Question 1

Ideally,retirement planning should begin

Accepted Answer

A)  during the year before retirement. 
B)  when the last child has left home. 
C)  as soon as the mortgage is paid off. 
D)  when you get married. 
E)  none of these. 
A)  during the year before retirement. 
B)  when the last child has left home. 
C)  as soon as the mortgage is paid off. 
D)  when you get married. 
E)  none of these.

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-"1 want to accumulate a comfortable retirement fund" [would | would not] be a specific financial goal.

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 3

____ tends to increase and then decrease over the life cycle.

Accepted Answer

A)  Debt 
B)  Income 
C)  Emergency funds 
D)  a and b 
E)  a,b,and c 
A)  Debt 
B)  Income 
C)  Emergency funds 
D)  a and b 
E)  a,b,and c

Question 4

The need for financial planning declines as your income increases.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

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 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The primary determinant of your standard of living is your [wealth | propensity to consume].

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 7

The most important financial planning for young people concerns

Accepted Answer

A)  career. 
B)  insurance. 
C)  investment. 
D)  taxes. 
E)  retirement. 
A)  career. 
B)  insurance. 
C)  investment. 
D)  taxes. 
E)  retirement.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Income tends to [increase | decrease] between the ages of 55 and 75.

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 9

Short-term goals include things one wants to achieve in a year or less.

Accepted Answer

A) True 
 B)False

Question 10

Generally,as income rises,the average propensity to consume

Accepted Answer

A)  stabilizes. 
B)  drops to zero. 
C)  increases. 
D)  becomes erratic. 
E)  decreases. 
A)  stabilizes. 
B)  drops to zero. 
C)  increases. 
D)  becomes erratic. 
E)  decreases.

Question 11

Financial planning is a continuing,life-long process.

Accepted Answer

A) True 
 B)False

Question 12

Sam and Lele are in their late 20s with 3 young children.Their most important financial planning concerns would probably include all of the following except

Accepted Answer

A)  asset acquisition planning. 
B)  liability and insurance planning. 
C)  retirement and estate planning. 
D)  savings and investment planning. 
E)  employee benefit planning. 
A)  asset acquisition planning. 
B)  liability and insurance planning. 
C)  retirement and estate planning. 
D)  savings and investment planning. 
E)  employee benefit planning.

Question 13

Your income is directly related to your

Accepted Answer

A)  geographic location. 
B)  age. 
C)  education. 
D)  all of these 
E)  none of these 
A)  geographic location. 
B)  age. 
C)  education. 
D)  all of these 
E)  none of these

Question 14

Financial assets are paper assets,such as savings accounts and securities.

Accepted Answer

A) True 
 B)False

Question 15

A primary determinant of your quality of life is

Accepted Answer

A)  a tax bill. 
B)  tangible property. 
C)  wealth. 
D)  motivation. 
E)  income potential. 
A)  a tax bill. 
B)  tangible property. 
C)  wealth. 
D)  motivation. 
E)  income potential.

Question 16

Typically,higher levels of education are rewarded with higher income over the lifetime.

Accepted Answer

A) True 
 B)False

Question 17

About 20% of Americans say retirement planning is their most pressing financial concern.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The Federal Reserve's actions after the financial crisis of 2008 and 2009 resulted in [reduced interest rate | higher interest rates].

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 19

The financial crisis of 2008 and 2009 is best characterized as a ______________

Accepted Answer

A)  Recession 
B)  Depression 
C)  Downturn 
D)  Business trough 
E)  Meltdown 
A)  Recession 
B)  Depression 
C)  Downturn 
D)  Business trough 
E)  Meltdown

Question 20

Accumulating wealth for later years is called estate planning.

Accepted Answer

A) True 
 B)False

Ideally,retirement planning should begin

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -"1 want to accumulate a comfortable retirement fund" [would | would not] be a specific financial goal.

____ tends to increase and then decrease over the life cycle.

The need for financial planning declines as your income increases.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The primary determinant of your standard of living is your [wealth | propensity to consume].

The most important financial planning for young people concerns

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Income tends to [increase | decrease] between the ages of 55 and 75.

Short-term goals include things one wants to achieve in a year or less.

Generally,as income rises,the average propensity to consume

Financial planning is a continuing,life-long process.

Sam and Lele are in their late 20s with 3 young children.Their most important financial planning concerns would probably include all of the following except

Your income is directly related to your

Financial assets are paper assets,such as savings accounts and securities.

A primary determinant of your quality of life is

Typically,higher levels of education are rewarded with higher income over the lifetime.

About 20% of Americans say retirement planning is their most pressing financial concern.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The Federal Reserve's actions after the financial crisis of 2008 and 2009 resulted in [reduced interest rate | higher interest rates].

The financial crisis of 2008 and 2009 is best characterized as a ______________

Accumulating wealth for later years is called estate planning.

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

Ideally,retirement planning should begin

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -"1 want to accumulate a comfortable retirement fund" [would | would not] be a specific financial goal.

____ tends to increase and then decrease over the life cycle.

The need for financial planning declines as your income increases.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The financial crisis of 2008 and 2009 is best characterized as a [recession | depression].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The primary determinant of your standard of living is your [wealth | propensity to consume].

The most important financial planning for young people concerns

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Income tends to [increase | decrease] between the ages of 55 and 75.

Short-term goals include things one wants to achieve in a year or less.

Generally,as income rises,the average propensity to consume

Financial planning is a continuing,life-long process.

Sam and Lele are in their late 20s with 3 young children.Their most important financial planning concerns would probably include all of the following except

Your income is directly related to your

Financial assets are paper assets,such as savings accounts and securities.

A primary determinant of your quality of life is

Typically,higher levels of education are rewarded with higher income over the lifetime.

About 20% of Americans say retirement planning is their most pressing financial concern.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The Federal Reserve's actions after the financial crisis of 2008 and 2009 resulted in [reduced interest rate | higher interest rates].

The financial crisis of 2008 and 2009 is best characterized as a ______________

Accumulating wealth for later years is called estate planning.

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