Invest and Finance Final Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
While each person's financial plan is different, some common factors guide all sound financial
plans: flexibility, liquidity, protection, and minimization of taxes. - Correct answers✔✔True
Evaluating your financial health consists of - Correct answers✔✔determining what you are
worth.
preparing a personal income statement
determining where your money comes from and where it goes.
preparing a personal balance sheet.
You need to review your progress and reevaluate and revise your plan (Step 5) because - Correct
answers✔✔our family situation might change over time.
your net worth changes over time.
your employment situation changes over time.
your financial needs change over the course of your life.
The term that considers having money readily available when you need it is the concept of -
Correct answers✔✔liquidity
The most important aspect of choosing a career is the amount of income that career will generate
over your lifetime. - Correct answers✔✔False
, Chapter 1 discusses 10 principles that form the foundation of personal finance. The principle
stating that a person can expect to earn additional return for increasing his or her investment risk
is the ________ principle. - Correct answers✔✔"risk and return go hand in hand"
What piece of advice might you give to someone for whom the act of saving is an afterthought? -
Correct answers✔✔pay yourself first
Maiko lost her job, and she was forced to sell a rental property because she did not have other
funds (liquid, emergency, etc.) available to meet her financial obligations. What financial
principle best applies to this situation? - Correct answers✔✔Stuff happens, the importance of
liquidity
Which of the following statements describe a good, or effective, job interview? - Correct
answers✔✔Develop answers to the most common interview questions
Gain a thorough knowledge of the company
Look and act with professional confidence
To calculate your net worth, subtract your total debt from your total assets. - Correct
answers✔✔True
The house that you are leasing from a landlord is an example of a tangible asset that you would
list on your balance sheet. - Correct answers✔✔False
When measuring your current financial health, it is important to create - Correct answers✔✔both
a personal balance sheet and an income statement
Your financial situation is insolvent when - Correct answers✔✔your assets are less than your
liabilities
ACTUAL QUESTIONS AND CORRECT
ANSWERS
While each person's financial plan is different, some common factors guide all sound financial
plans: flexibility, liquidity, protection, and minimization of taxes. - Correct answers✔✔True
Evaluating your financial health consists of - Correct answers✔✔determining what you are
worth.
preparing a personal income statement
determining where your money comes from and where it goes.
preparing a personal balance sheet.
You need to review your progress and reevaluate and revise your plan (Step 5) because - Correct
answers✔✔our family situation might change over time.
your net worth changes over time.
your employment situation changes over time.
your financial needs change over the course of your life.
The term that considers having money readily available when you need it is the concept of -
Correct answers✔✔liquidity
The most important aspect of choosing a career is the amount of income that career will generate
over your lifetime. - Correct answers✔✔False
, Chapter 1 discusses 10 principles that form the foundation of personal finance. The principle
stating that a person can expect to earn additional return for increasing his or her investment risk
is the ________ principle. - Correct answers✔✔"risk and return go hand in hand"
What piece of advice might you give to someone for whom the act of saving is an afterthought? -
Correct answers✔✔pay yourself first
Maiko lost her job, and she was forced to sell a rental property because she did not have other
funds (liquid, emergency, etc.) available to meet her financial obligations. What financial
principle best applies to this situation? - Correct answers✔✔Stuff happens, the importance of
liquidity
Which of the following statements describe a good, or effective, job interview? - Correct
answers✔✔Develop answers to the most common interview questions
Gain a thorough knowledge of the company
Look and act with professional confidence
To calculate your net worth, subtract your total debt from your total assets. - Correct
answers✔✔True
The house that you are leasing from a landlord is an example of a tangible asset that you would
list on your balance sheet. - Correct answers✔✔False
When measuring your current financial health, it is important to create - Correct answers✔✔both
a personal balance sheet and an income statement
Your financial situation is insolvent when - Correct answers✔✔your assets are less than your
liabilities
