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Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023, Exams of Nursing

Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023

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2023/2024

Available from 10/25/2023

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Download Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 and more Exams Nursing in PDF only on Docsity! Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Because of inflation, the school supplies you bought for $20 last year now cost - Correct Answer ✅$30 Chapter 1 Financial decisions to address needs of a dependent spouse, kids, or parents may include all the following except - Correct Answer ✅changing to self-employment Chapter 1 Financial planing depends on understanding the relationship between goals and - Correct Answer ✅sources of income overtime Chapter 1 Tariq's short-term goal is to purchase a car, but his current situation does not provide the means. Which of the following choices would most likely provide the greatest longer-term benefit with the least risk and the lowest cost? - Correct Answer ✅Save for a car Chapter 1 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 The financial decision making process is complicated by all of the following factors EXCEPT - Correct Answer ✅the use of information in planning Chapter 1 Which life stage typically is best characterized by the following financial circumstances: decrease in expenses and spending needs, more leisure time, less reliance on earnings from employment and more on income from savings and investment, low risk tolerance? - Correct Answer ✅Late adulthood Chapter 1 Which life stage typically is best characterized by the following financial circumstances: no dependents, few assets, little wealth, small income needs, high risk tolerance, focus on career development? - Correct Answer ✅Young adulthood Chapter 1 Which life stage typically is best characterized by the following financial circumstances: career building, family building, increased earning, increased spending, asset accumulation, desire to protect dependents Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Financial advisors may assist through all the following services EXCEPT - Correct Answer ✅career planning Chapter 1 In addition to gross domestic product and rates of employment and unemployment, key measures of the health of an economy include all the following EXCEPT - Correct Answer ✅savings and loans. Chapter 1 In financial planning, effective goals are - Correct Answer ✅timely. specific and measurable. realistic and attainable. Chapter 1 Individual factors may affect all the following financial situations EXCEPT - Correct Answer ✅inflation Chapter 1 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Paying for a home mortgage and children's education leads to greater - Correct Answer ✅income needs Chapter 1 Periods of contraction in the economy often lead to - Correct Answer ✅reduced returns on investment. Chapter 1 The Consumer Price Index is a measure of - Correct Answer ✅inflation Chapter 1 The value of a currency is based on - Correct Answer ✅its usefulness in trade Chapter 1 Your career choice will have the greatest impact on your - Correct Answer ✅wealth accumulation. income Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 1 Your time horizon for financial planning is - Correct Answer ✅life long Chapter 1 An effect of deflation is that your money - Correct Answer ✅is worth more and buys more Chapter 1 Characteristics of financial advisors to look for include - Correct Answer ✅manner of compensation. professional training Chapter 1 If your financial advisor is paid by commission rather than fee-for- service, then you should expect that the advisor will - Correct Answer ✅want to sell you specific financial products. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 2 Factors to consider when deciding to borrow capital include - Correct Answer ✅costs in relation to the asset's value. the risk of costs exceeding benefits. the interest rate, and time to repay Chapter 2 If you had a budget surplus, which of the following choices would best increase that surplus? - Correct Answer ✅Save and invest Chapter 2 Rachel trained to be an EMT but is entering the workforce at a time when EMTs are plentiful and not in great demand. In this case, she is - Correct Answer ✅in a buyer's market. likely to find fewer, lower-paying jobs Chapter 2 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Ryan has a choice of paying cash or over time for a smartphone. What would be his opportunity cost of paying cash? - Correct Answer ✅He would lose liquidity. He would lose income from savings. Chapter 2 Ryan has a choice of paying cash or over time for a smartphone. What would be his opportunity cost of paying over time? - Correct Answer ✅He would ultimately pay more. Chapter 2 Shannon's monthly expenses exceed her monthly income. She has no way to increase her income just now, so her best choice to reduce her budget deficit is to - Correct Answer ✅find ways to cut spending Chapter 2 The best uses of debt include all the following EXCEPT - Correct Answer ✅to cover a budget deficit. Chapter 2 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 The best way(s) to accumulate assets and increase your wealth is - Correct Answer ✅to invest budget surplus. to have income greater than expenses. to protect your income. Chapter 2 The stocks in Wayne's investment portfolio lost value in the recession, but he also had CDs and a savings account. The effect of his investment diversification on his finances was to - Correct Answer ✅reduce risk. Chapter 2 When is the best time to get an education? - Correct Answer ✅Before you sell your labor Chapter 2 A better investment asset is one that - Correct Answer ✅increases in value. creates a capital gain. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 nvestments in assets may be diversified by - Correct Answer ✅investing in a variety of assets. Chapter 2 Making good financial decisions involves understanding - Correct Answer ✅how the economy works. how financial decisions are made. how money flows through the economy. Chapter 2 Personal finance is about all of the following processes EXCEPT - Correct Answer ✅preventing exposure to risks. Chapter 2 Sources of income may be diversified by - Correct Answer ✅having more than one employer Chapter 2 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Storing wealth, creating income, and reducing future expenses are all uses of - Correct Answer ✅assets. Chapter 2 Ways to eliminate a budget deficit are: - Correct Answer ✅to increase income. to reduce expenses. to borrow. Chapter 2 The cost of debt is - Correct Answer ✅interest. Chapter 2 The cost of equity is - Correct Answer ✅sharing the benefits of investment. Chapter 2 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 When your expenses are greater than your income you have - Correct Answer ✅a budget deficit. Chapter 2 Which of the following assets do/does not reduce expenses but increase(s) income and store(s) wealth? - Correct Answer ✅Investment Chapter 2 A balance sheet is a list of - Correct Answer ✅assets. debts or liabilities. equity or net worth. Chapter 3 A summary of income and expenses over a period of time is called - Correct Answer ✅an income statement. Chapter 3 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 3 The Accounting Equation states that - Correct Answer ✅Assets = Liabilities + Equity Chapter 3 The value of assets is equal to the value of liabilities plus the value of - Correct Answer ✅equity Chapter 3 To calculate your cash flow to assets ratio (how much cash flow supports assets), you would divide the value of your net cash flow by the value of your - Correct Answer ✅total assets Chapter 3 To calculate your cash flow to income ratio (how much payments for investing and financing take from income), you would divide your net cash flow by your - Correct Answer ✅net income. Chapter 3 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 To calculate your debt to assets ratio (how much asset value there is to satisfy your debt), you would divide your total debt by the value of your - Correct Answer ✅total assets. Chapter 3 To calculate your net income margin to determine how much of your income goes to expenses, you would divide your net income by your - Correct Answer ✅total income. Chapter 3 To see what percentage of your total income is used for each expense you would create - Correct Answer ✅a common-size income statement. Chapter 3 Understanding your current financial situation requires the ability to - Correct Answer ✅calculate returns on investment. follow basic accounting procedures. create financial statements Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 3 Alex realizes from his balance sheet that he could be facing personal bankruptcy within the year. He can prevent this from happening by - Correct Answer ✅liquidating assets to pay creditors. achieving positive net worth. refinancing debt on different terms. Chapter 3 All of the following financial ratios should be greater or bigger EXCEPT - Correct Answer ✅total debt. Chapter 3 Cam wants to know how much larger his debts are than his assets and if he earns enough to afford the interest. What should he look at? - Correct Answer ✅Debt to asset ratio Interest coverage ratio Chapter 3 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 3 On an income statement, each income and expense is shown as a percentage of - Correct Answer ✅total income. Chapter 3 On the balance sheet, each asset, liability, and net worth is shown as a percentage of - Correct Answer ✅total assets. Chapter 3 Personal financial planning software produces all the following kinds of reports EXCEPT - Correct Answer ✅credit reports. Chapter 3 Sam wants to know if he can afford the debt he is carrying and, if so, how much leeway he has for assuming more debt. What should he look at? - Correct Answer ✅Financial ratios Chapter 3 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Serena wants to see how her money from all sources came in and went out for all uses during each month of the past year. Which kind of financial statement does she need? - Correct Answer ✅Cash flow statement Chapter 3 Using your common-size income statement, you rank your expenses by size and discover that a surprisingly large percentage of your income is going to recreation. How can you use this information? - Correct Answer ✅Re-allocate income. Make different lifestyle choices. Reduce recreation expense. Chapter 3 A kind of annuity that consists of cash flows of equal amounts occurring at regular intervals and that continues indefinitely is - Correct Answer ✅a perpetuity. Chapter 4 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 As the risks of waiting for liquidity increase, the present value, and therefore the future value, of an annuity - Correct Answer ✅increases Chapter 4 Calculating the future value of a series of cash flows is useful when - Correct Answer ✅saving for college, a wedding, or retirement. planning for specific cash requirements in the future. deciding whether to save, reduce debt, or invest. Chapter 4 Cash flows in the future are - Correct Answer ✅illiquid Chapter 4 Margot has four uncertain choices and their weighted probabilities of happening with the expected result are 20%, 45%, 15%, and - Correct Answer ✅20%. Chapter 4 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 4 The sum of each possible outcome's probability multiplied by its result is the - Correct Answer ✅expected value of an event. Chapter 4 Time affects liquidity through - Correct Answer ✅cash flows. opportunity costs. uncertainty and risk. Chapter 4 To calculate the present value of an annuity you need to know all the following EXCEPT - Correct Answer ✅the future value of the cash flows. Chapter 4 To relate PV to FV you need to know - Correct Answer ✅what the PV or FV is. when the FV will be. the discount rate. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 4 When deciding on whether to receive cash flows over time or in a lump sum, you should consider - Correct Answer ✅present value vs. future value. the rates at which time affects value Chapter 4 When faced with uncertainty of an alternative that involves an independent event it is often helpful to be able to calculate its - Correct Answer ✅expected value. Chapter 4 Time affects value by - Correct Answer ✅discounting value. Chapter 4 Which of the following statements is true? - Correct Answer ✅The liquidity of an asset affects its value. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 4 You can project the impact of each alternative financial choice on your future finances by using - Correct Answer ✅pro forma financial statements. Chapter 4 Examples of annuities include all the following EXCEPT - Correct Answer ✅one-time cash flows. Chapter 4 In financial planning the best strategy is to - Correct Answer ✅have liquidity sooner rather than later. Chapter 4 The PV of your future liquidity decreases - Correct Answer ✅as r increases. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 5 Recurring incomes and expenses - Correct Answer ✅satisfy lifestyle goals. Chapter 5 The appropriate time period for the budget process is based on - Correct Answer ✅getting manageable and meaningful data. Chapter 5 The cash budget's greatest value is in clarifying - Correct Answer ✅risks and choices in the timing of cash flows. Chapter 5 The timing of your budget process depends on - Correct Answer ✅how much financial activity you have. how much financial discipline you need. how much financial data you generate. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 5 You should have at least one full year's worth of data on incomes and expenditures to see - Correct Answer ✅seasonal variations. periodic items. monthly averages. Chapter 5 A budget for long-term goals involving non-recurring items is called a(n) - Correct Answer ✅capital budget. Chapter 5 A budget for short-term goals involving recurring items is called a(n) - Correct Answer ✅operating budget. Chapter 5 Budgets can be prepared conservatively by - Correct Answer ✅underestimating earnings. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 5 Creating a budget involves - Correct Answer ✅projecting realistic behavior. questioning your assumptions. reviewing your financial records Chapter 5 Examples of recurring incomes are - Correct Answer ✅wages or salary. interest or dividends Chapter 5 Future incomes and expenses can be projected for quantity and price on the basis of - Correct Answer ✅probability. volatility. predictability. Chapter 5 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 The value of your choices is affected by - Correct Answer ✅personal and economic factors. the relationships of time and risk. Chapter 5 To avoid unwelcome adjustments, you should - Correct Answer ✅be conservative in your expectations. Chapter 5 With a line of credit you can - Correct Answer ✅borrow money as needed, up to a limit. pay down each loan as desired. pay interest only on the outstanding balance Chapter 5 You can project recurring incomes and expenses using - Correct Answer ✅personal financial history. new information and microeconomic factors. macroeconomic factors. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 5 All of the following are examples of consumption taxes EXCEPT - Correct Answer ✅property taxes. Chapter 6 Income that is not taxed by the U.S. government and does not have to be reported as income includes all of the following EXCEPT - Correct Answer ✅most distributions from pensions. Chapter 6 Tax advantages were created to encourage certain financial goals, including - Correct Answer ✅mortgage interest deductions. defined contribution plans. education and health care savings accounts. Chapter 6 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Tax deductions for non-discretionary expenditures include all of the following EXCEPT - Correct Answer ✅self-employment taxes. Chapter 6 Taxes may be imposed by all the following government jurisdictions EXCEPT - Correct Answer ✅wards and precincts. Chapter 6 Taxes may be imposed on all of the following sources of wealth EXCEPT - Correct Answer ✅most gifts. Chapter 6 The U.S. government levies taxes on income from all of the following sources EXCEPT - Correct Answer ✅welfare benefits. Chapter 6 The U.S. government offers tax deductions for all of the following items EXCEPT - Correct Answer ✅gains from the sale of assets. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 If you pay proportionally more taxes due to the less income you have, then you are paying a - Correct Answer ✅regressive tax. Chapter 6 If you pay proportionally more taxes due to the more income, you have then you are paying a - Correct Answer ✅progressive tax. Chapter 6 In which life stage(s) will you likely have high taxable income and many deductions, exemptions, or credits? - Correct Answer ✅Middle adulthood Chapter 6 In which life stage(s) will you likely have low taxable income and fewer deductions or exemptions? - Correct Answer ✅Young adulthood Retirement Chapter 6 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Interest and dividend income is reported on - Correct Answer ✅Schedule B. Chapter 6 Rental and royalty income is reported on - Correct Answer ✅Schedule E. Chapter 6 Separate filing statuses for reporting individual income tax include all the following EXCEPT - Correct Answer ✅divorced. Chapter 6 Sources of tax information include - Correct Answer ✅the IRS. employers, banks, or brokerages. professional tax preparers or software. Chapter 6 Taxable entities in the federal tax system include all of the following EXCEPT - Correct Answer ✅tax-exempt entities. Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 6 Taxable individual income includes - Correct Answer ✅distributions from trusts. stock dividends. interest from banks. Chapter 6 Taxation that discriminates against the less affluent by decreasing the tax rate as the amount to be taxed increases is called - Correct Answer ✅regressive Chapter 6 Taxes withheld from your wages or paid in advance include - Correct Answer ✅FICA and Medicare. Chapter 6 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 The purpose of credit ratings is to estimate - Correct Answer ✅how dependent you are on credit. whether you can afford to take on more credit. whether you pay your debts. Chapter 7 Your credit score is determined primarily on the basis of - Correct Answer ✅your credit history. Chapter 7 A loan structure that benefits lenders more than borrowers by minimizing interest rate risk is the - Correct Answer ✅floating rate loan. Chapter 7 Banks that focus on operating cash flow management for businesses are the - Correct Answer ✅commercial banks. Chapter 7 Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Diversifying your savings in a series of instruments with different maturities is a strategy known as - Correct Answer ✅laddering Chapter 7 Electronic options for withdrawals or payments include - Correct Answer ✅automatic payments. debit and ATM cards Chapter 7 Financial management is significantly influenced by - Correct Answer ✅microeconomic factors. macroeconomic factors. personal factors. Chapter 7 Information you need to protect from identify theft includes your - Correct Answer ✅credit card and bank account numbers. driver's license and passport numbers. Social Security number Personal Finance Part 1 Exam Question And Answers with Quizzes (100%)2023 Chapter 7 Kinds of credit include all the following EXCEPT - Correct Answer ✅debit cards. Chapter 7 Of the following saving instruments, which is/are most likely to give you the highest price for your liquidity or the highest compensation for your opportunity cost and risk? - Correct Answer ✅Certificates of Deposit Money market mutual funds Chapter 7 The ability to delay payment for different items from different vendors, up to an amount limit, during a period of time is called - Correct Answer ✅revolving credit. Chapter 7 The cost of credit stems primarily from - Correct Answer ✅default risk.