,
, 01
Student: .
1. Personal .financial .planning .has .the .main .goal .of:
A. Savings .and .investing .for .future .needs.
B. Reducing .a .person's .tax .liability.
C. Managing .money .to .achieve .personal .economic .satisfaction.
D. Spending .to .achieve .financial .objectives.
E. Savings, .spending, .and .borrowing .based .on .current .needs.
2. The .first .step .of .the .financial .planning .process .is .to
A. develop .financial .goals.
B. implement .the .financial .plan.
C. determine .your .current .personal .and .financial .situation.
D. evaluate .and .revise .your .actions.
E. create .a .financial .plan .of .action.
3. Opportunity .cost .refers .to:
A. money .needed .for .major .consumer .purchases.
B. the .trade-off .of .a .decision.
C. the .amount .paid .for .taxes .when .a .purchase .is .made.
D. current .interest .rates.
E. evaluating .different .alternatives .for .financial .decisions.
4. Increased .consumer .spending .will .usually .cause:
A. lower .consumer .prices.
B. reduced .employment .levels.
C. lower .tax .revenues.
D. lower .interest .rates.
E. higher .employment .levels.
5. The .uncertainty .associated .with .decision .making .is .referred .to .as:
A. opportunity .cost.
B. selection .of .alternatives.
C. financial .goals.
D. personal .values.
E. risk.
6. Some .savings .and .investment .choices .have .the .potential .for .higher .earnings. .However, .these .may .also
.be .difficult .to .convert .to .cash .when .you .need .the .funds. .This .problem .refers .to:
A. Inflation .risk
B. Interest .rate .risk
C. Income .risk
D. Personal .risk
E. Liquidity .risk
7. The .financial .planning .process .concludes .with .efforts .to:
A. develop .financial .goals.
B. create .a .financial .plan .of .action.
C. analyze .your .current .personal .and .financial .situation.
D. implement .the .financial .plan.
E. revaluate .and .revise .your .actions.
, 8. Changes .in .income, .values, .and .family .situation .make .it .necessary .to:
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.
9. As .Jeanne .Taillefer .plans .to .set .aside .funds .for .her .young .children's .college .education, .she .is .setting .a(n)
goal.
A. intermediate
B. short .term
C. long-term
D. intangible
E. durable
10. goals .relate .to .personal .relationships, .health, .and .education.
A. Short-term
B. Intangible-purchase
C. Consumable-product
D. Durable-product
E. Intermediate
11. Brad .Opper .has .a .goal .of ."saving .$50 .a .month .for .vacation." .Brad's .goal .lacks
A. measurable .terms.
B. a .realistic .perspective.
C. specific .actions.
D. a .tangible .end.
E. a .time .frame.
12. Which .of .the .following .goals .would .be .the .easiest .to .implement .and .measure .its .accomplishment?
A. "Reduce .our .debt .payments."
B. "Save .funds .for .an .annual .vacation."
C. "Save .$100 .a .month .to .create .a .$4,000 .emergency .fund."
D. "Clear .credit .card .debt
E. "Invest .$2,000 .a .year .for .retirement."
13. The .present .value .of .a .future .amount .will .decrease .if . .
I. the .discount .rate .increases
II. the .amount .occurs .closer .in .time
III. the .compounding .frequency .increases
IV. inflation .increases
A. I .and .II .only
B. I .and .III .only
C. II .and .III .only
D. III .and .IV .only
E. I, .III .and .IV .only
14. Higher .prices .are .likely .to .result .from:
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.
, 01
Student: .
1. Personal .financial .planning .has .the .main .goal .of:
A. Savings .and .investing .for .future .needs.
B. Reducing .a .person's .tax .liability.
C. Managing .money .to .achieve .personal .economic .satisfaction.
D. Spending .to .achieve .financial .objectives.
E. Savings, .spending, .and .borrowing .based .on .current .needs.
2. The .first .step .of .the .financial .planning .process .is .to
A. develop .financial .goals.
B. implement .the .financial .plan.
C. determine .your .current .personal .and .financial .situation.
D. evaluate .and .revise .your .actions.
E. create .a .financial .plan .of .action.
3. Opportunity .cost .refers .to:
A. money .needed .for .major .consumer .purchases.
B. the .trade-off .of .a .decision.
C. the .amount .paid .for .taxes .when .a .purchase .is .made.
D. current .interest .rates.
E. evaluating .different .alternatives .for .financial .decisions.
4. Increased .consumer .spending .will .usually .cause:
A. lower .consumer .prices.
B. reduced .employment .levels.
C. lower .tax .revenues.
D. lower .interest .rates.
E. higher .employment .levels.
5. The .uncertainty .associated .with .decision .making .is .referred .to .as:
A. opportunity .cost.
B. selection .of .alternatives.
C. financial .goals.
D. personal .values.
E. risk.
6. Some .savings .and .investment .choices .have .the .potential .for .higher .earnings. .However, .these .may .also
.be .difficult .to .convert .to .cash .when .you .need .the .funds. .This .problem .refers .to:
A. Inflation .risk
B. Interest .rate .risk
C. Income .risk
D. Personal .risk
E. Liquidity .risk
7. The .financial .planning .process .concludes .with .efforts .to:
A. develop .financial .goals.
B. create .a .financial .plan .of .action.
C. analyze .your .current .personal .and .financial .situation.
D. implement .the .financial .plan.
E. revaluate .and .revise .your .actions.
, 8. Changes .in .income, .values, .and .family .situation .make .it .necessary .to:
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.
9. As .Jeanne .Taillefer .plans .to .set .aside .funds .for .her .young .children's .college .education, .she .is .setting .a(n)
goal.
A. intermediate
B. short .term
C. long-term
D. intangible
E. durable
10. goals .relate .to .personal .relationships, .health, .and .education.
A. Short-term
B. Intangible-purchase
C. Consumable-product
D. Durable-product
E. Intermediate
11. Brad .Opper .has .a .goal .of ."saving .$50 .a .month .for .vacation." .Brad's .goal .lacks
A. measurable .terms.
B. a .realistic .perspective.
C. specific .actions.
D. a .tangible .end.
E. a .time .frame.
12. Which .of .the .following .goals .would .be .the .easiest .to .implement .and .measure .its .accomplishment?
A. "Reduce .our .debt .payments."
B. "Save .funds .for .an .annual .vacation."
C. "Save .$100 .a .month .to .create .a .$4,000 .emergency .fund."
D. "Clear .credit .card .debt
E. "Invest .$2,000 .a .year .for .retirement."
13. The .present .value .of .a .future .amount .will .decrease .if . .
I. the .discount .rate .increases
II. the .amount .occurs .closer .in .time
III. the .compounding .frequency .increases
IV. inflation .increases
A. I .and .II .only
B. I .and .III .only
C. II .and .III .only
D. III .and .IV .only
E. I, .III .and .IV .only
14. Higher .prices .are .likely .to .result .from:
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.
