Question 1

Your personal value system will shape your attitude toward money and wealth accumulation.

Accepted Answer

A) True 
 B)False

Question 2

Typically people with the lowest incomes tend to be

Accepted Answer

A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless. 
A)  educated. 
B)  very old. 
C)  very young or very old. 
D)  middle aged. 
E)  childless.

Question 3

Debt is another word for liability.

Accepted Answer

A) True 
 B)False

Question 4

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

Accepted Answer

A) True 
 B)False

Question 5

The individual consumer is

Accepted Answer

A)  a member of the business group. 
B)  the party around which the personal financial environment is centered. 
C)  an important force in government. 
D)  an advocacy group. 
E)  relatively unimportant to business or government. 
A)  a member of the business group. 
B)  the party around which the personal financial environment is centered. 
C)  an important force in government. 
D)  an advocacy group. 
E)  relatively unimportant to business or government.

Question 6

Personal financial management is important because it

Accepted Answer

A)  controls inflation. 
B)  limits consumption. 
C)  uses money as an end. 
D)  makes personal financial goals easier to achieve. 
E)  lessens economic differences among individuals. 
A)  controls inflation. 
B)  limits consumption. 
C)  uses money as an end. 
D)  makes personal financial goals easier to achieve. 
E)  lessens economic differences among individuals.

Question 7

Employee benefits may include

Accepted Answer

A)  retirement plans 
B)  health insurance 
C)  employee discounts 
D)  tuition reimbursements 
E)  all of the above 
A)  retirement plans 
B)  health insurance 
C)  employee discounts 
D)  tuition reimbursements 
E)  all of the above

Question 8

The government employs monetary and fiscal policy to ensure the economy always remains stable.

Accepted Answer

A) True 
 B)False

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Disney stock | Your car] would be considered a financial asset.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 10

Tangible assets are earning assets that are held for the returns they promise.

Accepted Answer

A) True 
 B)False

Question 11

The last step in the financial planning process is to

Accepted Answer

A)  develop financial plans and strategies to achieve goals. 
B)  use financial statements to evaluate results of plans and budgets,taking corrective action as required. 
C)  implement financial plans and strategies. 
D)  redefine goals and revise plans and strategies as personal circumstances change 
E)  periodically develop and implement budgets to monitor and control progress toward goals. 
A)  develop financial plans and strategies to achieve goals. 
B)  use financial statements to evaluate results of plans and budgets,taking corrective action as required. 
C)  implement financial plans and strategies. 
D)  redefine goals and revise plans and strategies as personal circumstances change 
E)  periodically develop and implement budgets to monitor and control progress toward goals.

Question 12

Current consumption is inversely related to saving for the future.

Accepted Answer

A) True 
 B)False

Question 13

The financial crisis of 2008 and 2009 was the first depression the U.S.has experienced in 75 years.

Accepted Answer

A) True 
 B)False

Question 14

Spending for your child's private-school education is an example of deferred consumption.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The Consumer Price Index is a measure of [unemployment | inflation].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 16

The four stages of an economic cycle would not include

Accepted Answer

A)  depression. 
B)  expansion. 
C)  recession. 
D)  recovery. 
E)  stagnation. 
A)  depression. 
B)  expansion. 
C)  recession. 
D)  recovery. 
E)  stagnation.

Question 17

Employee benefits can typically be transferred to a new job when one changes employers.

Accepted Answer

A) True 
 B)False

Question 18

A personal computer could not be used to

Accepted Answer

A)  prepare detailed budgets. 
B)  analyze investment possibilities. 
C)  store and retrieve financial information efficiently. 
D)  make financial decisions. 
E)  keep insurance coverage inventories. 
A)  prepare detailed budgets. 
B)  analyze investment possibilities. 
C)  store and retrieve financial information efficiently. 
D)  make financial decisions. 
E)  keep insurance coverage inventories.

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A decrease in the gross domestic product would indicate that our economy is [growing | stagnating].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 20

The term most closely associated with quality of life is

Accepted Answer

A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money. 
A)  wealth. 
B)  consumption. 
C)  education. 
D)  standard of living. 
E)  money.

Your personal value system will shape your attitude toward money and wealth accumulation.

Typically people with the lowest incomes tend to be

Debt is another word for liability.

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

The individual consumer is

Personal financial management is important because it

Employee benefits may include

The government employs monetary and fiscal policy to ensure the economy always remains stable.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Disney stock | Your car] would be considered a financial asset.

Tangible assets are earning assets that are held for the returns they promise.

The last step in the financial planning process is to

Current consumption is inversely related to saving for the future.

The financial crisis of 2008 and 2009 was the first depression the U.S.has experienced in 75 years.

Spending for your child's private-school education is an example of deferred consumption.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The Consumer Price Index is a measure of [unemployment | inflation].

The four stages of an economic cycle would not include

Employee benefits can typically be transferred to a new job when one changes employers.

A personal computer could not be used to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A decrease in the gross domestic product would indicate that our economy is [growing | stagnating].

The term most closely associated with quality of life is

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

Your personal value system will shape your attitude toward money and wealth accumulation.

Typically people with the lowest incomes tend to be

Debt is another word for liability.

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

The individual consumer is

Personal financial management is important because it

Employee benefits may include

The government employs monetary and fiscal policy to ensure the economy always remains stable.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Disney stock | Your car] would be considered a financial asset.

Tangible assets are earning assets that are held for the returns they promise.

The last step in the financial planning process is to

Current consumption is inversely related to saving for the future.

The financial crisis of 2008 and 2009 was the first depression the U.S.has experienced in 75 years.

Spending for your child's private-school education is an example of deferred consumption.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The Consumer Price Index is a measure of [unemployment | inflation].

The four stages of an economic cycle would not include

Employee benefits can typically be transferred to a new job when one changes employers.

A personal computer could not be used to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A decrease in the gross domestic product would indicate that our economy is [growing | stagnating].

The term most closely associated with quality of life is

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters