Question 1

Many Americans have money problems because of

Accepted Answer

A)   Poor planning and weak money management habits
B)   Too many clearly defined goals
C)   Proper use of credit
D)   Not enough advertising to make effective decisions
E)   Controlled spendingF) All of the above
G) A) and B)

Question 2

Which of the following long-term goals is stated most clearly using the SMART approach?

Accepted Answer

A)   Buy a car for less than $15,000 within 6 months
B)   Retire in 10 years at age 65
C)   Purchase a house with a mortgage no greater than $150,000 within 5 years
D)   Set up an emergency fund
E)   Invest $50 per month for the next 12 years for my nephew's college fundF) C) and D)
G) A) and B)

Question 3

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a(n)

Accepted Answer

A)   Insurance prospectus.
B)   Financial plan.
C)   Budget.
D)   Investment forecast.
E)   Statement.F) A) and E)
G) None of the above

Question 4

The goal of purchasing a long-term care insurance policy would be most appropriate for

Accepted Answer

A)  A young couple without children.
B)  A single parent with a preschool daughter.
C)  An unmarried couple without children.
D)  An older single person with children.
E)  A young single individual.F) C) and D)
G) A) and D)

Question 5

Which of the following short-term goals is stated most clearly using the SMART approach?

Accepted Answer

A)   Buy a car for less than $15,000 within 6 months
B)   Retire in 10 years at age 65 with $2,000,000 in my 401(k)  account
C)   Purchase a house with a mortgage no greater than $150,000 within 5 years
D)   Set up an emergency fund
E)   Invest $50 per month for the next 12 years for my nephew's college fundF) C) and D)
G) A) and C)

Question 6

Changes in the cost of money is referred to as ____________ risk.

Accepted Answer

A)   interest-rate
B)   inflation
C)   income
D)   personal
E)   liquidityF) A) and D)
G) A) and E)

Exam 1: Personal Financial Planning in Action

Many Americans have money problems because of

Correct Answer
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Which of the following short-term goals is stated most clearly using the SMART approach?

Correct Answer
verified

The goal of purchasing a long-term care insurance policy would be most appropriate for

Correct Answer
verified

Which of the following long-term goals is stated most clearly using the SMART approach?

Correct Answer
verified

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a(n)

Correct Answer
verified

Changes in the cost of money is referred to as ____________ risk.

Correct Answer
verified

Exam 1: Personal Financial Planning in Action

Many Americans have money problems because of

Correct AnswerverifiedShow Answer

Which of the following short-term goals is stated most clearly using the SMART approach?

Correct AnswerverifiedShow Answer

The goal of purchasing a long-term care insurance policy would be most appropriate for

Correct AnswerverifiedShow Answer

Which of the following long-term goals is stated most clearly using the SMART approach?

Correct AnswerverifiedShow Answer

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a(n)

Correct AnswerverifiedShow Answer

Changes in the cost of money is referred to as ____________ risk.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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