Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023, Exams of Nursing

Download Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 and more Exams Nursing in PDF only on Docsity! Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 After identifying choices, the next steps in the financial planning process involve all the following calculations EXCEPT - Correct Answer ✅the value of goals. An effect of deflation is that your money - Correct Answer ✅is worth more and buys more. Characteristics of financial advisors to look for include A) manner of compensation. B) ability to give subjective advice. C) professional training. D) a. and c. E) a., b., and c. - Correct Answer ✅D Financial advisors may assist through all the following services EXCEPT - Correct Answer ✅career planning. Financial planning depends on understanding the relationship between goals and - Correct Answer ✅sources of income over time. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 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. In financial planning, effective goals are timely. specific and measurable. realistic and attainable. b. and c. a., b., and c. - Correct Answer ✅a., b., and c. In financial planning, understanding your current financial situation by analyzing your assets, debts, income, and expenses - Correct Answer ✅reveals ways of achieving your goals Individual factors that affect financial thinking include business cycles and employment rate. family structure and health. career choice and age. b. and c. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 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. The present value of a series of cash flows is equal to the sum of - Correct Answer ✅the present value of each cash flow. As the risks of waiting for liquidity increase, the present value, and therefore the future value, of an annuity - Correct Answer ✅Increases. Examples of annuities include all the following EXCEPT - Correct Answer ✅One-time cash flows. In financial planning the best strategy is to - Correct Answer ✅have liquidity sooner rather than later. The future value of an annuity increases when the present value increases. the time value increases the rate of compounding increases a. and b. a., b., and c. - Correct Answer ✅a., b., and c. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 The relationship between the passage of time and the value of assets is called - Correct Answer ✅the time value of money. Time affects value by - Correct Answer ✅discounting value. When deciding on whether to receive cash flows over time or in a lump sum, you should consider present value vs. future value. the rates at which time affects value. the probabilities of winning the lottery. a. and b. a., b., and c. - Correct Answer ✅a. and b. 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. Which of the following statements is true? - Correct Answer ✅The liquidity of an asset affects its value. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 A comprehensive budget includes projections of recurring incomes and expenses. non-recurring expenditures. non-recurring income. a. and b. a., b., and c. - Correct Answer ✅a. and b. All the following assets or activities would be appropriate for developing a specialized budget EXCEPT - Correct Answer ✅operating expenses. Budget variances for incomes and expenses should be analyzed to see if they are caused by a difference in actual quantity, actual price, or both. projected incomes and/or expenditures. microeconomic or macroeconomic factors. a. and b. a., b., and c. - Correct Answer ✅Actual quantity, actual price, or both. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 conduct a full audit. request verification. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. If you are in the 25% or higher tax brackets, your tax rate on long-term capital gains (on assets held more than one year) is - Correct Answer ✅15% In which life stage(s) will you likely have low taxable income and fewer deductions or exemptions? Young adulthood Middle adulthood Retirement a. and c. b. and c. - Correct Answer ✅a. and c. Sources of tax information include the IRS. employers, banks, or brokerages. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 professional tax preparers or software. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. Taxable entities in the federal tax system include all of the following EXCEPT - Correct Answer ✅tax-exempt entities. Taxes withheld from your wages or paid in advance include - Correct Answer ✅FICA and Medicare. You must pay income taxes on IRA distributions. unemployment compensation. Social Security benefits. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. Your total income can be adjusted for all the following items, which the U.S. government feels should not be taxed, EXCEPT - Correct Answer ✅state and local fax refunds. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 One way to diversity investments is to have a balanced portfolio. - Correct Answer ✅True The budget planning process is a useful financial planning tool. - Correct Answer ✅True A budget deficit is not sustainable; it is not financially viable. - Correct Answer ✅True Criteria for tax deductions, exemptions, and credits are stable and seldom change. - Correct Answer ✅False Income tax is a regressive tax; the higher the income the lower the rate. - Correct Answer ✅False 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 In a credit freeze, as a result of suspicion of identity theft or fraud, no one but you can access your credit file. - Correct Answer ✅True Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 desires and choices. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. When risk is low, it makes more sense to wait for liquidity. - Correct Answer ✅True Depending on your tax bracket, your income is taxed at a rate of between 10% and 38%. - Correct Answer ✅True Credentialed credit counselors can help you create a budget and negotiate with creditors. - Correct Answer ✅True When opportunity costs are high, it makes more sense to wait for liquidity. - Correct Answer ✅False Future capital expenditures can be projected on the basis of financial history. recurring incomes. the time value of money. a. and b. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 a., b., and c. - Correct Answer ✅the time value of money. The relationship between your financial statements and your budget is that together they allow you to - Correct Answer ✅project the effects of your financial choices. The value of annuity does not depend on your discount rate or opportunity cost. - Correct Answer ✅False The U.S. government levies taxes on income from all of the following sources EXCEPT - Correct Answer ✅veterans benefits Personal financial planning includes decision making about earning, spending, saving, and investing. - Correct Answer ✅True It's important to be able to perform financial calculations without the use of calculators or financial software. - Correct Answer ✅False The best protection against a possible audit is to have verification for all the incomes and expenses you report. - Correct Answer ✅True It does not make sense to invest in an education before you sell your labor. - Correct Answer ✅False Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 Time discounts value. - Correct Answer ✅True You finance your life and way of living through income you earn by selling your labor or capital. - Correct Answer ✅True 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 A budget should never be merely followed, but should constantly be revised to reflect new information. - Correct Answer ✅True Which of the following assets reduces expenses but does not increase income or store wealth? - Correct Answer ✅Car Interest rates on loans are always lower than interest rates on savings. - Correct Answer ✅False Goals should be short-term, intermediate, and long-term. - Correct Answer ✅True Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 If your credit score is 400, you have near-perfect credit and pose little default risk to lenders. - Correct Answer ✅False Short-term capital gains (losses) are taxed at the same rate as long- term capital gains (losses). - Correct Answer ✅False Business profits are added to total income, and business losses are deducted from total income. - Correct Answer ✅True There are four possible outcomes when you flip a coin, and there is a 25% change of each. - Correct Answer ✅False You use excess liquidity or surplus cash to buy an asset to store wealth until you resell the asset. - Correct Answer ✅True The purpose of pro forma financial statements is to show projected future value. consequences of choices. scenarios for financial planning. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 Taking a second job, becoming unemployed, entering a new career, or becoming self employed are as important as career choices in personal financial planning. - Correct Answer ✅True The discount rate is the opportunity cost of not having liquidity. - Correct Answer ✅True Wages or salary is income from employment or self-employment. - Correct Answer ✅True Investing in assets or selling capital can be more profitable than selling labor. - Correct Answer ✅True Credit is used as a cash management tool or as short-term financing for consumption. - Correct Answer ✅True You should evaluate your feasible choices, calculating the benefits, explicit costs, implicit costs, and strategic costs of each choice. - Correct Answer ✅True The value of both equity and debt includes the benefits of having the asset sooner rather than later. - Correct Answer ✅True Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 Understanding large-scale economic patterns and factors indicating the health of an economy can help you make better financial decisions. - Correct Answer ✅True An example of a demand deposit account is a checking account. - Correct Answer ✅True Time affects liquidity through cash flows. opportunity costs. uncertainty and risk. a. and b. a., b., and c - Correct Answer ✅a., b., and c Financial management is significantly influenced by microeconomic factors. macroeconomic factors. personal factors. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 The nominal future value of your money may be greater or less than the present value. - Correct Answer ✅True Good financial decision making requires that you recognize sunk costs and their consequences. - Correct Answer ✅True A good financial plan must be flexible to respond to unanticipated needs or sudden changes in circumstances. - Correct Answer ✅True The riskier the borrower seems to be, the fewer the sources of credit. - Correct Answer ✅True You can trade in the capital market when you have a budget deficit. - Correct Answer ✅False Default risk is defined by the borrower's ability to repay the interest and principal. - Correct Answer ✅True Your taxable income is your Adjusted Gross Income after deductions, exemptions, and credits. - Correct Answer ✅True If debt creates additional expense without enough additional benefit, it's still worth it. - Correct Answer ✅False Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 The U.S. tax code distinguishes between a business and a hobby that earns or loses money. - Correct Answer ✅True Most states model their tax systems on the federal model or base their tax rates on federally defined income. - Correct Answer ✅True The budget planning process is a useful financial planning tool. - Correct Answer ✅True Interest rate risk is the lender's risk of not being repaid enough to outweigh opportunity cost and provide a profit. - Correct Answer ✅True Excise taxes tax specific consumption items, such as alcohol, cigarettes, or cars. - Correct Answer ✅True In financial planning, risk is a cost, and choice is a benefit. - Correct Answer ✅True Margot has four uncertain choices and their weighted probabilities of happening with the expected result are 20%, 45%, 15%, and - Correct Answer ✅20% Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 Property is an example of an intangible asset. - Correct Answer ✅False Calculating the future value of a series of cash flows is useful when saving for college, a wedding, or retirement. planning for specific cash requirements in the future. deciding whether to save, reduce debt, or invest. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. As the time increases between you and your liquidity, the present value of your future liquidity increases. - Correct Answer ✅False The time value of money can be understood but not calculated concretely. - Correct Answer ✅False A good credit rating would be based on all the following criteria EXCEPT - Correct Answer ✅you depend on credit for regular expenses. Banks that focus on operating cash flow management for businesses are the - Correct Answer ✅commercial banks Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 A 1099 Form is used to report other or miscellaneous incomes to you and to the IRS. - Correct Answer ✅True The operating budget accounts for recurring incomes and expenses. - Correct Answer ✅True The financial decision making process is complicated by all of the following factors EXCEPT - Correct Answer ✅the use of information in planning. Capital expenditures are usually part of a short-term plan or goal. - Correct Answer ✅False When deciding on whether to receive cash flows over time or in a lump sum, you should consider present value vs. future value. the rates at which time affects value. the probabilities of winning the lottery. a. and b. a., b., and c. - Correct Answer ✅a. and b. Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 In the U.S., currency stability and inflation both remained high during the 1980s and 1990s. - Correct Answer ✅False Your can claim exemptions for dependents, including children. elderly parents. disabled siblings. a. and b. a., b., and c. - Correct Answer ✅a., b., and c. Your career choice will have the greatest impact on your financial risk. wealth accumulation. income. b. and c. a. and c. - Correct Answer ✅b. and c. Business cycles include periods of expansion and contraction as measured by the economy's productivity. - Correct Answer ✅True Personal Finance Quizzes CH 1, 2, 4, 5, 6, 7 Question And Answers 2023 Financial planning depends on understanding the relationship between goals and - Correct Answer ✅sources of income over time The purpose of pro forma financial statements is to show the consequences of choices. - Correct Answer ✅True The longer you lend your liquidity, the less compensation you need for your increased opportunity cost and risk. - Correct Answer ✅False If you pay proportionally more taxes due to the more income, you have then you are paying a - Correct Answer ✅progressive tax The U.S. tax code is based on the idea that everyone should help finance the government according to ability to pay. - Correct Answer ✅True