Question 1

If you have enough liquidity,you should either obtain short-term financing or sell assets.

Accepted Answer

A) True 
 B)False

Question 2

If you own personal property,which type of insurance are you most likely to budget for first?

Accepted Answer

A)  Property and casualty insurance 
B)  Disability insurance 
C)  Health insurance 
D)  Flood insurance 
A)  Property and casualty insurance 
B)  Disability insurance 
C)  Health insurance 
D)  Flood insurance

Question 3

Budgeting allows you to forecast how much money you will have at the end of each month so that you can determine how much you will be able to invest in assets.

Accepted Answer

A) True 
 B)False

Question 4

Use the following two columns of items to answer the matching questions below:
-safety deposit box

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 5

You have a car loan at a 8% per year interest,school loans averaging 3% per year interest,credit card debt at 14% per year interest,and you are investing in a fund in which you are earning 7% per year.If you have excess cash flow of $200 per month,prioritize where you should make accelerated payments or invest the cash to optimize the financial result.

Accepted Answer

A)  Credit card debt, car loan, investment, school loan 
B)  Investment, car loan, school loan, credit card debt 
C)  Investment, school loan, credit card debt, car loan 
D)  Always put excess cash to use in an investment 
A)  Credit card debt, car loan, investment, school loan 
B)  Investment, car loan, school loan, credit card debt 
C)  Investment, school loan, credit card debt, car loan 
D)  Always put excess cash to use in an investment

Question 6

What are four types of financial investment balances that you should monitor?

Accepted Answer

Market value of stoc

Question 7

Maintaining a "rainy day fund" is another way of making sure you have adequate

Accepted Answer

A)  liquidity. 
B)  life insurance. 
C)  property insurance. 
D)  foul weather gear. 
A)  liquidity. 
B)  life insurance. 
C)  property insurance. 
D)  foul weather gear.

Question 8

It is not possible to have too much insurance coverage.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following will increase your net worth over time?

Accepted Answer

A)  Leasing a car 
B)  Renting a house 
C)  Buying a house 
D)  All of the above. 
A)  Leasing a car 
B)  Renting a house 
C)  Buying a house 
D)  All of the above.

Question 10

You are 25 years old and saving for an early retirement.Assuming you have a high risk tolerance,which of the following can best help you reach your goal of retiring early?

Accepted Answer

A)  Municipal bond fund 
B)  Money market securities 
C)  Common stock 
D)  Certificates of deposit 
A)  Municipal bond fund 
B)  Money market securities 
C)  Common stock 
D)  Certificates of deposit

Question 11

The easiest way to begin investing and building wealth is by

Accepted Answer

A)  inheriting from your grandparents. 
B)  buying high growth stocks early and often. 
C)  spending less than you make and invest excess cash flow on a routine monthly basis. 
D)  investing in high yield bonds. 
A)  inheriting from your grandparents. 
B)  buying high growth stocks early and often. 
C)  spending less than you make and invest excess cash flow on a routine monthly basis. 
D)  investing in high yield bonds.

Question 12

One disadvantage of investing in retirement accounts is that these funds are typically not very liquid.

Accepted Answer

A) True 
 B)False

Question 13

Key documents for managing investments include all of the following except

Accepted Answer

A)  retirement plan balances. 
B)  account balance showing the market value of mutual funds. 
C)  insurance policies. 
D)  stock certificates. 
A)  retirement plan balances. 
B)  account balance showing the market value of mutual funds. 
C)  insurance policies. 
D)  stock certificates.

Question 14

In deciding how much to contribute to your retirement account,which of the following should you least consider?

Accepted Answer

A)  Anticipated inheritances 
B)  Other financial goals 
C)  Liquidity needs 
D)  Current expenses 
A)  Anticipated inheritances 
B)  Other financial goals 
C)  Liquidity needs 
D)  Current expenses

Question 15

Which of the following statements about insurance is not true?

Accepted Answer

A)  It protects you from events that could reduce your wealth. 
B)  Money used to buy insurance is not available for investing. 
C)  You cannot have too much insurance. 
D)  All of the above are true about insurance. 
A)  It protects you from events that could reduce your wealth. 
B)  Money used to buy insurance is not available for investing. 
C)  You cannot have too much insurance. 
D)  All of the above are true about insurance.

Question 16

Don wants to have $50,000 available in 10 years for retirement living expenses and health care.If he earns an average of 8% on his investments,what amount must he invest each year?

Accepted Answer

A)  $3,453 
B)  $5,000 
C)  $4,372 
D)  $4,003 
A)  $3,453 
B)  $5,000 
C)  $4,372 
D)  $4,003

Question 17

Even average people can accumulate wealth by

Accepted Answer

A)  spending less than they make. 
B)  spending more than they make. 
C)  following hot investment tips found on the Internet. 
D)  playing the lottery. 
A)  spending less than they make. 
B)  spending more than they make. 
C)  following hot investment tips found on the Internet. 
D)  playing the lottery.

Question 18

Monitoring financing includes evaluating all of the following balances except

Accepted Answer

A)  credit cards. 
B)  mortgage loans. 
C)  personal loans. 
D)  Roth IRA. 
A)  credit cards. 
B)  mortgage loans. 
C)  personal loans. 
D)  Roth IRA.

Question 19

Which of the following statements is not true?

Accepted Answer

A)  You should use all of your liquid assets to pay off loans. 
B)  Paying off loans is appropriate when the interest rate is relatively high. 
C)  Paying off loans is wise when the expected rate you will earn on investments is lower than the interest rate on the loan. 
D)  Loan payments you make restrict your spending and saving and may prevent you from achieving financial goals. 
A)  You should use all of your liquid assets to pay off loans. 
B)  Paying off loans is appropriate when the interest rate is relatively high. 
C)  Paying off loans is wise when the expected rate you will earn on investments is lower than the interest rate on the loan. 
D)  Loan payments you make restrict your spending and saving and may prevent you from achieving financial goals.

Question 20

The idea of having adequate insurance is to protect against events that could reduce your income or wealth.

Accepted Answer

A) True 
 B)False

If you have enough liquidity,you should either obtain short-term financing or sell assets.

If you own personal property,which type of insurance are you most likely to budget for first?

Budgeting allows you to forecast how much money you will have at the end of each month so that you can determine how much you will be able to invest in assets.

Use the following two columns of items to answer the matching questions below: -safety deposit box

What are four types of financial investment balances that you should monitor?

Maintaining a "rainy day fund" is another way of making sure you have adequate

It is not possible to have too much insurance coverage.

Which of the following will increase your net worth over time?

You are 25 years old and saving for an early retirement.Assuming you have a high risk tolerance,which of the following can best help you reach your goal of retiring early?

The easiest way to begin investing and building wealth is by

One disadvantage of investing in retirement accounts is that these funds are typically not very liquid.

Key documents for managing investments include all of the following except

In deciding how much to contribute to your retirement account,which of the following should you least consider?

Which of the following statements about insurance is not true?

Don wants to have $50,000 available in 10 years for retirement living expenses and health care.If he earns an average of 8% on his investments,what amount must he invest each year?

Even average people can accumulate wealth by

Monitoring financing includes evaluating all of the following balances except

Which of the following statements is not true?

The idea of having adequate insurance is to protect against events that could reduce your income or wealth.

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

Exam 21: Integrating the Components of a Financial Plan

If you have enough liquidity,you should either obtain short-term financing or sell assets.

If you own personal property,which type of insurance are you most likely to budget for first?

Budgeting allows you to forecast how much money you will have at the end of each month so that you can determine how much you will be able to invest in assets.

Use the following two columns of items to answer the matching questions below: -safety deposit box

What are four types of financial investment balances that you should monitor?

Maintaining a "rainy day fund" is another way of making sure you have adequate

It is not possible to have too much insurance coverage.

Which of the following will increase your net worth over time?

You are 25 years old and saving for an early retirement.Assuming you have a high risk tolerance,which of the following can best help you reach your goal of retiring early?

The easiest way to begin investing and building wealth is by

One disadvantage of investing in retirement accounts is that these funds are typically not very liquid.

Key documents for managing investments include all of the following except

In deciding how much to contribute to your retirement account,which of the following should you least consider?

Which of the following statements about insurance is not true?

Don wants to have $50,000 available in 10 years for retirement living expenses and health care.If he earns an average of 8% on his investments,what amount must he invest each year?

Even average people can accumulate wealth by

Monitoring financing includes evaluating all of the following balances except

Which of the following statements is not true?

The idea of having adequate insurance is to protect against events that could reduce your income or wealth.

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