Finance 429 Final Exam

Personal financial management is important because ita. limits consumptionb. makes personal financial goals easier to achievec. lessens economic differences among individualsd. controls inflation e. uses money as an end Makes personal financial goals easier to achieve
Saving for a child’s education is an example ofa. deferred spendingb. propensity to consumec. estate planningd. a tangible assete. accumulating wealth Deferred spending
The average propensity to consume refers to thea. percentage of income spent for current consumptionb. face that people with higher incomes spend more for the necessities of lifec. dollars of income spent for current consumptiond. expenditures for the minimum necessities of lifee. percentage of income saved percentage of income spent for current consumption
Becky graduated with a masters degree in Personal Financial Planning. After working two years in a small financial planning firm, she earns $60,000 annually and saves $10,000 a year. What is her propensity to consume?a. 75.7%b. 95.5%c. 83.3%d. 16.7%e. 25.5% 83.3%
The amount of money we set aside for future consumption will be determined bya. the current needs of our familyb. our education levelc. our level of current wealthd. the cost of life’s necessitiese. how much we currently earn and spend how much we currently earn and spend
Effective financial plans shoulda. reflect your personality b. all of these choices are correctc. consider your wants and needsd. reflect your emotional reactions to moneye. consider your financial resources all of these choices are correct
Family financial goals should bea. realistically attainableb. individually determinedc. very general in natured. reserved for retirement planninge. set once for a lifetime realistically attainable
Utility refers toa. none of these are correctb. how much money you receive during the yearc. the value of your investments at any given timed. the satisfaction you receive from purchasing somethinge. the total of your spending for the year the satisfaction you receive from purchasing something
The most important financial planning for young people concernsa. insuranceb. investmentc. taxesd. retiremente. career career
Martha is 80 and has a very high net worth. Her most important financial concern is probably hera. savingsb. insurancec. estated. employee benefitse. career estate
Pat and Xiong are in their late 20s with 3 young children. Their most important financial planning concerns would probably include all of the following EXCEPT a. employee benefit planningb. liability and insurance planning c. asset acquisition planningd. savings and investment planninge.retirement and estate planning retirement and estate planning
Employee benefits may includea. retirement plansb. employee discountsc. tuition reimbursementsd. health insurancee. all answers are correct all answers are correct
Tax planning is commonly done toa. minimize taxesb. pay extra taxesc. change income patterns to avoid taxesd. learn the tax codee. reduce debt balances minimize taxes
Estate planning involvesa. planning retirementsb. valuation and auctioning of your valuablesc. dissolution of all privately held corporationsd. considering how your wealth can be most effectively passed on to heirse. payment of all back taxes considering how your wealth can be most effectively passed on to heirs
As the rate of inflation increases,a. the cost of living goes downb. interest rates decreasec. pay checks decreased. retirement plans have more difficulty meeting their goalse. purchasing power of a dollar increases retirement plans have more difficulty meeting their goals

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