Reference no: EM13915976
1. When a person faces a trade-off and must give up something by making a choice, this is referred to as
- taking out a loan.
- opportunity cost.
- the evaluation of alternatives.
- a decision-making process.
- a dilemma.
2. _____ is the ability to convert assets and financial resources into usable cash relatively easily.
- Bankruptcy
- Solvency
- Investing
- Opportunity cost
- Liquidity
3. The Federal Reserve has the responsibility to
- monitor illegal business activities.
- approve spending by Congress.
- set federal income tax rates.
- maintain an adequate supply of money.
- maintain a balanced budget for the federal government.
4. The _____ refers to stages that an individual goes through based on age, financial needs, and family situation.
- financial planning process
- financial cycle
- adult life cycle
- personal economic cycle
- tax planning process
5. A family spends $40,000 on living expenses. With an annual inflation rate of 3%, they can expect to spend approximately _____ in 4 years.
- $45,000
- $41,200
- $42,000
- $43,700
- $46,000
6. Higher employment levels can be attributed to lower consumer prices.
- reduced employment levels.
- lower interest rates.
- higher employment levels.
- increased consumer spending.
7. The time value of money refers to
- personal opportunity costs such as time lost on an activity.
- financial decisions that require borrowing funds from a financial institution.
- increases in an amount of money due to earned interest.
- the impact of inflation upon the dollar.
- changing demographic trends in our society.
8. If a person wants to determine the current value of a desired amount for the future, the following computation would be used.
- Simple interest
- Present value of a single amount
- Future value of a series of deposits
- Future value of a single amount
- Present value of a series of deposits
9. Which goal below would be the easiest to implement and measure in terms of accomplishment?
- "Reduce our debt payments."
- Save $100 a month to create a $4,000 emergency fund."
- "Save funds for an annual vacation."
- "Invest $2,000 a year for retirement."
10. If John Smith is making plans to make holiday purchases at the end of the year, he is setting a(n) _____ goal.
- intermediate
- long-term
- short-term
- intangible
- durable
11. In order to evaluate present value scenarios, _____ is/are needed.
- multiplication
- compounding
- simple interest calculations
- discounting
- payment information
12. A commitment to a profession that requires continued training and offers a clear path for occupational growth is a(n)
- apprenticeship.
- internship
- employment.
- cooperative employment experience.
- career.
13. Personal financial statements would include
- budget and credit card statements.
- income tax forms and a cash flow statement.
- a checkbook and a budget.
- a balance sheet and a cash flow statement.
- a bank statement and a savings passbook.
14. A _____ résumé would best be used by an employee who has worked in many fields and has a variety of skills in a variety of work-related categories.
- targeted
- goal-oriented
- chronological
- functional
- career change
15. A _____ résumé is designed to obtain a specific job.
- functional
- chronological
- goal-oriented
- targeted
- data
16. A lack of _____ refers to a lack of willingness to accept a variety of employment positions and is a common career planning mistake.
- common sense
- flexibility
- training
- communication
- perseverance
17. A family with $66,000 in assets and $52,000 of liabilities would have a net worth of
- $66,000.
- $52,000.
- $118,000.
- $14,000.
- $41,000.
18. Personal balance sheets can be used to analyze
- future income and expenses.
- the net worth of an organization.
- the cash flow of an individual or a family.
- debt payment activities.
- what an individual or family owes and owns.
19. Solvency can be assessed through the analysis of the following financial document.
- Cash flow statement
- Debt consolidation statement
- Personal income statement
- Credit report
- The balance sheet
20. If a person has a payment that does not vary from month to month, then this type of payment is _____.
- semivariable
- current
- variable
- fixed
- budgeted