Exam 1: Understanding the Financial Planning Process

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your level of formal education is a [controllable | non controllable] factor that has a considerable effect on your income.

(Multiple Choice)

5.0/5

(35)

Question 121

Your house is an example of a tangible asset.

(True/False)

4.8/5

(38)

Question 122

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

(True/False)

4.8/5

(31)

Question 123

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or group.

(True/False)

4.9/5

(34)

Question 124

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

(True/False)

4.7/5

(33)

Question 125

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

(True/False)

5.0/5

(27)

Question 126

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Most people graduate from college with [no | some] debts.

(Multiple Choice)

4.8/5

(35)

Question 127

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Typically,your salary will be [higher | lower] if you live in a large metropolitan area rather than a small town or rural area.

(Multiple Choice)

4.9/5

(41)

Question 128

A good financial plan completed when one is in their 30s will typically last a lifetime.

(True/False)

4.9/5

(35)

Question 129

The amount of money we set aside for future consumption will be determined by

(Multiple Choice)

4.9/5

(36)

Question 130

Most families find it difficult to discuss money matters.

(True/False)

4.9/5

(38)

Question 131

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

(True/False)

4.9/5

(46)

Question 132

The most effective way to achieve financial objectives is through financial planning.

(True/False)

4.9/5

(50)

Question 133

____ is the financial goal most people think is least important.

(Multiple Choice)

4.9/5

(38)

Question 134

Financial planning can improve your standard of living.

(True/False)

4.8/5

(35)

Question 135

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -It is [fairly simple | impossible] to find a financial plan that will work for everyone.

(Multiple Choice)

5.0/5

(33)

Question 136

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your [level of education | age] will usually have no effect on your earning capacity.

(Multiple Choice)

4.7/5

(37)

Question 137

Consumer choices ultimately determine the kinds of goods and services businesses will provide.

(True/False)

4.8/5

(44)

Question 138

An economy will usually go into a _________ after a peak.

(Multiple Choice)

4.8/5

(31)

Question 139

Government controls consumers and businesses by regulation and taxation.

(True/False)

4.9/5

(41)

Question 140

Showing 121 - 140 of 142

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your level of formal education is a [controllable | non controllable] factor that has a considerable effect on your income.

Your house is an example of a tangible asset.

Businesses are a key part of the circular flow of income that sustains our free enterprise system.

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or group.

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

The Consumer Price Index (CPI)is the amount of goods and services each dollar buys at a given point in time.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Most people graduate from college with [no | some] debts.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Typically,your salary will be [higher | lower] if you live in a large metropolitan area rather than a small town or rural area.

A good financial plan completed when one is in their 30s will typically last a lifetime.

The amount of money we set aside for future consumption will be determined by

Most families find it difficult to discuss money matters.

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

The most effective way to achieve financial objectives is through financial planning.

____ is the financial goal most people think is least important.

Financial planning can improve your standard of living.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -It is [fairly simple | impossible] to find a financial plan that will work for everyone.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your [level of education | age] will usually have no effect on your earning capacity.

Consumer choices ultimately determine the kinds of goods and services businesses will provide.

An economy will usually go into a _________ after a peak.

Government controls consumers and businesses by regulation and taxation.

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