This quiz works best with JavaScript enabled. Home > Finance > Personal Finance > Personal Financial Planning > Personal Financial Planning – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Financial Planning Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Using surveys, questionnaires and interviews to gather quantitative and qualitative information from the individual. A) Data Gathering. B) Plan Monitoring. C) Objective Setting. D) Financial Plan Recommendation. Show Answer Correct Answer: A) Data Gathering. 2. Your net worth is your ..... A) Total assets-total liabilities. B) Total liabilities-total assets. C) Total liabilities + total assets. D) None of above. Show Answer Correct Answer: A) Total assets-total liabilities. 3. Personal financial planning requires that you make choices and evaluate risks. If you decide to wait until next year to buy a car, one risk that you may face is A) The engine is old. B) Personal risk. C) Inflation rate risk. D) The car color choice is unavailable. Show Answer Correct Answer: C) Inflation rate risk. 4. You will have a positive net worth if your ..... A) Total assets less than total liabilities. B) Total liabilities more than total assets. C) Total assets more than total liabilities. D) None of above. Show Answer Correct Answer: C) Total assets more than total liabilities. 5. The first step in the financial planning process is to A) Develop your financial goals. B) Determine your current financial situation. C) Determine your needs and wants. D) Count your money. Show Answer Correct Answer: B) Determine your current financial situation. 6. Arranging to spend, save, and invest money. A) Interest. B) Values. C) Personal Financial Planning. D) Goals. Show Answer Correct Answer: C) Personal Financial Planning. 7. Martina and Anton are attempting to qualify for total mortgage financing of $ 1486, heating costs of $ 68, and they have a car loan payment of $ 346. What minimum gross monthly income will they need to qualify for both GDS ratio of 32 percent and TDS ratio of 40 percent? A) $ 5938. B) $ 4750. C) $ 4644. D) $ 4856. Show Answer Correct Answer: D) $ 4856. 8. The day-to-day financial activities necessary to get the most from your money. A) Budgeting. B) Money management. C) Personal property inventory. D) Personal financial planning. Show Answer Correct Answer: B) Money management. 9. Proper financial planning can satisfy our physiological need and contribute to our physical well-being. Which one of the following is physiological need? A) Food. B) Self-fulfillment. C) Relationship with others. D) Security. Show Answer Correct Answer: A) Food. 10. Which is the state of retirement? A) Expenditure is zero, income continues. B) Expenditure continues, income is zero. C) Expenditure continues, income continues. D) None of above. Show Answer Correct Answer: B) Expenditure continues, income is zero. 11. Destiny has assets of $ 5, 000 and owes $ 7, 500. A) She has a high debt ratio and is not in a good financial position. B) She has a low debt ratio and is in a good financial position. C) She is solvent. D) She need to file for bankruptcy. Show Answer Correct Answer: A) She has a high debt ratio and is not in a good financial position. 12. Money or other items of value that a person owns A) Debts. B) Assets. C) Liabilities. D) Expenses. Show Answer Correct Answer: B) Assets. 13. Which of the following statements about bonds and stocks is not correct? A) Bondholders have a risk of not being able to sell the bonds in the secondary market. B) Shareholders are actually owners of the company. C) Bondholders are the creditors of the firm. D) The shareholders have the priority to get back the capital when the company is liquidated. Show Answer Correct Answer: D) The shareholders have the priority to get back the capital when the company is liquidated. 14. The original amount of money on deposit. A) Capital. B) Premium. C) Principal. D) Returns. Show Answer Correct Answer: C) Principal. 15. The things you want to accomplish. A) Mission. B) Target. C) Strategy. D) Goals. Show Answer Correct Answer: D) Goals. 16. Arranging to spend, save, and invest money to live comfortably, have financial security and achieve goals. A) Personal Financial Planning. B) Time value of money. C) Budgeting. D) Liquidity. Show Answer Correct Answer: A) Personal Financial Planning. 17. Items that are relatively rare that people collect in hopes that they will increase in value A) Assets. B) Luxury goods. C) Collectibles. D) Lottery ticket. Show Answer Correct Answer: C) Collectibles. 18. If Jo Ann had $ 4000 in liquid assets and $ 1000 in current liabilities, she would have a current ratio of A) 4000. B) 0.25. C) 4.0. D) 1000. Show Answer Correct Answer: C) 4.0. 19. What you ..... include all types of loans, whether to your bank, family, or friends, as well as credit card debt and payments that are due, such as house rental and utility bills. A) Owe (liabilities). B) Own (liabilities). C) Own (assets). D) Owe (assets). Show Answer Correct Answer: A) Owe (liabilities). 20. The ways in which people make, distribute and use their goods and services is called the A) Economy. B) Means of exchange. C) Short-term goals. D) Opportunity cost. Show Answer Correct Answer: A) Economy. 21. A payment method used to electronically deposit your paycheck into your bank account A) Direct deposit. B) Pay yourself first. C) Automatic check cashing. D) None of above. Show Answer Correct Answer: A) Direct deposit. 22. Which of the following are the risks of bonds? (1) Interest rate risk(2) Coupon rate is not fixed(3) Reinvestment risk A) And (2) only. B) And (3) only. C) And (3) only. D) , (2) and (3). Show Answer Correct Answer: B) And (3) only. 23. Anticipated expenses that are the same each month and usually require payment around the same time each month A) Assets. B) Variable expenses. C) Liabilities. D) Fixed expenses. Show Answer Correct Answer: D) Fixed expenses. 24. The ability to easily convert financial assets into cash A) Solvency. B) Liquidity. C) Accessibility. D) None of the above. Show Answer Correct Answer: B) Liquidity. 25. Accumulations of assets by an individual such as money and possessions A) Personal property inventory. B) Solvent. C) Colletions. D) Personal wealth. Show Answer Correct Answer: D) Personal wealth. 26. Robert feels his personal finance is not so healthy in terms of managing debt. He has a credit card liability, a car loan, and a $ 300 000 mortgage liability. Robert possesses a car worth and a house worth . What is Robert's debt-to-asset ratio? A) 77.3 percent. B) 83.3 percent. C) Insufficient information to calculate. D) 80.5 percent. Show Answer Correct Answer: D) 80.5 percent. 27. If you have total assets of $ 10 000 and your net worth is $ 4000, how much liabilities do you have? A) $ 4000. B) $ 14 000. C) $ 10 000. D) $ 6000. Show Answer Correct Answer: D) $ 6000. 28. The three standard deductions from a person's pay include, federal taxes, state taxes, and ..... A) Social security. B) Sales taxes. C) Retirement. D) Insurance. Show Answer Correct Answer: A) Social security. 29. What is Financial Freedom? A) A status in which there is enough wealth to pursue the kind of life that desire. B) A status in which a person leave their job to seek freedom. C) A emotional state of a person that put less effort on financial activity. D) None of above. Show Answer Correct Answer: A) A status in which there is enough wealth to pursue the kind of life that desire. 30. Money spent on different items; items that are necessary for maintaining a household, and some are chosen. A) Expenses. B) Income. C) Cash flow. D) Collateral. Show Answer Correct Answer: A) Expenses. ← PreviousNext →Related QuizzesPersonal Finance QuizzesFinance QuizzesPersonal Financial Planning Quiz 1Personal Financial Planning Quiz 2Personal Financial Planning Quiz 3Personal Financial Planning Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books