Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Disney stock | Your car] would be considered a financial asset.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.D) None of the above
E) All of the above

Question 2

Employee benefits can typically be transferred to a new job when one changes employers.

Accepted Answer

A) True 
 B)False

Question 3

A personal computer could not be used to

Accepted Answer

A)   prepare detailed budgets.
B)   analyze investment possibilities.
C)   store and retrieve financial information efficiently.
D)   make financial decisions.
E)   keep insurance coverage inventories.F) C) and E)
G) A) and E)

Question 4

The term most closely associated with quality of life is

Accepted Answer

A)   wealth.
B)   consumption.
C)   education.
D)   standard of living.
E)   money.F) A) and B)
G) B) and D)

Question 5

The government employs monetary and fiscal policy to ensure the economy always remains stable.

Accepted Answer

A) True 
 B)False

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A decrease in the gross domestic product would indicate that our economy is [growing | stagnating].

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.D) None of the above
E) A) and B)

Question 7

Typically people with the lowest incomes tend to be

Accepted Answer

A)   educated.
B)   very old.
C)   very young or very old.
D)   middle aged.
E)   childless.F) A) and B)
G) None of the above

Question 8

Spending for your child's private-school education is an example of deferred consumption.

Accepted Answer

A) True 
 B)False

Question 9

Your personal value system will shape your attitude toward money and wealth accumulation.

Accepted Answer

A) True 
 B)False

Question 10

Tangible assets are earning assets that are held for the returns they promise.

Accepted Answer

A) True 
 B)False

Question 11

The financial crisis of 2008 and 2009 was the first depression the U.S.has experienced in 75 years.

Accepted Answer

A) True 
 B)False

Question 12

Debt is another word for liability.

Accepted Answer

A) True 
 B)False

Question 13

Current consumption is inversely related to saving for the future.

Accepted Answer

A) True 
 B)False

Question 14

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

Accepted Answer

A) True 
 B)False

Question 15

Personal financial management is important because it

Accepted Answer

A)   controls inflation.
B)   limits consumption.
C)   uses money as an end.
D)   makes personal financial goals easier to achieve.
E)   lessens economic differences among individuals.F) A) and B)
G) A) and C)

Question 16

The individual consumer is

Accepted Answer

A)   a member of the business group.
B)   the party around which the personal financial environment is centered.
C)   an important force in government.
D)   an advocacy group.
E)   relatively unimportant to business or government.F) A) and B)
G) A) and C)

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The Consumer Price Index is a measure of [unemployment | inflation].

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.D) None of the above
E) All of the above

Question 18

Employee benefits may include

Accepted Answer

A)   retirement plans
B)   health insurance
C)   employee discounts
D)   tuition reimbursements
E)   all of the aboveF) A) and B)
G) All of the above

Question 19

The four stages of an economic cycle would not include

Accepted Answer

A)   depression.
B)   expansion.
C)   recession.
D)   recovery.
E)   stagnation.F) A) and C)
G) B) and E)

Question 20

The last step in the financial planning process is to

Accepted Answer

A)   develop financial plans and strategies to achieve goals.
B)   use financial statements to evaluate results of plans and budgets,taking corrective action as required.
C)   implement financial plans and strategies.
D)   redefine goals and revise plans and strategies as personal circumstances change
E)   periodically develop and implement budgets to monitor and control progress toward goals.F) B) and D)
G) A) and D)

Exam 1: Understanding the Financial Planning Process

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Disney stock | Your car] would be considered a financial asset.

Correct AnswerverifiedShow Answer

Employee benefits may include

Correct AnswerverifiedShow Answer

Tangible assets are earning assets that are held for the returns they promise.

Correct AnswerverifiedShow Answer

Debt is another word for liability.

Correct AnswerverifiedShow Answer

The financial crisis of 2008 and 2009 was the first depression the U.S.has experienced in 75 years.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The Consumer Price Index is a measure of [unemployment | inflation].

Correct AnswerverifiedShow Answer

Typically people with the lowest incomes tend to be

Correct AnswerverifiedShow Answer

Current consumption is inversely related to saving for the future.

Correct AnswerverifiedShow Answer

The government employs monetary and fiscal policy to ensure the economy always remains stable.

Correct AnswerverifiedShow Answer

The last step in the financial planning process is to

Correct AnswerverifiedShow Answer

Your personal value system will shape your attitude toward money and wealth accumulation.

Correct AnswerverifiedShow Answer

Personal financial management is important because it

Correct AnswerverifiedShow Answer

The four stages of an economic cycle would not include

Correct AnswerverifiedShow Answer

The term most closely associated with quality of life is

Correct AnswerverifiedShow Answer

Employee benefits can typically be transferred to a new job when one changes employers.

Correct AnswerverifiedShow Answer

The individual consumer is

Correct AnswerverifiedShow Answer

Saving $3,000 for a large,flat-screen TV within the next 3 years is an example of a short-term goal.

Correct AnswerverifiedShow Answer

A personal computer could not be used to

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A decrease in the gross domestic product would indicate that our economy is [growing | stagnating].

Correct AnswerverifiedShow Answer

Spending for your child's private-school education is an example of deferred consumption.

Correct AnswerverifiedShow Answer

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