1. (TCO A) Sam and Diane are in their late 20s with three young children. Their most important financial planning concerns would probably include all of the following except (Points : 4)

a asset acquisition planning. b liability and insurance planning. c retirement and estate planning. d savings and investment planning. e employee benefits planning.

Question 2.2. (TCO A) The three key groups in the economic environment are (Points : 4)

a government, regulation, and business. b government, consultants, and business. c consumers, economists, and business. d consumers, business, and managers. e government, consumers, and business.

Question 3.3. (TCO A) As the rate of inflation increases (Points : 4)

A the cost of living goes down. B interest rates decrease. C pay checks decrease. D retirement plans have more difficulty meeting their goals. E purchasing power of a dollar increases.

Question 4.4. (TCO A) Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most (present value) you should pay for this investment? (Points : 4)

A $49,179 B $175,590 C $201,000 D $225,682 E $250,000

Question 5.5. (TCO A) Marcus buys his wife a valuable painting for $20,000. He purchases it using $15,000 from his savings and a $5,000 loan. How does this transaction affect Marcus's balance sheet? (Points : 4)

A .His assets increase. B .His liabilities increase. C .His net worth stays the same. D. A and B E. A, B, and C