Question 1

A question associated with the saving component of financial planning is:

Accepted Answer

A)   Is your will current?
B)   Do you have an adequate emergency fund?
C)   Is your investment program appropriate to your income and tax situation?
D)   Do you have a realistic budget for your current financial situation?
E)   Are your transportation expenses minimized through careful planning?F) All of the above
G) C) and E)

Question 2

When prices are increasing at a rate of 6 percent,the cost of products would double in about 12 years.

Accepted Answer

A) True 
 B)False

Question 3

Higher prices are likely to result from:

Accepted Answer

A)   increased spending by consumers.
B)   increased production by business.
C)   lower interest rates.
D)   lower demand by consumers
E)   an increase in the supply of a product.F) None of the above
G) A) and B)

Question 4

Liquidity refers to

Accepted Answer

A)   the earnings on savings.
B)   the risk of an investment.
C)   the ease of converting a financial resource into cash.
D)   the amount of insurance coverage a person has.
E)   a person's inability to pay his or her debts.F) C) and D)
G) B) and D)

Question 5

Increased demand for a product or service will usually result in lower prices for the item.

Accepted Answer

A) True 
 B)False

Question 6

Financial planning does not have specific techniques that will be effective for every individual and household.

Accepted Answer

A) True 
 B)False

Question 7

What is the future value of $20,000 received in 10 years if it is invested at 6% compounded annually for the next six years and 5%,compounded semi-annually for the remaining four years?

Accepted Answer

A)   $25,000
B)   $31,000
C)   $32,772
D)   $34,567
E)   $38,817F) A) and E)
G) B) and D)

Question 8

Planning to buy a house is an example of a durable product goal.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would cause prices to drop?

Accepted Answer

A)   a demand for higher wages
B)   increased production by business
C)   increased taxes on business
D)   a reduction in the money supply
E)   high levels of demand by customersF) C) and D)
G) All of the above

Question 10

Lenders benefit less than borrowers in times of high inflation.

Accepted Answer

A) True 
 B)False

Question 11

The changing cost of money is referred to as ____________ risk.

Accepted Answer

A)   interest-rate
B)   inflation
C)   economic
D)   trade-off
E)   personalF) None of the above
G) C) and D)

Question 12

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

Accepted Answer

A)   financial goals
B)   saving
C)   planning
D)   restructuring debt
E)   liquidityF) All of the above
G) A) and D)

Question 13

Changes in income,values,and family situation make it necessary to:

Accepted Answer

A)   develop financial goals
B)   implement the financial plan.
C)   evaluate and revise your actions.
D)   analyze your current personal and financial situation.
E)   create a financial plan of action.F) A) and B)
G) B) and E)

Question 14

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 D)

Exam 1: Personal Financial Planning in Action

The changing cost of money is referred to as ____________ risk.

Correct Answer
verified

Planning to buy a house is an example of a durable product goal.

Correct Answer
verified

When prices are increasing at a rate of 6 percent,the cost of products would double in about 12 years.

Correct Answer
verified

Increased demand for a product or service will usually result in lower prices for the item.

Correct Answer
verified

Financial planning does not have specific techniques that will be effective for every individual and household.

Correct Answer
verified

Changes in income,values,and family situation make it necessary to:

Correct Answer
verified

Liquidity refers to

Correct Answer
verified

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

Correct Answer
verified

What is the future value of $20,000 received in 10 years if it is invested at 6% compounded annually for the next six years and 5%,compounded semi-annually for the remaining four years?

Correct Answer
verified

Lenders benefit less than borrowers in times of high inflation.

Correct Answer
verified

Higher interest rates can be caused by:

Correct Answer
verified

Which of the following would cause prices to drop?

Correct Answer
verified

A question associated with the saving component of financial planning is:

Correct Answer
verified

Higher prices are likely to result from:

Correct Answer
verified

Exam 1: Personal Financial Planning in Action

The changing cost of money is referred to as ____________ risk.

Correct AnswerverifiedShow Answer

Planning to buy a house is an example of a durable product goal.

Correct AnswerverifiedShow Answer

When prices are increasing at a rate of 6 percent,the cost of products would double in about 12 years.

Correct AnswerverifiedShow Answer

Increased demand for a product or service will usually result in lower prices for the item.

Correct AnswerverifiedShow Answer

Financial planning does not have specific techniques that will be effective for every individual and household.

Correct AnswerverifiedShow Answer

Changes in income,values,and family situation make it necessary to:

Correct AnswerverifiedShow Answer

Liquidity refers to

Correct AnswerverifiedShow Answer

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

Correct AnswerverifiedShow Answer

What is the future value of $20,000 received in 10 years if it is invested at 6% compounded annually for the next six years and 5%,compounded semi-annually for the remaining four years?

Correct AnswerverifiedShow Answer

Lenders benefit less than borrowers in times of high inflation.

Correct AnswerverifiedShow Answer

Higher interest rates can be caused by:

Correct AnswerverifiedShow Answer

Which of the following would cause prices to drop?

Correct AnswerverifiedShow Answer

A question associated with the saving component of financial planning is:

Correct AnswerverifiedShow Answer

Higher prices are likely to result from:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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