Question 1

What are the six steps in the financial planning process?

Accepted Answer

The personal financial planning process ...

Question 2

Sophia Martin's goal has been to travel around the world.She has now been traveling for six months and she has decided she is a little tired of living out of a suitcase.She has decided to go home,look for a part time job,and take shorter trips to locations around the world that appeal to her.Which step in the financial planning process does this scenario most likely demonstrate?

Accepted Answer

A)  Developing her financial goals
B)  Identifying alternative courses of action
C)  Evaluating her alternatives
D)  Implementing her financial plan
E)  Reviewing and revising her financial planF) All of the above
G) A) and D)

Question 3

Developing and using a budget is part of the "obtaining" component of financial planning.

Accepted Answer

A) True 
 B)False

Question 4

People are commonly overwhelmed by the many influences on personal financial decisions.What are the factors affecting personal financial planning?

Accepted Answer

Students answers will vary.Factors might...

Question 5

The changing cost of money when borrowing is referred to as ________ risk.

Accepted Answer

A)  interest rate
B)  inflation
C)  income
D)  liquidity
E)  personalF) C) and D)
G) C) and E)

Question 6

The first step of the financial planning process is to:

Accepted Answer

A)  develop financial goals.
B)  implement the financial plan.
C)  determine your current financial situation.
D)  review and revise your financial plan.
E)  create a financial action plan.F) A) and B)
G) None of the above

Question 7

The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

Accepted Answer

A)  sharing
B)  saving
C)  obtaining
D)  borrowing
E)  protectingF) A) and B)
G) B) and C)

Question 8

Time value of money refers to changes in consumer spending when inflation occurs.

Accepted Answer

A) True 
 B)False

Question 9

When prices are increasing at a rate of 12 percent,the cost of products would double in about how many years?

Accepted Answer

A)  24 years
B)  18 years
C)  12 years
D)  6 years
E)  3 yearsF) B) and C)
G) All of the above

Question 10

Opportunity costs refer to what a person gives up when making a choice.

Accepted Answer

A) True 
 B)False

Question 11

The main responsibility of The Fed is to:

Accepted Answer

A)  maintain an adequate supply of money.
B)  approve spending by Congress.
C)  set federal income tax rates.
D)  determine illegal business activities.
E)  maintain a balanced budget for the federal government.F) A) and B)
G) A) and C)

Question 12

Determining your current financial situation is a part of which step in the financial planning process?

Accepted Answer

A)  First
B)  Second
C)  Third
D)  Fourth
E)  FifthF) A) and E)
G) A) and C)

Question 13

Robo-advisors,3-D printing,robotics,wearable technology,and other innovations will influence your financial decisions in the following ways,except:

Accepted Answer

A)  how you earn
B)  how you spend
C)  how you invest
D)  how you travel
E)  how you saveF) C) and D)
G) A) and E)

Question 14

Financial planning information sources generally do not include:

Accepted Answer

A)  print media
B)  financial specialists
C)  financial institutions
D)  personal friends
E)  digital mediaF) A) and E)
G) A) and D)

Question 15

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

Accepted Answer

The Rule of 72 helps determine...

Question 16

Describe the S-M-A-R-T approach to developing financial goals.Give an example.

Accepted Answer

Financial Goals should be spec...

Question 17

Paul Carter is 42 years old,married and has three children,ages 15,13 and 8.This discussion is a demonstration of what factor in personal financial planning?

Accepted Answer

A)  Adult life cycle
B)  Economic factors
C)  Global influences
D)  Opportunity costs
E)  None of theseF) A) and B)
G) A) and C)

Question 18

You are planning to buy a house in five years.Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Accepted Answer

A)  $6,000
B)  $6,590
C)  $7,470
D)  $9,400
E)  $10,000F) A) and C)
G) B) and E)

Question 19

Resources for financial planning can be found from:

Accepted Answer

A)  print media.
B)  digital media.
C)  financial institutions.
D)  financial specialists.
E)  All of these.F) None of the above
G) C) and D)

Question 20

The financial planning process concludes with efforts to:

Accepted Answer

A)  develop financial goals.
B)  create a financial action plan.
C)  determine your current financial situation.
D)  implement the financial action plan.
E)  review and revise your financial plan.F) None of the above
G) C) and D)

Exam 1: Personal Finance Basics and the Time Value of Money

The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

Correct Answer
verified

People are commonly overwhelmed by the many influences on personal financial decisions.What are the factors affecting personal financial planning?

Correct Answer
verified
Students answers will vary.Factors might...
View Answer

Financial planning information sources generally do not include:

Correct Answer
verified

The first step of the financial planning process is to:

Correct Answer
verified

Developing and using a budget is part of the "obtaining" component of financial planning.

Correct Answer
verified

The changing cost of money when borrowing is referred to as ________ risk.

Correct Answer
verified

The financial planning process concludes with efforts to:

Correct Answer
verified

When prices are increasing at a rate of 12 percent,the cost of products would double in about how many years?

Correct Answer
verified

Time value of money refers to changes in consumer spending when inflation occurs.

Correct Answer
verified

What are the six steps in the financial planning process?

Correct Answer
verified
The personal financial planning process ...
View Answer

Describe the S-M-A-R-T approach to developing financial goals.Give an example.

Correct Answer
verified
Financial Goals should be spec...
View Answer

The main responsibility of The Fed is to:

Correct Answer
verified

You are planning to buy a house in five years.Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Correct Answer
verified

Robo-advisors,3-D printing,robotics,wearable technology,and other innovations will influence your financial decisions in the following ways,except:

Correct Answer
verified

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

Correct Answer
verified
The Rule of 72 helps determine...
View Answer

Correct Answer
verified

Determining your current financial situation is a part of which step in the financial planning process?

Correct Answer
verified

Paul Carter is 42 years old,married and has three children,ages 15,13 and 8.This discussion is a demonstration of what factor in personal financial planning?

Correct Answer
verified

Opportunity costs refer to what a person gives up when making a choice.

Correct Answer
verified

Resources for financial planning can be found from:

Correct Answer
verified

Exam 1: Personal Finance Basics and the Time Value of Money

The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

Correct AnswerverifiedShow Answer

People are commonly overwhelmed by the many influences on personal financial decisions.What are the factors affecting personal financial planning?

Correct AnswerverifiedStudents answers will vary.Factors might...View AnswerShow Answer

Financial planning information sources generally do not include:

Correct AnswerverifiedShow Answer

The first step of the financial planning process is to:

Correct AnswerverifiedShow Answer

Developing and using a budget is part of the "obtaining" component of financial planning.

Correct AnswerverifiedShow Answer

The changing cost of money when borrowing is referred to as ________ risk.

Correct AnswerverifiedShow Answer

The financial planning process concludes with efforts to:

Correct AnswerverifiedShow Answer

When prices are increasing at a rate of 12 percent,the cost of products would double in about how many years?

Correct AnswerverifiedShow Answer

Time value of money refers to changes in consumer spending when inflation occurs.

Correct AnswerverifiedShow Answer

What are the six steps in the financial planning process?

Correct AnswerverifiedThe personal financial planning process ...View AnswerShow Answer

Describe the S-M-A-R-T approach to developing financial goals.Give an example.

Correct AnswerverifiedFinancial Goals should be spec...View AnswerShow Answer

The main responsibility of The Fed is to:

Correct AnswerverifiedShow Answer

You are planning to buy a house in five years.Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Correct AnswerverifiedShow Answer

Robo-advisors,3-D printing,robotics,wearable technology,and other innovations will influence your financial decisions in the following ways,except:

Correct AnswerverifiedShow Answer

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

Correct AnswerverifiedThe Rule of 72 helps determine...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Determining your current financial situation is a part of which step in the financial planning process?

Correct AnswerverifiedShow Answer

Paul Carter is 42 years old,married and has three children,ages 15,13 and 8.This discussion is a demonstration of what factor in personal financial planning?

Correct AnswerverifiedShow Answer

Opportunity costs refer to what a person gives up when making a choice.

Correct AnswerverifiedShow Answer

Resources for financial planning can be found from:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Students answers will vary.Factors might...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The personal financial planning process ...
View Answer

Correct Answer
verified
Financial Goals should be spec...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Rule of 72 helps determine...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified