Quiz 2: Measuring Your Financial Health and Making a Plan
Business
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Q 5Q 5
According to the Keown book,the median net worth for American families in which the head of the household is less than 35 years old is below $10,000.
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True False
Q 6Q 6
A vehicle leased in your name is an example of a tangible asset that you would list on your balance sheet.
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True False
Q 7Q 7
The house that you are leasing from a landlord is an example of a tangible asset that you would list on your balance sheet.
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True False
Q 8Q 8
The term "fair market value" refers to how the price of an asset has changed since its original purchase.
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True False
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Q 11Q 11
Before you can hope to achieve your financial goals,you will need to first measure your current financial health and develop a plan and a budget.
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True False
Q 12Q 12
Planning and budgeting requires
A) control.
B) financial restraint.
C) discipline.
D) all of the above.
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Multiple Choice
Q 13Q 13
The first section of a balance sheet represents your
A) net worth.
B) financial goals.
C) assets.
D) liabilities.
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Multiple Choice
Q 14Q 14
When measuring your current financial health it is important to create
A) positive net worth.
B) a personal balance sheet.
C) an income statement.
D) positive net income.
E) both B and C.
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Multiple Choice
Q 15Q 15
Assets that you purchase for the purpose of accumulating wealth to satisfy your financial goals are called
A) monetary assets.
B) intangible assets.
C) investment assets.
D) all of the above.
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Multiple Choice
Q 16Q 16
Liabilities are best described as
A) monetary items of value that you own.
B) financial debts and obligations that you owe.
C) your net worth.
D) assets that depreciate over time.
E) intangible obligations.
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Multiple Choice
Q 17Q 17
________ can be more than or less than the price you paid for a given asset,depending on what others are willing to pay for that asset today.
A) Net value
B) Fair market value
C) Intrinsic value
D) Sentimental value
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Multiple Choice
Q 18Q 18
Your ________include cash,checking and savings account balances,and money market funds.
A) monetary assets
B) tangible assets
C) physical assets
D) investment assets
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Multiple Choice
Q 19Q 19
The term "fair market value" refers to
A) what an asset could be sold for today.
B) what you paid when you purchased an asset.
C) what an asset will be worth at some point in the future.
D) how the price of an asset has changed since its original purchase.
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Multiple Choice
Q 20Q 20
The common thread among investment assets is that
A) they are purchased for the purpose of generating wealth.
B) they are purchased for one's personal use, like a vehicle or residence.
C) they provide the liquidity needed in case of an emergency.
D) they must be easily turned into cash with little or no loss in value.
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Multiple Choice
Q 21Q 21
Your financial situation is insolvent when
A) your expenses exceed your income.
B) your assets are less than your liabilities.
C) your net worth is positive.
D) your debt ratio is too high.
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Multiple Choice
Q 22Q 22
Which of the following are not typically found on a balance sheet?
A) Monetary assets
B) Mortgage interest payments
C) Home's current market value
D) Interest earned on a CD
E) Both B and D
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Multiple Choice
Q 23Q 23
Which of the following items would not be included on a balance sheet?
A) Balances owed on your utility bills
B) Balances owed on your credit card(s)
C) Mortgage payment paid
D) Automobile loan balance
E) Student loan balance
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Multiple Choice
Q 24Q 24
Which financial planning document should you use to measure your current financial condition?
A) Budget
B) Cash budget
C) Balance sheet
D) Income statement
E) Statement of financial ratios
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Multiple Choice
Q 25Q 25
Items on the balance sheet that represent amounts owed to others are termed
A) assets.
B) liabilities.
C) revenues.
D) expenses.
E) none of the above.
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Multiple Choice
Q 26Q 26
When including an asset such as a car on your balance sheet
A) list its current value as indicated in a blue book or site like www.edmunds.com.
B) list the original purchase price of the vehicle.
C) list the amount it would cost to purchase a new model of this vehicle.
D) none of the above.
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Multiple Choice
Q 27Q 27
A physical asset such as a high-definition,flat-screen TV or a Harley Davidson motorcycle is called a(n)
A) financial asset.
B) liability.
C) tangible asset.
D) investment.
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Multiple Choice
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Essay
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Q 30Q 30
The interest charge on your credit card statement should be listed on your personal income statement as a variable expense.
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Q 31Q 31
An income statement tracks the amount of money you have coming in and going out over some period of time,such as a month or a year.
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True False
Q 32Q 32
Your net worth,or your general level of financial worth,is found by
A) subtracting your expenses from your income.
B) dividing your monetary assets by your current liabilities.
C) subtracting your liabilities from your assets.
D) dividing monthly debt (less a mortgage payment) by monthly income.
E) subtracting current liabilities from monetary assets.
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Multiple Choice
Q 33Q 33
A personal income statement is prepared
A) on an accrual basis.
B) on a cash basis.
C) based on actual cash flows.
D) Both B and C.
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Multiple Choice
Q 34Q 34
Practical uses of an income statement include
A) determining whether you are spending more than you earn.
B) spotting problem areas of overspending.
C) determining if money is available for saving or investing.
D) knowing where your money is going.
E) all of the above
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Multiple Choice
Q 35Q 35
An expenditure over which you have no control and are obligated to make is a
A) repeating expenditure.
B) fixed expenditure.
C) constant expenditure.
D) long-term expenditure.
E) contractual expenditure.
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Multiple Choice
Q 36Q 36
An expenditure that you can control over time and that you can manage is a(n)
A) variable expenditure.
B) fixed expenditure.
C) constant expenditure.
D) short-term expenditure.
E) adjustable expenditure.
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Multiple Choice
Q 37Q 37
Which of the following might be found on an income statement?
A) Wages and salaries
B) Interest and dividends
C) Income taxes paid
D) Payroll taxes paid
E) All of the above
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Multiple Choice
Q 38Q 38
How would an income statement help you create a financial plan?
A) Spot potential areas of gambling.
B) Determines whether you are earning more than you spend
C) Determines your net worth
D) Allows you to track future income
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Multiple Choice
Q 39Q 39
Which type of expenditure would probably be the hardest for an individual to track?
A) Credit card
B) Cash
C) Checks written
D) Automatic payments
E) Direct deposits
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Multiple Choice
Q 40Q 40
Which of the following would be included on a personal income statement?
A) Your 401(k) balance
B) Buying a flat-screen TV on credit
C) Making a payment to your credit card company
D) All of the above
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Multiple Choice
Q 41Q 41
If your liabilities are greater than the value of your assets you are considered
A) unstable.
B) bankrupt.
C) insolvent.
D) unbalanced.
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Multiple Choice
Q 42Q 42
A statement that records where your money has come from and where it has gone over some period of time is called a(n)
A) income statement.
B) balance sheet.
C) statement of net worth.
D) none of the above
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Multiple Choice
Q 43Q 43
An expenditure over which you have control and are not obligated to make,and which may vary from month to month is called a ________ expenditure.
A) fixed
B) flexible
C) liquid
D) vacillating
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Multiple Choice
Q 44Q 44
An expenditure over which you have no control,are obligated to make,and is generally at a constant level each month is called a ________ expenditure.
A) fixed
B) flexible
C) stationary
D) discretionary
E) none of the above
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Multiple Choice
Q 45Q 45
Suppose that Jacob's assets include a motorcycle worth $12,000 and a checking account with a $3,000 balance,while his liabilities include a credit card balance of $4,000 and a motorcycle loan balance of $7,000.What is his net worth?
A) $4,000
B) $5,000
C) $7,000
D) $12,000
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Multiple Choice
Q 46Q 46
Suppose that Cathy's assets include an automobile worth $10,000 and a checking account with a $5,000 balance,while her liabilities include a student loan balance of $2,000 and a car loan balance of $8,000.What is her net worth?
A) $10,000
B) $8,000
C) $5,000
D) $2,000
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Multiple Choice
Q 47Q 47
What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?
A) Since your liabilities decreased, your net worth would increase by $1,000.
B) Since your assets decreased, your net worth would decrease by $1,000.
C) Your net worth would increase by $500.
D) Your net worth would remain the same.
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Multiple Choice
Q 48Q 48
From her annual salary of $72,000,Kierstan has $5,700 automatically deducted for insurance on an annual basis.Additionally,$9,000 is deducted each year in taxes.When preparing her personal income statement,what figure should Kierstan enter for her income?
A) $66,300
B) $57,300
C) $63,000
D) $72,000
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Multiple Choice
Q 49Q 49
From her annual salary of $60,000,Claudia has $4,500 automatically deducted for insurance on an annual basis.Additionally,$7,500 is deducted each year in taxes.When preparing her personal income statement,what figure should Claudia enter for her income?
A) $55,500
B) $48,000
C) $52,500
D) $60,000
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Multiple Choice
Q 50Q 50
Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance.His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan.What is his net worth?
A) $21,000
B) $15,000
C) $6,000
D) Doug is currently insolvent with $6,000 negative net worth.
E) None of the above statements are correct.
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Multiple Choice
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Q 54Q 54
Using financial ratios helps you quickly compare and analyze the raw data found in your personal income statement and balance sheet.
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Q 56Q 56
An emergency fund,or rainy-day fund,is comprised of liquid assets sufficient to cover 3.5 years of expenditures.
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True False
Q 57Q 57
According to the Keown book,an emergency fund consists of liquid assets that are sufficient to cover ________ of expenditures.
A) 1 to 2 months
B) 3 to 6 months
C) 9 to 12 months
D) 18 to 36 months
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Multiple Choice
Q 58Q 58
The purpose of using financial ratios is to
A) save space on your financial statements.
B) share your financial figures with your advisors.
C) help analyze your raw data to compare how well you are doing.
D) better understand how you are managing your financial resources.
E) both C and D.
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Multiple Choice
Q 59Q 59
A(n)________ is a reserve or rainy-day fund with money set aside to be used for unexpected expenses or when normal income has been disrupted.
A) emergency fund
B) umbrella fund
C) resources fund
D) risk fund
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Multiple Choice
Q 60Q 60
Which questions do financial ratios help you answer?
A) Do I have adequate liquidity to meet emergencies?
B) Do I have the ability to meet my debt obligations?
C) Am I saving as much as I think I am?
D) All of the above
E) A and B
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Multiple Choice
Q 61Q 61
Your ________ is found by dividing monetary assets by current liabilities and is a good measure of liquidity.
A) debt ratio
B) current ratio
C) net worth
D) net cash flows
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Multiple Choice
Q 62Q 62
Your ________ is found by dividing total debt or liabilities by total assets.
A) debt ratio
B) current ratio
C) net worth
D) asset ratio
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Multiple Choice
Q 63Q 63
Which of the following would you calculate if you were concerned about your financial resources with regards to unplanned money emergencies?
A) Liability ratio
B) Debt ratio
C) Long-term debt coverage ratio
D) Current ratio
E) None of the above
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Multiple Choice
Q 64Q 64
Suppose that you wanted to calculate a financial ratio to measure your liquidity.You would most likely use the ________ ratio.
A) debt
B) long-term debt coverage
C) savings
D) current
E) none of the above
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Multiple Choice
Q 65Q 65
Suppose that you were trying to determine how much income was available for future monetary needs as well as for investments.Which of the following ratios would you most likely use?
A) Current ratio
B) Debt ratio
C) Savings ratio
D) Total asset turnover
E) None of the above
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Multiple Choice
Q 66Q 66
The current ratio is a measure of liquidity that reflects
A) how many current assets you own free and clear.
B) your debt payments for the current period.
C) how many times you can pay off your current liabilities by using your liquid assets.
D) the portion of your total liabilities that are considered current liabilities.
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Multiple Choice
Q 67Q 67
Cameron has $17,000 in monetary assets and $4,000 in current liabilities.What is his current ratio?
A) 17,000/4,000
B) )535 times
C) 5 times
D) 13,000/4,000
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Multiple Choice
Q 68Q 68
Kareem has $6000 in monetary assets and $2000 in current liabilities.What is his current ratio?
A) 2,000/6,000
B) )334 times
C) 6,000/2,000
D) 3 times
E) Both C and D are correct.
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Multiple Choice
Q 69Q 69
Alysha has $500 in monetary assets and $5,000 in current liabilities.What is her current ratio?
A) )100 percent
B) )10 times
C) 100 percent
D) 10 times
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Multiple Choice
Q 70Q 70
Henry currently has $1250 in monetary assets and also has $1250 in current liabilities.What is his current ratio?
A) 1 time
B) 100 percent
C) 1 percent
D) 0
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Multiple Choice
Q 71Q 71
If the people below,with their respective current ratios,were to lose their jobs today,which one would have more time and more choices until he or she found another job?
A) Christy has a current ratio of 0.85 times.
B) Rick has a current ratio of 2.5 times.
C) Andrew has a current ratio of 1 time.
D) There is not enough information to answer this question.
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Multiple Choice
Q 72Q 72
Below are several people and their current ratios.If they were to lose their jobs today,which one would probably experience financial stress and pressures the quickest?
A) Elmo has a current ratio of 0.5 times.
B) Andy has a current ratio of 2.1 times.
C) Dee has a current ratio of 1 time.
D) There is not enough information to answer this question.
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Multiple Choice
Q 73Q 73
Sarah has $15,000 in monetary assets,$48,000 in annual living expenses,a $20,000 balance on her car loan,and $60,000 of equity in her house.What is her month's living expenses covered ratio?
A) 1.125 times
B) 3.75 times
C) 3.0 times
D) There is not enough information to answer this question.
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Multiple Choice
Q 74Q 74
Patty has $9,000 in monetary assets,annual living expenses of $36,000,a $12,000 car loan balance,and $45,000 in equity in her house.What is her month's living expenses covered ratio?
A) 1.125 times
B) 3.75 times
C) 3.0 times
D) There is not enough information to answer this question.
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Multiple Choice
Q 75Q 75
Jorge has a debt ratio of 37 percent and Jose has a ratio of 102 percent.They both have the same take-home pay every month.How can we describe their current financial situation?
A) Jorge is currently solvent.
B) Jose is currently insolvent.
C) Jorge probably has more money available to enjoy every month.
D) Jose probably doesn't have much money available to enjoy every month.
E) All of the above
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Multiple Choice
Q 76Q 76
Hector's month's living expenses covered ratio is 0.25 months.He just broke his leg and will not be able to work for six weeks.Without a paycheck for six weeks,what will Hector most likely experience?
A) He may have to liquidate some of his tangible or investment assets to keep current on his monthly bills.
B) He doesn't have to worry because he has plenty of money in his savings accounts.
C) He may have to borrow some money to keep current on his monthly bills
D) There is not enough information to answer this question.
E) Both A and C are realistic possibilities.
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Multiple Choice
Q 77Q 77
Tim and Autumn Davis
Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
-What is their current net worth?
A) $21,000
B) $39,000
C) $18,000
D) $(21,000)
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Multiple Choice
Q 78Q 78
Tim and Autumn Davis
Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
-Assuming that they have no current bills other than those that are listed,what is their current ratio?
A) 0.79 times
B) $5,000/$3,000
C) 2 times
D) Not enough information available
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Multiple Choice
Q 79Q 79
Tim and Autumn Davis
Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
-What is their debt ratio?
A) 123 percent
B) 3 times
C) 1.23 times
D) 0.54 percent
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Multiple Choice
Q 80Q 80
Tim and Autumn Davis
Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
-What is their month's living expenses covered ratio?
A) 2 months
B) 1.23 months
C) 1.75 months
D) Not enough information to answer this question
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Multiple Choice
Q 81Q 81
Hector and Maria Montez
Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month, and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $1,200
Checking account: $800
Credit card balance: $1,000
Car loan balance: $12,000
Car market value: $8,000
Furniture; market value: $2,000
Stocks and bonds: $10,000
-What is their current net worth?
A) $13,000
B) $22,000
C) $9,000
D) $35,000
E) $(13,000)
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Multiple Choice
Q 82Q 82
Hector and Maria Montez
Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month, and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $1,200
Checking account: $800
Credit card balance: $1,000
Car loan balance: $12,000
Car market value: $8,000
Furniture; market value: $2,000
Stocks and bonds: $10,000
-Assuming that they have no current bills other than those that are listed,what is their current ratio?
A) 0.59 times
B) 2000/1000
C) 2 times
D) Both B and C are correct.
E) Not enough information available
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Multiple Choice
Q 83Q 83
Hector and Maria Montez
Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month, and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $1,200
Checking account: $800
Credit card balance: $1,000
Car loan balance: $12,000
Car market value: $8,000
Furniture; market value: $2,000
Stocks and bonds: $10,000
-What is their debt ratio?
A) 169 percent
B) 1.69 times
C) 0.59 percent
D) 0.59 times
E) 2 times
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Multiple Choice
Q 84Q 84
Hector and Maria Montez
Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month, and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $1,200
Checking account: $800
Credit card balance: $1,000
Car loan balance: $12,000
Car market value: $8,000
Furniture; market value: $2,000
Stocks and bonds: $10,000
-What is their month's living expenses covered ratio?
A) 2 months
B) 2.44 months
C) 1.69 months
D) 0.5 months
E) Not enough information to answer this question
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Multiple Choice
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Essay
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Essay
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Essay
Q 88Q 88
A financial ratio by itself is of little value.To what can you compare your financial ratios to make them valuable financial planning tools?
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Essay
Q 89Q 89
According to the Keown book,Mint and Level Money are two of the best smartphone apps for tracking your spending and setting up a budget.
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True False
Q 90Q 90
Which of the following is the best type of record-keeping system to use in maintaining financial records?
A) Manual method with pencil and notebook
B) Computer software
C) Apps
D) All of the above
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Multiple Choice
Q 91Q 91
According the Keown book,which Web-based personal financial planning website is known as "the best free way to manage your money?"
A) Mint.com
B) Levelmoney.com
C) YahooFinance.com
D) WSJ.com
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Multiple Choice
Q 92Q 92
According to the Keown book,the most popular personal financial management program for the PC is
A) Intuit's Quicken.
B) MoneyGuidePro.
C) Financial Peace.
D) Crown Financial.
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Multiple Choice
Q 93Q 93
A strong record-keeping system allows you to
A) track expenses.
B) know exactly how much you're spending.
C) know where you're spending your financial resources.
D) all of the above.
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Multiple Choice
Q 94Q 94
According to the Keown book,what are the three primary reasons for maintaining financial records?
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Essay
Q 95Q 95
An estimate of your anticipated after-tax income available for living expenses is commonly called take-home pay.
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True False
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True False
Q 97Q 97
Having negative net income every once in a while is not such a bad thing as long as you have planned for it.
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True False
Q 98Q 98
From the Keown book,you have learned that a budget
A) can be simple or sophisticated.
B) is a process of setting spending goals for the upcoming month or year.
C) is a plan for controlling cash inflows and outflows.
D) includes both actual and estimated expenses.
E) all of the above.
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Multiple Choice
Q 99Q 99
Which of the following financial documents would you to use to create a financial plan?
A) Balance sheet
B) Income statement
C) Budget
D) Cash budget
E) All of the above
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Multiple Choice
Q 100Q 100
Suppose that you have been operating an online marketing business out of your home,and the business has recently expanded beyond belief.Since you have neglected your personal finances for some time,what would you do as a first step?
A) Separate your personal finances from the business finances.
B) Combine your personal finances and business finances to save time.
C) Rent a separate office for your business activities.
D) Purchase a software program to handle both your business and personal finance at the same time.
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Multiple Choice
Q 101Q 101
A plan for controlling and forecasting your cash inflows and cash outflows is called a(n)
A) income statement.
B) balance sheet.
C) cash budget.
D) statement of changes in financial position.
E) none of the above.
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Multiple Choice
Q 102Q 102
Bradley went shopping today and used his American Express credit card to buy a new pullover sweater.He used his bank debit card to pay for a video game and bought some snack food with cash.Which of these purchases are difficult to track and monitor on his budget?
A) The pullover sweater is difficult to track because it costs more than what he budgeted for clothing this month.
B) The video games are difficult to track because he did not add a budget category for electronics.
C) The snacks are difficult to track because cash transactions don't leave a paper trail.
D) Both A and B
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Multiple Choice
Q 103Q 103
George and Betty
George and Betty, a middle-aged couple, have watched their savings account dwindle over the years. They both make good incomes and can't understand why they aren't saving more each month. Below is their financial information to complete an income statement.
Gross monthly income: $8,000
Income taxes withheld monthly: $2,300
Monthly interest income from investments: $100
Monthly insurance payments: $700
Monthly housing expenses: $4,500
Monthly food expenses: $800
Miscellaneous expenses: $400
-What is George and Betty's net income?
A) $1,700
B) $(600)
C) $(500)
D) $1600
E) Not enough information available to answer question
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Multiple Choice
Q 104Q 104
George and Betty
George and Betty, a middle-aged couple, have watched their savings account dwindle over the years. They both make good incomes and can't understand why they aren't saving more each month. Below is their financial information to complete an income statement.
Gross monthly income: $8,000
Income taxes withheld monthly: $2,300
Monthly interest income from investments: $100
Monthly insurance payments: $700
Monthly housing expenses: $4,500
Monthly food expenses: $800
Miscellaneous expenses: $400
-What is their current savings ratio?
A) 10.3 percent
B) negative 10.3 percent
C) zero
D) None of the above
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Multiple Choice
Q 105Q 105
George and Betty
George and Betty, a middle-aged couple, have watched their savings account dwindle over the years. They both make good incomes and can't understand why they aren't saving more each month. Below is their financial information to complete an income statement.
Gross monthly income: $8,000
Income taxes withheld monthly: $2,300
Monthly interest income from investments: $100
Monthly insurance payments: $700
Monthly housing expenses: $4,500
Monthly food expenses: $800
Miscellaneous expenses: $400
-George and Betty ask you for financial advice.What would you tell them to do?
A) They should hire a Certified Financial Planner to assist them.
B) Nothing. With their income they are in good shape financially.
C) They need to live within their means.
D) Both A and C would be good advice for them.
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Multiple Choice
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Essay
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Essay
Q 108Q 108
What are some benefits of using a mobile app coupled with a Web-based personal financial planning website? Which two websites/apps are highly recommended by the author?
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Essay
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True False
Q 110Q 110
As long as a financial planner is certified you need not worry about his ability to provide you with the correct financial plan for your situation.
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True False
Q 111Q 111
________ planners charge a fee that is reduced by the amount of the commissions they earn.
A) Fee-only
B) Fee-and-commission
C) Fee-offset
D) Commission-based
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Multiple Choice
Q 112Q 112
Which of the following is a relevant question to ask a financial planner?
A) What are your credentials and professional designations?
B) Would you provide us with references?
C) Would you show us a similar financial plan you have done for someone else?
D) Will you provide us with a written estimate of your services and their cost?
E) All of the above
Free
Multiple Choice
Q 113Q 113
Under what conditions should people hire a professional financial planner?
A) When they need someone to improve or validate the plan they prepared themselves
B) When they start receiving late payment penalties from their creditors
C) When it is apparent their financial planning skills are limited
D) When they run into complex tax or legal issues
E) All of the above
Free
Multiple Choice
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Essay
Free
Essay
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Essay
Q 117Q 117
The experts say that,stereotypically,a fee-only financial planner is a better option than one who earns commissions on what he or she sells you.Why is this sometimes true?
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Essay