

The Fed refers to:

One aspect of financial planning is to make wise decisions using a plan as to what to purchase and when to purchase it.Which aspect of financial planning does this deal with?

Financial planning information sources generally do not include:

Which of the following is usually considered a long-term financial strategy?

Higher interest rates can be caused by:

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

A decrease in the demand for a product or service may result in unemployment from staff reduction.

The success of a financial plan will be determined by:

Measuring risk associated with making most financial decisions is difficult because of what factor(s)?

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

The main economic influence that causes inflation is:

The stages in the family and financial needs of an adult are called the:

Resources for financial planning can be found from:

What are the eight Components 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?

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters