Reference no: EM133114521
1. Which of the following is not a major type of life insurance? Multiple Choice
a. Term
b. Universal life
c. Variable life
d. Variable term life
e. Whole life
2. Which of the following is not a common risk management approach? Multiple Choice
a. Retain risk.
b. All of these are common risk management approached.
c. Share risk.
d. Avoid risk.
e. Reduce risk.
3. Tangible assets that the household owns are: Multiple Choice
a. Real assets
b. Human assets
c. Financial assets
d. None of the choices are correct.
e. All of the choices are correct.
4. Why is there a need for the financial plan to integrate all financial actions? Multiple Choice
a. All of the choices are correct.
b. To satisfy certain regulation that financial planners must follow.
c. Due to the limited resources households have.
d. None of the choices are correct.
e. Due to the possibility that the justification for some actions may be forgotten.
5. Which of the following is not a way through which to make integrated financial decisions? Multiple Choice
a. Total portfolio management
b. All of these are ways through which to make integrated financial decisions.
c. Capital needs risk management
d. Capital needs analysis incorporating risk
e. Simple capital needs analysis
6.What is the goal of personal financial planning? Multiple Choice
a. To provide the highest standard of living possible for household "member-owners" over their life cycle.
b. To maximize the revenue of household "member-owners" over their life cycle.
c. To minimize the expenses of household "member-owners" over their life cycle.
d. To minimize the degree of risk faced by household "member-owners" over their life cycle.
e. All of the choices are correct.
7. Which of the following is not a technique through which to reduce taxes? Multiple Choice
a. Transfers.
b. Conversions.
c. All of these are techniques though which to reduce taxes.
d. Deferrals.
e. Eliminations
8. Which of the following is an advantage associated with being more conservative in one's simple capital needs projections? Multiple Choice
a. You have no benchmark to determine how much to alter each calculation and errors associated with this approach will not change one's lifestyle
b. It is easy to understand and to execute
c. Errors associated with this approach will not change one's lifestyle and it is easy to understand and to execute
d. Errors associated with this approach will not change one's lifestyle
e. You have no benchmark to determine how much to alter each calculation
9. For which of the following operating segments of the financial plan is the cash relationship characterized exclusively as an inflow? Multiple Choice
a. Revenues and capital expenditures (nonfinancial investments).
b. Revenues.
c. Risk management
d. Capital expenditures (nonfinancial investments) and risk management.
e. Capital expenditures (nonfinancial investments).
10. The minimum coverage generally associated with umbrella coverage is: Multiple Choice
a. $500,000
b. $250,000
c. There is no minimum coverage.
d. $750,000
e. $1 million.