Question 1

Which of the following statements is not true regarding education and financial position?
A)Your financial position is highly influenced by the amount of education you pursue
B)Higher education always guarantees a higher income
C)The more education you have,the higher your earnings will likely be
D)Before you choose a major,you should consider your skills,interests,and the career paths that will be available to you

Accepted Answer

While higher education often leads to higher earning potential, it does not always guarantee a higher income. The job market, industry, and location can also impact an individual's financial position.

Question 2

Which of the following would not help protect you from unethical or incompetent advice from a financial adviser?
A)Educate yourself on various financial products
B)Ask questions of other clients
C)Rely on the adviser as to when to buy and sell
D)Know your risk tolerance

Accepted Answer

Relying solely on the adviser to make buying and selling decisions without understanding the rationale behind it can leave you vulnerable to unethical or incompetent advice. It is important to educate yourself, ask questions, know your risk tolerance, and be an active participant in your own financial decision-making process.

Question 3

Which of the following Web sites should you question the accuracy of the information provided?
A)Current tax rates and rules used for tax planning on the IRS Web site
B)Investment performance on the SEC Web site
C)New retirement plan rules used for retirement planning on a major bank's Web site
D)A list of stocks you should buy that were mentioned on a free chat room

Accepted Answer

A list of stocks recommended in a free chat room cannot be verified as accurate, so it is best to question the information provided on this site. The other options are reputable sources and are more likely to provide accurate information.

Question 4

After your financial plan is developed it should be
A)locked in a safe for keeping so it isn't stolen.
B)reviewed every five years.
C)monitored and updated annually.
D)sold to others.

Accepted Answer

A financial plan is not a one-time event. It should be regularly monitored and updated, taking into account changes in income, expenses, assets, debts, and life goals. This will ensure that the plan remains relevant and effective in achieving desired outcomes. Therefore, option C is the correct choice. The other options are irrelevant or inappropriate.

Question 5

Match the goals with the following:
1.short-term goal (a)To retire in 25 years
2.intermediate goal (b)To purchase a home in three years
3.long-term goal (c)To save enough money for books and tuition for next term

Accepted Answer

The answer of Match the goals with the following:
1.short-term goal...

Question 6

Put the following six steps in order for a financial plan:
(a)plans to achieve the goals
(b)financial goals
(c)revising the plan
(d)current financial situation
(e)evaluating the plan
(f)selecting and implementing the best plan

Accepted Answer

The answer of Put the following six steps in order...

Question 7

Which of the following is not a step in developing a financial plan?
A)Establish your financial goals
B)Consider your current financial position
C)Identify and evaluate alternative plans that could achieve your goals
D)Put your plan away for six months to a year and then review it for accuracy

Accepted Answer

Putting your plan away for six months to a year and then reviewing it for accuracy is not a step in developing a financial plan. It is important to continuously monitor and adjust your financial plan as needed.

Question 8

Which of the following could save a smaller proportion of their earnings to achieve the same level of wealth?
A)Social worker
B)School teacher
C)Medical doctor
D)All would save the same percentage of earnings to reach the same level of wealth

Accepted Answer

A medical doctor typically earns a higher income compared to a social worker or school teacher, allowing them to save a smaller proportion of their earnings to achieve the same level of wealth.

Question 9

Your financial plan is usually strongly influenced by
A)your parents.
B)your tolerance for risk and your self-discipline.
C)your peers.
D)your age.

Accepted Answer

Your financial plan should be influenced by your tolerance for risk and self-discipline as well as your financial goals and priorities. While age can be a factor in determining your financial plan, it is not the only or most important factor. Parents and peers may offer advice or guidance, but ultimately it is up to you to make informed decisions about your finances.

Quiz 1: Overview of a Financial Plan

Which of the following statements is not true regarding education and financial position?

Which of the following would not help protect you from unethical or incompetent advice from a financial adviser?

Which of the following Web sites should you question the accuracy of the information provided?

After your financial plan is developed it should be

Match the goals with the following: 1.short-term goal (a)To retire in 25 years 2.intermediate goal (b)To purchase a home in three years 3.long-term goal (c)To save enough money for books and tuition for next term

Put the following six steps in order for a financial plan: (a)plans to achieve the goals (b)financial goals (c)revising the plan (d)current financial situation (e)evaluating the plan (f)selecting and implementing the best plan

Which of the following is not a step in developing a financial plan?

Which of the following could save a smaller proportion of their earnings to achieve the same level of wealth?

Your financial plan is usually strongly influenced by