Filters
Question type
Study Flashcards

Your decision about one component of your financial plan can affect all other components. Which statement is true?


A) The amount of life insurance you choose to carry has no effect on your future estate value.
B) There will never be any trade-offs to consider when making decisions about your financial plan.
C) If you make poor investment decisions, you may have to work longer than planned.
D) You should contribute all of your extra money to your retirement account even if it means you don't have money available for products and services today.

Correct Answer

verifed

verified

Making personal finance decisions enhances your employability because


A) employers prefer to hire people with significant assets.
B) making decisions increases your decisiveness.
C) you are managing yourself and showing initiative.
D) None of these are correct.

Correct Answer

verifed

verified

Retirement planning should begin


A) as early as possible in order that you accumulate sufficient funds for retirement.
B) as soon as you start working full time.
C) a few years before you plan on retiring.
D) you do not need to plan since Social Security and your firm's pension will be sufficient.

Correct Answer

verifed

verified

Match the goals in the first column with the items in the second column: -long-term goal

Correct Answer

verifed

verified

Most investments are subject to ________, which is the uncertainty surrounding their potential return.

Correct Answer

verifed

verified

Which of the following items is not a liability?


A) The balance due on your credit card
B) Your college loans
C) The wages you give up to take a class
D) An IOU to your roommate

Correct Answer

verifed

verified

A measure of your wealth is


A) the highest level of education you've attained.
B) the amount of your annual income.
C) the current market value of what you own minus the value of what you owe.
D) your tax bracket.

Correct Answer

verifed

verified

Which of the following would not help protect you from unethical or incompetent advice from a financial adviser?


A) Educating yourself on various financial products
B) Testing questionable advice with another financial adviser/broker
C) Relying entirely on the adviser as to when to buy and sell
D) Knowing your risk tolerance

Correct Answer

verifed

verified

List the six components of a financial plan.

Correct Answer

verifed

verified

(A) BUDGETING AND TAX PLANNING...

View Answer

What is the core purpose of buying insurance?


A) Protect your wealth and assets
B) Make sure you make money on any claim
C) Insurance is an expense a careful investor needs to minimize
D) Make sure you leave an estate when you are gone

Correct Answer

verifed

verified

________ management involves decisions regarding how much money to retain in a liquid form and how to allocate funds among short-term investment instruments.


A) Investment
B) Money
C) Credit
D) Liquidity

Correct Answer

verifed

verified

After your financial plan is developed it should be


A) locked away for safe-keeping so it isn't stolen.
B) reviewed every five years.
C) monitored and updated annually.
D) sold to others.

Correct Answer

verifed

verified

Which of the following is not a decision involved in managing your liquidity?


A) Deciding how much money to keep in savings
B) Choosing between credit cards
C) Determining how much money to save versus how much to spend
D) Building and maintaining a monthly/yearly budget with allocations to expenses and investments

Correct Answer

verifed

verified

Your ability to access funds to cover any short-term cash deficiencies is your ________.

Correct Answer

verifed

verified

________ involves having access to funds to cover any short-term cash needs.


A) Investment
B) Money
C) Liquidity
D) Risk

Correct Answer

verifed

verified

Your financial plan is usually strongly influenced by


A) your parents.
B) your tolerance for risk and your self-discipline.
C) your peers.
D) your age.

Correct Answer

verifed

verified

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

Correct Answer

verifed

verified

A plan for ________ is needed to determine how much you could afford to borrow, the length of the loan, and how to select a loan that charges competitive interest rates.


A) buying
B) financing
C) spending
D) saving

Correct Answer

verifed

verified

Organizational skills are an important component in developing a personal financial plan because


A) decisions related to one component of the plan may affect all other components.
B) you can apply organizational skills on the job.
C) it is hard to make a decision when your desk is a mess.
D) Both A and B are correct.

Correct Answer

verifed

verified

Use the following description of terms to answer the matching questions below: A) forecasting future expenses and savings B) uncertainty on a potential return on an investment C) what you own D) determining how much money you should set aside for retirement E) what you owe F) decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments G) determining how your wealth will be distributed before or upon your death H) current value of what you own minus what you owe I) source of current information about a variety of topics J) access to funds to cover any short-term cash deficiencies -risk

Correct Answer

verifed

verified

Showing 61 - 80 of 116

Related Exams

Exam 2

Planning With Personal Financial Statements

125 Questions

Exam 3

Applying Time Value Concepts

118 Questions

Exam 4

Using Tax Concepts for Planning

94 Questions

Exam 5

Banking and Interest Rates

122 Questions

Exam 6

Managing Your Money

112 Questions

Exam 7

Assessing and Securing Your Credit

121 Questions

Exam 8

Managing Your Credit

120 Questions

Exam 9

Personal Loans

127 Questions

Exam 10

Purchasing and Financing a Home

132 Questions

Exam 11

Auto and Homeowners Insurance

136 Questions

Exam 12

Health and Disability Insurance

109 Questions

Exam 13

Life Insurance

114 Questions

Exam 14

Investing Fundamentals

126 Questions

Exam 15

Investing in Stocks

129 Questions

Exam 16

Investing in Bonds

114 Questions

Exam 17

Investing in Mutual Funds

138 Questions

Exam 18

Asset Allocation

111 Questions

Exam 19

Retirement Planning

115 Questions

Exam 20

Estate Planning

105 Questions

Exam 21

Integrating the Components of a Financial Plan

98 Questions

Show Answer