This quiz works best with JavaScript enabled. Home > Finance > Personal Finance > Personal Financial Planning > Personal Financial Planning – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Financial Planning Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the future value of $ 200 deposited today at eight percent interest compounded annually for three years? A) $ 250. B) $ 252. C) $ 248. D) $ 249. Show Answer Correct Answer: B) $ 252. 2. Cash and items that can be quickly converted to cash. A) Solvent. B) Insolvent. C) Liquidity. D) Assets. Show Answer Correct Answer: C) Liquidity. 3. How long will it take Ivy's money to triple in value at 12 percent compounded quarterly? A) 9.5 years. B) 9.7 years. C) Not enough information. D) 9.3 years. Show Answer Correct Answer: D) 9.3 years. 4. Guides monetary policy A) Federal Reserve (FED). B) Securities and Exchange Commission (SEC). C) Federal Deposit Insurance Corporation (FDIC). D) National Credit Union Administration. Show Answer Correct Answer: A) Federal Reserve (FED). 5. This month Joshua has $ 2000 income from his job and $ 100 interest income. His expenses are rent $ 500, food and entertainment $ 400, car expenses $ 600. He has $ 40 000 held in bonds and a car loan of . What is his net worth? A) $ 600. B) $ 500. C) -$ 9400. D) $ 30 600. Show Answer Correct Answer: A) $ 600. 6. Generally accepted finance principles would support which of the following statements A) 'High return generally equals high risk'. B) 'High return generally equals low risk'. C) 'High risk is generally inversely related to high return'. D) D. 'Low return generally equals high risk'. Show Answer Correct Answer: A) 'High return generally equals high risk'. 7. The ability to easily convert financial assets into cash without loss of value. A) Annuity. B) Liquidity. C) Time value of money. D) Interest. Show Answer Correct Answer: B) Liquidity. 8. Anticipated expenses that may vary in amount each month A) Unanticipated expenses. B) Fixed expenses. C) Variable expenses. D) Anticipated expenses. Show Answer Correct Answer: C) Variable expenses. 9. Is it possible for someone with a positive net worth to get into financial problems? Financial difficulties can occur when your assets are not ..... A) Liquid. B) Transfer. C) Freeze. D) None of above. Show Answer Correct Answer: A) Liquid. 10. Nazar owns more than he owes. He is considered ..... A) Insolvent. B) Solvent. C) Fixed. D) Liquid. Show Answer Correct Answer: B) Solvent. 11. Financial products will be proposed. At this point, the individual can comment on the solutions proposed. A) Objective Setting. B) Plan Monitoring. C) Financial Plan Recommendation. D) Data Gathering. Show Answer Correct Answer: C) Financial Plan Recommendation. 12. What should be the first step in the home-buying process? A) Compare the costs of buying versus renting. B) Determine how much you can afford to pay monthly for a mortgage. C) Interview three realtors. D) Determine the price range for houses in your target area. Show Answer Correct Answer: B) Determine how much you can afford to pay monthly for a mortgage. 13. The values you want to accomplish A) Services. B) Goals. C) Money moves. D) Goods. Show Answer Correct Answer: B) Goals. 14. Money received for work or other sources such as interest earned, child support, alimony, or dividends from stocks. A) Income. B) Net pay. C) Expenses. D) Gross pay. Show Answer Correct Answer: A) Income. 15. Debts, any outstanding bills or loans that must be repaid A) Income. B) Expenses. C) Assets. D) Liabilities. Show Answer Correct Answer: D) Liabilities. 16. Saving for a vacation next Summer or paying off small debts by the end of the year are examples of A) Personal financial planning. B) Long-term goals. C) Short-term goals. D) Opportunity costs. Show Answer Correct Answer: C) Short-term goals. 17. Having funds to buy things that require money above what is normally allowed by a budget within a year. A) Long-term financial goal. B) Intermediate financial goal. C) Short-term financial goal. D) Smart goal. Show Answer Correct Answer: C) Short-term financial goal. 18. The 3rd step in the financial planning process is A) Identify alternative courses of action. B) Evaluate your alternatives. C) Develop your financial Goals. D) Create a financial plan of action. Show Answer Correct Answer: A) Identify alternative courses of action. 19. Opportunity cost represents A) The non-financial cost of any opportunity. B) What you give up as a result of making a decision. C) The financial cost of any opportunity. D) Short-versus long-term financial decisions. Show Answer Correct Answer: B) What you give up as a result of making a decision. 20. The present value of a single deposit is also known is A) What your deposit will be worth in the future based upon an interest rate. B) The amount of money you need to deposit now in order to have a certain amount in the future. C) Bread. D) The value your deposit will be worth if you deposit a series of regular, equal deposits. Show Answer Correct Answer: B) The amount of money you need to deposit now in order to have a certain amount in the future. 21. Saving money for less than 2 months is A) Impossible. B) Long term goal. C) A short term goal. D) Unrealistic. Show Answer Correct Answer: C) A short term goal. 22. What is lifestyle inflation? A) Income increase, spending decrease. B) Income decrease, spending increase. C) Income increase, spending increase. D) None of above. Show Answer Correct Answer: C) Income increase, spending increase. 23. This month Jill received $ 1000 income from her job and $ 200 in stock dividends. Her expenses were rent and utilities of $ 300 and $ 300 on groceries and $ 200 on clothing. Which of the following is true? A) Jill has net income of $ 400. B) Jill has a net cash flow of $ 200. C) Jill has a net cash flow of $ 400. D) Jill has net expenses of $ 400. Show Answer Correct Answer: C) Jill has a net cash flow of $ 400. 24. Quantifying monetary objectives with definite time frames. Prioritizing objectives. A) Objective Setting. B) Financial Plan Recommendation. C) Plan Monitoring. D) Data Analysis. Show Answer Correct Answer: A) Objective Setting. 25. How many months of expenses should you have saved in case of emergencies. A) 6. B) 12. C) 18. D) 24. Show Answer Correct Answer: A) 6. 26. What is the term for the interest rate financial institutions quote? A) Effective. B) Real. C) Annual. D) Nominal. Show Answer Correct Answer: D) Nominal. 27. The increase of an amount of money due to earned interest or dividends. A) Time value of money. B) Interest. C) Liquidity. D) Getting paper. Show Answer Correct Answer: A) Time value of money. 28. Income that is consistent and is typically received around the same time each month. A) Anticipated expense. B) Unanticipated income. C) Unanticipated expense. D) Anticipated income. Show Answer Correct Answer: D) Anticipated income. 29. A person who purchases and uses goods or services. A) Bank. B) Consumer. C) Lender. D) Shopper. Show Answer Correct Answer: B) Consumer. 30. Stated below are the factors causing the NESTLE stock price to move up and down, except A) Numbers of citizens playing Facebook in Malaysia. B) Performance of the company's in the market. C) Rumour of the company being circulated. D) Future plans announced by the company's leader. Show Answer Correct Answer: A) Numbers of citizens playing Facebook in Malaysia. ← PreviousNext →Related QuizzesPersonal Finance QuizzesFinance QuizzesPersonal Financial Planning Quiz 1Personal Financial Planning Quiz 2Personal Financial Planning Quiz 4Personal Financial Planning Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books