FIN2602-Multiple-Choice-Verified Q AND A.

Personal financial planning Financial independence means … [1] great wealth. [2] you are dependent on the state for a pension. [3] you are dependent on family members to survive financially. [4] you are able to survive financially on your own investments after retirement. [5] you do not have to continue working after retirement. Which of the following statements are correct? (a) Personal financial management is the field of study that affects all people. (b) Personal financial management is the field of study that affects investors and brokers mainly. (c) Personal financial skills are probably the most important life skills one can possess. (d) Persons with this knowledge and skills can also “transfer” it to their children. [1] a and b [2] a and c [3] a, b and d [4] a, c and d [5] d only Which one of the following statements is correct? [1] Career planning does not form part of personal financial planning. [2] Estate planning does not form part of personal financial planning. [3] Income tax planning does not form part of personal financial planning. [4] Personal financial planning includes retirement planning. [5] Emigration planning does not form part of personal financial planning. Which of the following statements are correct? (a) Fewer than one out of ten people retire financially independent. (b) Maximum profit is the long-term goal of personal financial management. (c) The long-term goal of personal financial management is financial independence at retirement. [1] a only [2] b only [3] a and b [4] a and c [5] a, b and c Which one of the following statements is correct? [1] Personal financial planning does not include business planning. [2] People’s financial priorities remain the same through the planning cycle. [3] Knowledge is not a prerequisite for personal financial planning. [4] People confuse investments with personal financial planning. [5] Emigration planning does not form part of personal financial planning. Which of the following statements is/are correct (a) One out of three people retire financially independent (b) Personal financial management includes health care planning (c) The long-term goal of personal financial management is financial independence at retirement [1] a only [2] b and c [3] a and b [4] a and c [5] a, b and c Which of the following statement is/are correct? The secret to personal financial management and planning is to be aware of the many factors that may influence your _______ at the present time or in the future (a) Personal financial situation positively (b) Personal financial situation negatively (c) Personal financial situation positively or negatively (d) Retirement positively (e) Investments positively 1] a only [2] b only [3] c only [4] b and d [5] b and e Which one of the following statements is correct? [1] Whithin the same financial planning cycle, people’s priorities and preferences are exactly the same [2] Within the same financial planning cycle, people’s priorities and preferences will not change according to their current individual circumstances [3] Our financial priorities stay the same as we move through the personal financial planning cycle [4] Personal financial planning has to do with what the world’s richest people have done [5] Our financial priorities change as we move through the perusal financial planning cycle