Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Money | Inflation] is the common denominator for gauging all financial transactions.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 2

While you are still working,you should be managing your finances for retirement planning.Which of the following is not a goal of your retirement planning?

Accepted Answer

A)   maintaining your standard of living
B)   effectively passing wealth on to heirs
C)   a vacation home or boat
D)   travel B

Question 3

Family financial goals should be

Accepted Answer

A)   very general in nature.
B)   realistically attainable.
C)   individually determined.
D)   set once for a lifetime.
E)   reserved for retirement planning.

Question 4

Consumers affect businesses by their choices of what goods and services to purchase and by choosing whether they will spend or save their incomes.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Following an economic trough,the economy will often enter a period of [expansion | contraction].

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 6

Which of the following goals is stated in a way that is most useful for developing a financial plan?

Accepted Answer

A)   Make a $12,000 down payment on an automobile in 4 years
B)   Retire with a comfortable lifestyle in 25 years
C)   Buy a $125,000 house in 6 years
D)   Purchase a $40,000 boat
E)   Join the country club when retired in 20 years

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Inflation | Consumer Price Index] is the amount of goods and services each dollar buys at a given point in time.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 8

Professional financial planners

Accepted Answer

A)   help by establishing personal financial goals.
B)   are only for wealthy investors.
C)   are skilled at offering simple solutions to complex financial problems.
D)   make financial decisions for investors.
E)   are best utilized during retirement years.

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The average income of household heads increase until age [55 | 65] then income starts decreasing.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 10

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

Accepted Answer

A) True 
 B)False  False

Question 11

As the rate of inflation increases,

Accepted Answer

A)   the cost of living goes down.
B)   interest rates decrease.
C)   pay checks decrease.
D)   retirement plans have more difficulty meeting their goals.
E)   purchasing power of a dollar increases.

Question 12

Businesses provide

Accepted Answer

A)   stores.
B)   money payments.
C)   land and capital.
D)   labor.
E)   goods and services.

Question 13

Money can be an emotional factor that may affect a person's financial plans.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Stocks | Your house] would be considered to be real property.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-For most people,debts [increase constantly | increase and then decrease] during their lifetimes.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-After reaching adulthood,your financial goals will [stabilize | continue to change].

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 17

A financial goal that would be important in all stages of the life cycle is creating and maintaining an emergency fund.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-For most people,employee benefits are of [little | major] importance.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 19

It is possible to draw up one financial plan that will work for most people.

Accepted Answer

A) True 
 B)False

Question 20

A strong economy leads to higher levels of employment.

Accepted Answer

A) True 
 B)False  True

Exam 1: Understanding the Financial Planning Process

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Money | Inflation] is the common denominator for gauging all financial transactions.

Correct AnswerverifiedShow Answer

While you are still working,you should be managing your finances for retirement planning.Which of the following is not a goal of your retirement planning?

Correct AnswerverifiedB

Family financial goals should be

Correct AnswerverifiedShow Answer

Consumers affect businesses by their choices of what goods and services to purchase and by choosing whether they will spend or save their incomes.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Following an economic trough,the economy will often enter a period of [expansion | contraction].

Correct AnswerverifiedShow Answer

Which of the following goals is stated in a way that is most useful for developing a financial plan?

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Inflation | Consumer Price Index] is the amount of goods and services each dollar buys at a given point in time.

Correct AnswerverifiedShow Answer

Professional financial planners

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The average income of household heads increase until age [55 | 65] then income starts decreasing.

Correct AnswerverifiedShow Answer

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

Correct AnswerverifiedFalse

As the rate of inflation increases,

Correct AnswerverifiedShow Answer

Businesses provide

Correct AnswerverifiedShow Answer

Money can be an emotional factor that may affect a person's financial plans.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Stocks | Your house] would be considered to be real property.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -For most people,debts [increase constantly | increase and then decrease] during their lifetimes.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -After reaching adulthood,your financial goals will [stabilize | continue to change].

Correct AnswerverifiedShow Answer

A financial goal that would be important in all stages of the life cycle is creating and maintaining an emergency fund.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -For most people,employee benefits are of [little | major] importance.

Correct AnswerverifiedShow Answer

It is possible to draw up one financial plan that will work for most people.

Correct AnswerverifiedShow Answer

A strong economy leads to higher levels of employment.

Correct AnswerverifiedTrue

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B

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False

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True