This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Financial Planning > Personal Financial Planning – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Financial Planning Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Ben's salary is $ 3000 per month, taxes are $ 500, fixed expenses are $ 1500 and savings are $ 500. His disposable income is A) $ 1500. B) $ 3000. C) $ 2500. D) $ 500. Show Answer Correct Answer: C) $ 2500. 2. What is the first step in building a financial portfolio for yoourself A) Estimate your income and expenses. B) Determine your current financial situation. C) Decide what you want your job to be in the future. D) Create a financial excel sheet. Show Answer Correct Answer: B) Determine your current financial situation. 3. Expenses that are consistent and require payment around the same time each month A) Anticipated income. B) Unanticipated income. C) Anticipated expenses. D) Unanticipated expenses. Show Answer Correct Answer: C) Anticipated expenses. 4. Hazel needs to plan the mortgage amount she can afford. How much would she need to pay at the end of each month on a mortgage of $ 200 000 at six percent interest, calculated semi-annually and amortized over 30 years? A) $ 555. B) $ 1211. C) $ 1199. D) $ 1190. Show Answer Correct Answer: D) $ 1190. 5. Expenses that are not paid every month and cannot always be planned. A) Anticipated expenses. B) Unanticipated expenses. C) Disposable expenses. D) Discretionary expenses. Show Answer Correct Answer: B) Unanticipated expenses. 6. Periodic review of the financial plan to evaluate changing market conditions (i.e. economic conditions, taxes, interest rates etc.) A) Data Gathering. B) Financial Plan Recommendation. C) Plan Monitoring. D) Objective Setting. Show Answer Correct Answer: C) Plan Monitoring. 7. Which of the following is the negative impacts of financial crisis? A) Employee revenues affected. B) Price level of goods and services increase. C) Value of money decline. D) All of the answer above. Show Answer Correct Answer: D) All of the answer above. 8. Jeff has a $ 1000 salary and $ 100 dividend income this month. This month Jeff has rent and utilities of $ 600 and he spent $ 200 on groceries and $ 100 on clothing. What is his net cash flow this month? A) $ 500. B) $ 100. C) $ 200. D) $ 1100. Show Answer Correct Answer: C) $ 200. 9. The lowest level of business activity occurs during which of the following phases in the business cycle? A) Boom or expansion phase. B) Recession phase. C) Recovery phase. D) Contraction phase. Show Answer Correct Answer: B) Recession phase. 10. A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities A) Balance Sheet. B) Cash Flow Statement. C) Budget. D) Financial plan. Show Answer Correct Answer: D) Financial plan. 11. Having funds to buy things that require money above what is normally allowed by a budget. Short-term financial goals are usually accomplished within a year. A) Short-term goal. B) Long-term goal. C) Intermediate goal. D) Mid-term goal. Show Answer Correct Answer: A) Short-term goal. 12. A list of all of one's personal property A) Personal property inventory. B) Bank statement. C) Budget. D) Income and expense inventory. Show Answer Correct Answer: A) Personal property inventory. 13. Lee has assets valued at $ 5, 000 and liabilities including student loan debt of $ 7, 000. What is Lee's net worth? A) $ 2, 000. B) $ -2, 000. C) $ 12, 000. D) $ -35, 000. Show Answer Correct Answer: B) $ -2, 000. 14. What is the purpose of getting a pre-approval certificate from a financial institution? A) To guarantee you a mortgage interest rate valid for 30 days. B) To provide you with a guideline on how large a mortgage you can afford. C) To guarantee funding so you can make an offer on a house. D) To guarantee you will be approved for a mortgage. Show Answer Correct Answer: B) To provide you with a guideline on how large a mortgage you can afford. 15. Approximately how much would you need to invest today, to receive $ 200 in ten years, if you received an annual interest rate of ten percent? A) $ 65. B) $ 77. C) $ 87. D) $ 97. Show Answer Correct Answer: B) $ 77. 16. Mary earns $ 3500 per month. After payroll deductions from the government, Mary takes home 85 percent of her salary. Mary wants to use a pay yourself first method and puts $ 330 into her savings account before spending anything and pays $ 200 towards her student loans. What is Mary's saving rate? A) 9.4 percent. B) 11.1 percent. C) 15.1 percent. D) 17.8 percent. Show Answer Correct Answer: B) 11.1 percent. 17. Saving money means giving up the opportunity cost to A) Spend in the present. B) Have money in the future. C) Apply for credit cards. D) Save money. Show Answer Correct Answer: A) Spend in the present. 18. Which of the following is true regarding conventional mortgages? A) They require a down payment of at least twenty-five percent. B) They require a down payment of at least twenty percent. C) They receive more favourable interest rates for the buyer. D) They are a form of closed mortgage. Show Answer Correct Answer: B) They require a down payment of at least twenty percent. 19. The correct order of the key components of a financial plan is A) Budgeting, insurance, financing, investing. B) Financing, insurance, budgeting, investing. C) Budgeting, financing, insurance, investing. D) Investing, financing, insurance, budgeting. Show Answer Correct Answer: C) Budgeting, financing, insurance, investing. 20. The ease with which an asset can be converted into cash without hurting its value. A) Liquidity. B) Cash flow. C) Solvency. D) Insolvency. Show Answer Correct Answer: A) Liquidity. ← PreviousNext →Related QuizzesPersonal Finance QuizzesPersonal Financial Planning Quiz 1Personal Financial Planning Quiz 2Personal Financial Planning Quiz 4Personal Financial Planning Quiz 5Personal Financial Planning Quiz 6Personal Financial Planning Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books