This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Financial Planning > Personal Financial Planning – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Financial Planning Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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) The value your deposit will be worth if you deposit a series of regular, equal deposits. D) Bread. Show Answer Correct Answer: B) The amount of money you need to deposit now in order to have a certain amount in the future. 2. 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. 3. 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. 4. 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 a net cash flow of $ 400. B) Jill has net expenses of $ 400. C) Jill has a net cash flow of $ 200. D) Jill has net income of $ 400. Show Answer Correct Answer: A) Jill has a net cash flow of $ 400. 5. Quantifying monetary objectives with definite time frames. Prioritizing objectives. A) Data Analysis. B) Objective Setting. C) Plan Monitoring. D) Financial Plan Recommendation. Show Answer Correct Answer: B) Objective Setting. 6. 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. 7. What is the term for the interest rate financial institutions quote? A) Nominal. B) Effective. C) Annual. D) Real. Show Answer Correct Answer: A) Nominal. 8. The increase of an amount of money due to earned interest or dividends. A) Time value of money. B) Interest. C) Getting paper. D) Liquidity. Show Answer Correct Answer: A) Time value of money. 9. Income that is consistent and is typically received around the same time each month. A) Anticipated income. B) Unanticipated income. C) Anticipated expense. D) Unanticipated expense. Show Answer Correct Answer: A) Anticipated income. 10. A person who purchases and uses goods or services. A) Shopper. B) Bank. C) Consumer. D) Lender. Show Answer Correct Answer: C) Consumer. 11. Stated below are the factors causing the NESTLE stock price to move up and down, except A) Performance of the company's in the market. B) Rumour of the company being circulated. C) Future plans announced by the company's leader. D) Numbers of citizens playing Facebook in Malaysia. Show Answer Correct Answer: D) Numbers of citizens playing Facebook in Malaysia. 12. Using surveys, questionnaires and interviews to gather quantitative and qualitative information from the individual. A) Data Gathering. B) Financial Plan Recommendation. C) Plan Monitoring. D) Objective Setting. Show Answer Correct Answer: A) Data Gathering. 13. 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. 14. 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) Inflation rate risk. B) The car color choice is unavailable. C) The engine is old. D) Personal risk. Show Answer Correct Answer: A) Inflation rate risk. 15. 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. 16. 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. 17. Arranging to spend, save, and invest money. A) Personal Financial Planning. B) Interest. C) Values. D) Goals. Show Answer Correct Answer: A) Personal Financial Planning. 18. 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) $ 4856. D) $ 4644. Show Answer Correct Answer: C) $ 4856. 19. The day-to-day financial activities necessary to get the most from your money. A) Money management. B) Budgeting. C) Personal financial planning. D) Personal property inventory. Show Answer Correct Answer: A) Money management. 20. 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) Security. C) Relationship with others. D) Self-fulfillment. Show Answer Correct Answer: A) Food. ← PreviousNext →Related QuizzesPersonal Finance QuizzesPersonal Financial Planning Quiz 1Personal Financial Planning Quiz 2Personal Financial Planning Quiz 3Personal Financial Planning Quiz 4Personal Financial Planning Quiz 6Personal Financial Planning Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books