Question 1

What are the six steps in the financial planning process?

Accepted Answer

Answers will vary

Question 2

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. C

Question 3

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.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 C

Question 4

Analyzing your current financial position is a part of the first stage of the financial planning process.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Lynn Roy wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns.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 7

Most decisions have only a few alternatives from which to choose.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

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 10

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 11

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 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

The first step of the financial planning process is to:

Accepted Answer

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

Question 14

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 15

A financial plan is another name for a budget.

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) deflation 
B) inflation 
C) the consumer price index 
D) the price calculator 
E) goods and all of the above 
A) deflation 
B) inflation 
C) the consumer price index 
D) the price calculator 
E) goods and all of the above

Question 19

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 20

____________ risk refers to the danger of lost buying power during times of rising prices.

Accepted Answer

A) Trade-off 
B) Economic 
C) Personal 
D) Inflation 
E) Interest-rate 
A) Trade-off 
B) Economic 
C) Personal 
D) Inflation 
E) Interest-rate

What are the six steps in the financial planning process?

The main goal of personal financial planning is:

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which aspect of financial planning does this deal with?

Analyzing your current financial position is a part of the first stage of the financial planning process.

Which of the following would cause prices to drop?

Lynn Roy wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns.Which step in the financial planning Process does this situation demonstrate?

Most decisions have only a few alternatives from which to choose.

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

The main economic influence that determines prices is:

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?

Higher prices are likely to result from:

The first step of the financial planning process is to:

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

A financial plan is another name for a budget.

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

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

____________ risk refers to the danger of lost buying power during times of rising prices.

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

What are the six steps in the financial planning process?

The main goal of personal financial planning is:

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which aspect of financial planning does this deal with?

Analyzing your current financial position is a part of the first stage of the financial planning process.

Which of the following would cause prices to drop?

Lynn Roy wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns.Which step in the financial planning Process does this situation demonstrate?

Most decisions have only a few alternatives from which to choose.

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

The main economic influence that determines prices is:

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?

Higher prices are likely to result from:

The first step of the financial planning process is to:

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

A financial plan is another name for a budget.

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

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

____________ risk refers to the danger of lost buying power during times of rising prices.

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