FINA 200 Quiz 1-6 Concordia University with
Complete Solutions
Ch. 1 - Learning Objectives 1 & 3
An understanding of personal finance is beneficial in many ways as it
Question 1:
enables you to make informed decisions about your financial situation.
Which involves the understanding of opportunity costs?
Each spending decision results in forgoing an alternative to either spending
(1 Point)
on something else or in saving for a future purpose.
Judging the advice of financial advisors
Understanding the mathematics underlying financial decisions
Becoming a financial advisor
Ch. 1 - Learning Objective 2
Which decreases your current cash position? Refer Exhibit 1.7.
Question 2:
I. Creating a budgeting surplus
II. Building a retirement nest egg
III. Insuring your personal assets
(1 Point)
IV. Using available credit
I and II
I and IV
II and III
III and IV
At which life stage does owning adequate insurance first become a
Question 3:
concern? Refer Exhibit 1.2.
(1 Point)
Early Retirement
Early Career
Family and Mid-Career
Prime earning
, Chapter 2
Ch. 2 - Learning Objective 1
Which permits faster growth in a future value?
Question 4:
I. Longer investment period.
II. More frequent compounding.
III. Simple rather than compound interest.
(1 Point)
IV. Higher interest rate.
I, II and III, only
II, III and IV, only
I, II, and IV, only
I, II, III and IV
Ch. 2 - Learning Objective 2
Jack Spratt invested $4,500 for 6 years at 2%, compounded semi-
Question 5:
annually. What was the maturity value of his investment?
$3,994
$5,040
(1 Point)
$5,071
$5,074
Ch. 2 - Learning Objective 3
Question 6:
Inflation is forecast at 2% for the next 2 years, and 3% thereafter. If you
expect to receive $15,000 in 5 years’ time, what is its equivalent in today
dollars?
Complete Solutions
Ch. 1 - Learning Objectives 1 & 3
An understanding of personal finance is beneficial in many ways as it
Question 1:
enables you to make informed decisions about your financial situation.
Which involves the understanding of opportunity costs?
Each spending decision results in forgoing an alternative to either spending
(1 Point)
on something else or in saving for a future purpose.
Judging the advice of financial advisors
Understanding the mathematics underlying financial decisions
Becoming a financial advisor
Ch. 1 - Learning Objective 2
Which decreases your current cash position? Refer Exhibit 1.7.
Question 2:
I. Creating a budgeting surplus
II. Building a retirement nest egg
III. Insuring your personal assets
(1 Point)
IV. Using available credit
I and II
I and IV
II and III
III and IV
At which life stage does owning adequate insurance first become a
Question 3:
concern? Refer Exhibit 1.2.
(1 Point)
Early Retirement
Early Career
Family and Mid-Career
Prime earning
, Chapter 2
Ch. 2 - Learning Objective 1
Which permits faster growth in a future value?
Question 4:
I. Longer investment period.
II. More frequent compounding.
III. Simple rather than compound interest.
(1 Point)
IV. Higher interest rate.
I, II and III, only
II, III and IV, only
I, II, and IV, only
I, II, III and IV
Ch. 2 - Learning Objective 2
Jack Spratt invested $4,500 for 6 years at 2%, compounded semi-
Question 5:
annually. What was the maturity value of his investment?
$3,994
$5,040
(1 Point)
$5,071
$5,074
Ch. 2 - Learning Objective 3
Question 6:
Inflation is forecast at 2% for the next 2 years, and 3% thereafter. If you
expect to receive $15,000 in 5 years’ time, what is its equivalent in today
dollars?
