Question 1

What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Accepted Answer

Common risks are inflation risk,interest...

Question 2

Financial planning information sources generally do not include:

Accepted Answer

A)   Print and Media
B)  Financial Experts
C)   Financial Institutions
D)  Personal Friends
E)  Digital SourcesF) B) and E)
G) A) and B)

Question 3

The Fed refers to:

Accepted Answer

A)  government regulation of business.
B)  Congress.
C)  the Federal Reserve System.
D)  the Federal Deposit Insurance Corporation.
E)  spending by the federal government.F) C) and D)
G) A) and E)

Question 4

Higher interest rates can be caused by:

Accepted Answer

A)  a lower money supply.
B)  an increase in the money supply.
C)  a decrease in consumer borrowing.
D)  lower government spending.
E)  increased saving and investing by consumers.F) A) and B)
G) B) and E)

Question 5

Which of the following is usually considered a long-term financial strategy?

Accepted Answer

A)  Creating a budget
B)  Using savings to pay off a loan early
C)  Renting an apartment to save for the purchase of a home
D)  Investing in a mutual fund to accumulate retirement funds
E)  Purchasing auto insurance to cover the needs of dependentsF) A) and E)
G) B) and E)

Question 6

The stages in the family and financial needs of an adult are called the:

Accepted Answer

A)  financial planning process.
B)  budgeting procedure.
C)  personal economic cycle.
D)  adult life cycle.
E)  tax planning process.F) A) and C)
G) C) and D)

Question 7

Attempts to increase financial resources are part of the ____________ component of financial planning.

Accepted Answer

A)  planning
B)  obtaining
C)  saving
D)  sharing
E)  protectingF) All of the above
G) A) and E)

Question 8

Resources for financial planning can be found from:

Accepted Answer

A)  print and media.
B)  digital sources.
C)  financial institutions.
D)  financial experts.
E)  All of these.F) A) and D)
G) A) and C)

Question 9

Which of the following is an example of opportunity cost?

Accepted Answer

A)  Renting an apartment near school
B)  Saving money instead of taking a vacation
C)  Setting aside money for paying income tax
D)  Purchasing automobile insurance
E)  Using a personal computer for financial planningF) A) and D)
G) A) and E)

Question 10

What are the eight Components of Financial Planning?

Accepted Answer

The main Components of Financi...

Question 11

A decrease in the demand for a product or service may result in unemployment from staff reduction.

Accepted Answer

A) True 
 B)False

Question 12

John Gleason is interested in purchasing a 46" rear projection TV for his living room.He knows that right now the TV will cost approximately $1500.John wants to borrow the money to purchase the TV but is a little concerned because he thinks interest rates are going to fall in the future.He is worried that he might get stuck with a loan at a high interest rate.What type of risk is John worried about?

Accepted Answer

A)  Inflation risk
B)  Interest rate risk
C)  Income risk
D)  Personal risk
E)  Liquidity riskF) B) and E)
G) A) and B)

Question 13

Measuring risk associated with making most financial decisions is difficult because of what factor(s) ?

Accepted Answer

A)  Inflation risk
B)  Interest Rate risk
C)  Personal risk
D)  Liquidity risk
E)  All of these.F) A) and B)
G) B) and C)

Question 14

The future value of $1,000 deposited each year for 5 years earning 4 percent would be approximately:

Accepted Answer

A)  $5,000
B)  $5,250
C)  $5,400
D)  $6,500
E)  $8,200F) D) and E)
G) All of the above

Question 15

The success of a financial plan will be determined by:

Accepted Answer

A)  the amount of debts owed.
B)  the stage of the adult life cycle.
C)  a person's tax status.
D)  the individual's financial habits.
E)  current economic conditions.F) A) and C)
G) C) and D)

Question 16

The main economic influence that causes inflation is:

Accepted Answer

A)  Changes in the stock market.
B)  Decreases in interest rates.
C)  Increases in employment.
D)  Decreases in government spending.
E)  Increases in demand without increases in supply.F) D) and E)
G) C) and D)

Question 17

Higher consumer prices are likely to be accompanied by:

Accepted Answer

A)  lower union wages.
B)  lower interest rates.
C)  lower production costs.
D)  higher interest rates.
E)  higher exports.F) A) and E)
G) None of the above

Question 18

Inflation risk may include changes in buying power and:

Accepted Answer

A)   rising prices.
B)  falling prices
C)  decisions to buy later
D)  decisions to buy now.
E)  All of these.F) C) and D)
G) All of the above

Question 19

Which of the following would cause consumer prices to drop?

Accepted Answer

A)  Increased consumer borrowing
B)  Higher spending by consumers
C)  A demand for higher wages
D)  Hidden inflation
E)  Increased supply by business without increased consumer demand.F) All of the above
G) A) and B)

Question 20

One aspect of financial planning is to make wise decisions using a plan as to what to purchase and when to purchase it.Which aspect of financial planning does this deal with?

Accepted Answer

A)  Borrowing
B)  Spending
C)  Managing Risk
D)  Investing
E)  Retirement and Estate PlanningF) A) and B)
G) None of the above

Exam 1: Personal Finance Basics and the Time Value of Money

One aspect of financial planning is to make wise decisions using a plan as to what to purchase and when to purchase it.Which aspect of financial planning does this deal with?

Correct Answer
verified

The future value of $1,000 deposited each year for 5 years earning 4 percent would be approximately:

Correct Answer
verified

What are the eight Components of Financial Planning?

Correct Answer
verified
The main Components of Financi...
View Answer

Measuring risk associated with making most financial decisions is difficult because of what factor(s) ?

Correct Answer
verified

Which of the following is an example of opportunity cost?

Correct Answer
verified

Which of the following is usually considered a long-term financial strategy?

Correct Answer
verified

Inflation risk may include changes in buying power and:

Correct Answer
verified

Resources for financial planning can be found from:

Correct Answer
verified

The stages in the family and financial needs of an adult are called the:

Correct Answer
verified

The success of a financial plan will be determined by:

Correct Answer
verified

Higher interest rates can be caused by:

Correct Answer
verified

Correct Answer
verified

Financial planning information sources generally do not include:

Correct Answer
verified

Which of the following would cause consumer prices to drop?

Correct Answer
verified

Attempts to increase financial resources are part of the ____________ component of financial planning.

Correct Answer
verified

A decrease in the demand for a product or service may result in unemployment from staff reduction.

Correct Answer
verified

The main economic influence that causes inflation is:

Correct Answer
verified

The Fed refers to:

Correct Answer
verified

What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Correct Answer
verified
Common risks are inflation risk,interest...
View Answer

Higher consumer prices are likely to be accompanied by:

Correct Answer
verified

Exam 1: Personal Finance Basics and the Time Value of Money

One aspect of financial planning is to make wise decisions using a plan as to what to purchase and when to purchase it.Which aspect of financial planning does this deal with?

Correct AnswerverifiedShow Answer

The future value of $1,000 deposited each year for 5 years earning 4 percent would be approximately:

Correct AnswerverifiedShow Answer

What are the eight Components of Financial Planning?

Correct AnswerverifiedThe main Components of Financi...View AnswerShow Answer

Measuring risk associated with making most financial decisions is difficult because of what factor(s) ?

Correct AnswerverifiedShow Answer

Which of the following is an example of opportunity cost?

Correct AnswerverifiedShow Answer

Which of the following is usually considered a long-term financial strategy?

Correct AnswerverifiedShow Answer

Inflation risk may include changes in buying power and:

Correct AnswerverifiedShow Answer

Resources for financial planning can be found from:

Correct AnswerverifiedShow Answer

The stages in the family and financial needs of an adult are called the:

Correct AnswerverifiedShow Answer

The success of a financial plan will be determined by:

Correct AnswerverifiedShow Answer

Higher interest rates can be caused by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Financial planning information sources generally do not include:

Correct AnswerverifiedShow Answer

Which of the following would cause consumer prices to drop?

Correct AnswerverifiedShow Answer

Attempts to increase financial resources are part of the ____________ component of financial planning.

Correct AnswerverifiedShow Answer

A decrease in the demand for a product or service may result in unemployment from staff reduction.

Correct AnswerverifiedShow Answer

The main economic influence that causes inflation is:

Correct AnswerverifiedShow Answer

The Fed refers to:

Correct AnswerverifiedShow Answer

What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Correct AnswerverifiedCommon risks are inflation risk,interest...View AnswerShow Answer

Higher consumer prices are likely to be accompanied by:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The main Components of Financi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Common risks are inflation risk,interest...
View Answer

Correct Answer
verified