Question 1

________ should be kept in a safe at home or in a safety deposit box at a bank.

Accepted Answer

The answer of ________ should be kept in a safe...

Question 2

Insurance protects against events that could reduce

Accepted Answer

A)  your income. 
B)  your chances of an accident. 
C)  your wealth. 
D)  Both A and C are correct. 
A)  your income. 
B)  your chances of an accident. 
C)  your wealth. 
D)  Both A and C are correct.

Question 3

Use the following two columns of items to answer the matching questions below:
-mortgage loan

Accepted Answer

A) asset and income protection 
B) a place to store your financial documents 
C) a loan to purchase a home or condominium 
D) amount saved for the future 
A) asset and income protection 
B) a place to store your financial documents 
C) a loan to purchase a home or condominium 
D) amount saved for the future

Question 4

If you want periodic income,which of the following investments should you purchase?

Accepted Answer

A)  Bonds 
B)  Stocks that pay cash dividends 
C)  Mutual funds 
D)  Both A and B are correct 
A)  Bonds 
B)  Stocks that pay cash dividends 
C)  Mutual funds 
D)  Both A and B are correct

Question 5

The key factor to be considered before investing in municipal bonds is

Accepted Answer

A)  they are financially advantageous mainly to high tax rate investors. 
B)  they are generally not as liquid as high grade corporate bonds. 
C)  in order to diversify you should invest in a municipal bond fund rather than specific bonds. 
D)  All of the above are key considerations. 
A)  they are financially advantageous mainly to high tax rate investors. 
B)  they are generally not as liquid as high grade corporate bonds. 
C)  in order to diversify you should invest in a municipal bond fund rather than specific bonds. 
D)  All of the above are key considerations.

Question 6

Which of the following will not improve your net worth?

Accepted Answer

A)  Increasing your income 
B)  Decreasing your expenses 
C)  Increasing your assets 
D)  Increasing your liabilities 
A)  Increasing your income 
B)  Decreasing your expenses 
C)  Increasing your assets 
D)  Increasing your liabilities

Question 7

Financial documents should be

Accepted Answer

A)  kept in a desk drawer in your home for easy access. 
B)  kept in a safety deposit box. 
C)  kept at your parents' house in their desk. 
D)  None of the above. 
A)  kept in a desk drawer in your home for easy access. 
B)  kept in a safety deposit box. 
C)  kept at your parents' house in their desk. 
D)  None of the above.

Question 8

The purpose of insurance is to protect your

Accepted Answer

A)  liabilities and expenses. 
B)  assets and liabilities. 
C)  assets and net worth. 
D)  income and expenses. 
A)  liabilities and expenses. 
B)  assets and liabilities. 
C)  assets and net worth. 
D)  income and expenses.

Question 9

________ insurance provides financial support if you are injured and unable to work.

Accepted Answer

A)  Liability 
B)  Disability 
C)  Compensatory 
D)  Medical reimbursement 
A)  Liability 
B)  Disability 
C)  Compensatory 
D)  Medical reimbursement

Question 10

Compared to the stocks of larger firms,the stocks of smaller firms are

Accepted Answer

A)  less volatile. 
B)  more volatile. 
C)  more liquid. 
D)  safer. 
A)  less volatile. 
B)  more volatile. 
C)  more liquid. 
D)  safer.

Question 11

Some retirement plans,such as Roth IRAs,are more liquid than other plans.

Accepted Answer

A) True 
 B)False

Question 12

It is easier to make monthly loan payments if you select financing that has relatively ________ maturities.

Accepted Answer

The answer of It is easier to make monthly loan...

Question 13

You should make investments only after you have sufficient liquidity and sufficient insurance to protect your existing assets.

Accepted Answer

A) True 
 B)False

Question 14

As a result of the ________,the more you spend the less money you will have for liquidity or investments.

Accepted Answer

The answer of As a result of the ________,the more...

Question 15

The purpose of financial planning is to help do all of the following except

Accepted Answer

A)  set goals. 
B)  increase your spending. 
C)  become financially educated. 
D)  increase wealth or net worth. 
A)  set goals. 
B)  increase your spending. 
C)  become financially educated. 
D)  increase wealth or net worth.

Question 16

By investing in stock of ________,________ firms,you may enhance your liquidity because you will receive dividend income.

Accepted Answer

A)  small; well-known 
B)  small; unknown 
C)  large; unknown 
D)  large; well-known 
A)  small; well-known 
B)  small; unknown 
C)  large; unknown 
D)  large; well-known

Question 17

Key documents for managing personal financing include all except

Accepted Answer

A)  credit card statements. 
B)  retirement account balances. 
C)  personal loans, such as automobile loans. 
D)  mortgage loan agreement. 
A)  credit card statements. 
B)  retirement account balances. 
C)  personal loans, such as automobile loans. 
D)  mortgage loan agreement.

Question 18

If you save monthly for retirement,which of the following would be used to determine how much you would ultimately have in your retirement account?

Accepted Answer

A)  Present value of an annuity 
B)  Future value of an annuity 
C)  Present value of $1 
D)  Standard deviation 
A)  Present value of an annuity 
B)  Future value of an annuity 
C)  Present value of $1 
D)  Standard deviation

Question 19

Personal financing can do all of the following,except

Accepted Answer

A)  allow you to make purchases without having the full amount of cash on hand. 
B)  increase the amount of your assets. 
C)  prove useful for large purchases. 
D)  help in increasing your ability to save. 
A)  allow you to make purchases without having the full amount of cash on hand. 
B)  increase the amount of your assets. 
C)  prove useful for large purchases. 
D)  help in increasing your ability to save.

Question 20

Which of the following does not increase your net worth?

Accepted Answer

A)  An increase in your retirement balance 
B)  An increase in your home value 
C)  An increase in your mutual funds 
D)  The purchase of a new car 
A)  An increase in your retirement balance 
B)  An increase in your home value 
C)  An increase in your mutual funds 
D)  The purchase of a new car

Exam 21: Integrating the Components of a Financial Plan

________ should be kept in a safe at home or in a safety deposit box at a bank.

Insurance protects against events that could reduce

Use the following two columns of items to answer the matching questions below: -mortgage loan

If you want periodic income,which of the following investments should you purchase?

The key factor to be considered before investing in municipal bonds is

Which of the following will not improve your net worth?

Financial documents should be

The purpose of insurance is to protect your

________ insurance provides financial support if you are injured and unable to work.

Compared to the stocks of larger firms,the stocks of smaller firms are

Some retirement plans,such as Roth IRAs,are more liquid than other plans.

It is easier to make monthly loan payments if you select financing that has relatively ________ maturities.

You should make investments only after you have sufficient liquidity and sufficient insurance to protect your existing assets.

As a result of the ________,the more you spend the less money you will have for liquidity or investments.

The purpose of financial planning is to help do all of the following except

By investing in stock of ________,________ firms,you may enhance your liquidity because you will receive dividend income.

Key documents for managing personal financing include all except

If you save monthly for retirement,which of the following would be used to determine how much you would ultimately have in your retirement account?

Personal financing can do all of the following,except

Which of the following does not increase your net worth?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Filters

By investing in stock of , firms,you may enhance your liquidity because you will receive dividend income.