This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Financial Planning > Personal Financial Planning – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Financial Planning Quiz 4 (20 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) $ 252. B) $ 250. C) $ 248. D) $ 249. Show Answer Correct Answer: A) $ 252. 2. Cash and items that can be quickly converted to cash. A) Liquidity. B) Solvent. C) Insolvent. D) Assets. Show Answer Correct Answer: A) 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) 9.3 years. D) Not enough information. Show Answer Correct Answer: C) 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) Liquidity. B) Interest. C) Time value of money. D) Annuity. Show Answer Correct Answer: A) Liquidity. 8. Anticipated expenses that may vary in amount each month A) Fixed expenses. B) Variable expenses. C) Anticipated expenses. D) Unanticipated expenses. Show Answer Correct Answer: B) 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) Solvent. B) Insolvent. C) Liquid. D) Fixed. Show Answer Correct Answer: A) Solvent. 11. Financial products will be proposed. At this point, the individual can comment on the solutions proposed. A) Data Gathering. B) Financial Plan Recommendation. C) Plan Monitoring. D) Objective Setting. Show Answer Correct Answer: B) Financial Plan Recommendation. 12. What should be the first step in the home-buying process? A) Determine the price range for houses in your target area. B) Determine how much you can afford to pay monthly for a mortgage. C) Compare the costs of buying versus renting. D) Interview three realtors. 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) Goods. B) Services. C) Money moves. D) Goals. Show Answer Correct Answer: D) Goals. 14. You should NOT implement your budget plan when ..... A) Expenses < Income. B) Expenses > Income. C) Expenses = Income. D) None of above. Show Answer Correct Answer: B) Expenses > Income. 15. Money received for work or other sources such as interest earned, child support, alimony, or dividends from stocks. A) Income. B) Net pay. C) Gross pay. D) Expenses. Show Answer Correct Answer: A) Income. 16. Debts, any outstanding bills or loans that must be repaid A) Liabilities. B) Assets. C) Income. D) Expenses. Show Answer Correct Answer: A) Liabilities. 17. Saving for a vacation next Summer or paying off small debts by the end of the year are examples of A) Opportunity costs. B) Short-term goals. C) Long-term goals. D) Personal financial planning. Show Answer Correct Answer: B) Short-term goals. 18. Having funds to buy things that require money above what is normally allowed by a budget within a year. A) Short-term financial goal. B) Long-term financial goal. C) Intermediate financial goal. D) Smart goal. Show Answer Correct Answer: A) Short-term financial goal. 19. The 3rd step in the financial planning process is A) Create a financial plan of action. B) Develop your financial Goals. C) Identify alternative courses of action. D) Evaluate your alternatives. Show Answer Correct Answer: C) Identify alternative courses of action. 20. Opportunity cost represents A) Short-versus long-term financial decisions. B) What you give up as a result of making a decision. C) The financial cost of any opportunity. D) The non-financial cost of any opportunity. Show Answer Correct Answer: B) What you give up as a result of making a decision. ← PreviousNext →Related QuizzesPersonal Finance QuizzesPersonal Financial Planning Quiz 1Personal Financial Planning Quiz 2Personal Financial Planning Quiz 3Personal Financial Planning Quiz 5Personal Financial Planning Quiz 6Personal Financial Planning Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books