Reference no: EM133092195

1. Which of the following best describes integration in the context of personal financial planning? Multiple Choice

a. Incorporating all members of the household into investment decision making.
b. Thoroughly diversifying investments geographically.
c. Updating the personal financial plan on a periodic basis.
d. None of the choices are correct.
e. Evaluating costs and benefits over time to find the best path to our goals.

2. What is the household resource problem? Multiple Choice

a. What the household should do to generate resources and what the household should do to spend resources.
b. What the household should do to generate resources.
c. What the household should do to spend resources.
d. What the household should do to spend resources and what the household should do with its current and future cash flow.
e. What the household should do with its current and future cash flow.

3. SWOT analysis can: Multiple Choice

a. Form a realistic appraisal for the planning future.
b. All of the choices are correct.
c. Lead to changes in projections or practices.
d. None of the choices are correct.
e. Uncover new information.

4. By which of the following steps in the financial planning process do we ask "Have you analyzed all areas that you intended to?"

Multiple Choice

a. Compiling and analyzing the data.
b. Gathering the data and identifying goals.
c. None of the choices are correct.
d. All of the choices are correct.
e. Establishing the scope of the activity.

5. For which of the following operating segments of the financial plan is the cash relationship characterized as an outflow? Multiple Choice

a. Revenues and living costs.
b. Retirement planning.
c. Revenues.
d. Living costs.
e. Living costs and retirement planning.

6. Which of the following is not an advantage associated with a financial plan? Multiple Choice

a. It provides a numerical base for adjustments as goals and resources change in the future.
b. It presents a document to refer back to so that you can compare actual with projected results and refresh your memory as thoughts of the original steps fade.
c. It compels you to order your priorities and provide a specific financial solution using integrative techniques.
d. All of these are advantages.
e. It imposes overall structure on the process through specific steps that should be taken.

7. Which of the following is not a key to a successful financial plan? Multiple Choice

a. Steps have been taken to help with any human shortcomings and nonfinancial goals are given.
b. None of these are key to a successful financial plan.
c. Before completing the plan, a review process has been undertaken that confirms that the financial figures and recommendations make sense and are attainable, given the personalities of the individuals.
d. A specific statement is made indicating whether the goals are doable and the current household course is financially consistent with those goals.
e. All of these are key to a successful financial plan.

8. The financial plan should be written: Multiple Choice

a. Both before and after the behavioral review.
b. During the beginning of the behavioral review.
c. After the behavioral review.
d. None of the choices are correct.
e. Before the behavioral review.

9. Which area of personal financial planning is affected by the internal environment variable "obligations in relation to assets and cash flow"? Multiple Choice

a. Cash flow.
b. Debt.
c. Tax planning.
d. Risk management.
e. None of the choices are correct.

10. Why is there a need for the financial plan to integrate all financial actions? Multiple Choice

a. Due to the limited resources households have.
b. Due to the possibility that the justification for some actions may be forgotten.
c. All of the choices are correct.
d. To satisfy certain regulation that financial planners must follow.
e. None of the choices are correct.