Question 1

Opportunity cost refers to:

Accepted Answer

A) money needed for major consumer purchases. 
B) what a person gives up by making a choice. 
C) the amount paid for taxes when a purchase is made. 
D) current interest rates. 
E) evaluating different alternatives for financial decisions. 
A) money needed for major consumer purchases. 
B) what a person gives up by making a choice. 
C) the amount paid for taxes when a purchase is made. 
D) current interest rates. 
E) evaluating different alternatives for financial decisions.

Question 2

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

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

What are the main components of personal financial planning?

Accepted Answer

Personal financial planning is a process

Question 5

John Dean has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow.What type of goal would this be for John?

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

Question 6

Lynn Roy has decided to take retirement from her job and use the time she has earned to travel around the world.She has decided to start her trip around the world in Europe by train and bus and will use her savings to pay for her trip.Which step in the financial planning process does this scenario demonstrate?

Accepted Answer

A) Developing her financial goals 
B) Identifying alternative courses of action 
C) Evaluating her alternatives 
D) Implementing her financial plan 
E) Reviewing and revising her financial plan 
A) Developing her financial goals 
B) Identifying alternative courses of action 
C) Evaluating her alternatives 
D) Implementing her financial plan 
E) Reviewing and revising her financial plan

Question 7

Inflation reduces the buying power of money.

Accepted Answer

A) True 
 B)False

Question 8

The success of a financial plan will be determined by:

Accepted Answer

A) the amount of income available. 
B) the stage of the adult life cycle. 
C) a person's tax status. 
D) how resources are useD. 
E) current economic conditions. 
A) the amount of income available. 
B) the stage of the adult life cycle. 
C) a person's tax status. 
D) how resources are useD. 
E) current economic conditions.

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

If you put $1,000 in a saving account and make no further deposits,what type of calculation would provide you with the value of the account in 20 years?

Accepted Answer

A) future value of a single amount 
B) simple interest 
C) present value of a single amount 
D) present value of a series of deposits 
E) future value of a series of deposits 
A) future value of a single amount 
B) simple interest 
C) present value of a single amount 
D) present value of a series of deposits 
E) future value of a series of deposits

Question 11

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 12

When an individual makes a purchase without considering the financial consequences of that purchase,ignores the ______________ aspect of financial planning.

Accepted Answer

A) borrowing 
B) risk Management 
C) spending 
D) retirement and Estate Planning 
E) obtaining 
A) borrowing 
B) risk Management 
C) spending 
D) retirement and Estate Planning 
E) obtaining

Question 13

Interest on savings is calculated by multiplying the money amount times the opportunity cost times the annual interest rate.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

Accepted Answer

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

Question 17

Paul Carter is 43 years old,married and has three children,ages 13,10 and 5.Which influence on financial planning does this demonstrate?

Accepted Answer

A) Adult Life Cycle 
B) Economic Factors 
C) Global Influences 
D) Opportunity Costs 
E) None of the above 
A) Adult Life Cycle 
B) Economic Factors 
C) Global Influences 
D) Opportunity Costs 
E) None of the above

Question 18

Lynn Roy's goal has been to travel around the world.She has now been traveling for six months and she has decided she is a little tired of living out of a suitcase.She has decided to go home,look for a part time job and take shorter trips to locations around the world that appeal to her.Which step in the financial planning process does this scenario most likely demonstrate?

Accepted Answer

A) Developing her financial goals 
B) Identifying alternative courses of action 
C) Evaluating her alternatives 
D) Implementing her financial plan 
E) Reviewing and revising her financial plan 
A) Developing her financial goals 
B) Identifying alternative courses of action 
C) Evaluating her alternatives 
D) Implementing her financial plan 
E) Reviewing and revising her financial plan

Question 19

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 20

Future value calculations involve:

Accepted Answer

A) discounting. 
B) add-on interest. 
C) compounding. 
D) simple interest. 
E) an annuity. 
A) discounting. 
B) add-on interest. 
C) compounding. 
D) simple interest. 
E) an annuity.

Opportunity cost refers to:

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

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

What are the main components of personal financial planning?

John Dean has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow.What type of goal would this be for John?

Inflation reduces the buying power of money.

The success of a financial plan will be determined by:

Higher interest rates can be caused by:

If you put $1,000 in a saving account and make no further deposits,what type of calculation would provide you with the value of the account in 20 years?

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

When an individual makes a purchase without considering the financial consequences of that purchase,ignores the ______________ aspect of financial planning.

Interest on savings is calculated by multiplying the money amount times the opportunity cost times the annual interest rate.

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?

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

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

Paul Carter is 43 years old,married and has three children,ages 13,10 and 5.Which influence on financial planning does this demonstrate?

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

Future value calculations involve:

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 cost refers to:

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

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

What are the main components of personal financial planning?

John Dean has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow.What type of goal would this be for John?

Inflation reduces the buying power of money.

The success of a financial plan will be determined by:

Higher interest rates can be caused by:

If you put $1,000 in a saving account and make no further deposits,what type of calculation would provide you with the value of the account in 20 years?

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

When an individual makes a purchase without considering the financial consequences of that purchase,ignores the ______________ aspect of financial planning.

Interest on savings is calculated by multiplying the money amount times the opportunity cost times the annual interest rate.

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?

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

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

Paul Carter is 43 years old,married and has three children,ages 13,10 and 5.Which influence on financial planning does this demonstrate?

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

Future value calculations involve:

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