1. The borrowing' component in a financial plan relates to A) Acquiring adequate insurance coverage B) Investing for long-term growth C) Setting up a budget D) Obtaining financial resources from employment, investments or ownership E) Maintaining control over credit-buying habits 2. Jennifer Rodriguez plans to attend graduate school in 5 years. She thinks that she will need a total of $32,000 to pay for school, and she wants to save money each month to reach her goal. What type of computation should she use?-52081 A) Present value of a single amount B) Future value of a single amount C) Simple interest D) Present value of an annuity E) Future value of an annuity 3. Attempts to increase income through employment are part of the _____________ component of financial planning. A) Obtaining B) Planning C) Saving D) Borrowing E) Spending 4. Steve Wilson wants to deposit $150 per month into an account earning 4 percent for the next 3 years, so he can purchase a used car at that time. What type of computation would he use to determine the amount he will have for his purchase? A) Present value of a single amount B) Future value of a single amount C) Simple interest D) Present value of an annuity E) Future value of an annuity 5. If a $10,000 investment earns interest of $500 in one year, what is its rate of return? A) 5 percent B) 10 percent C) 50 percent D) 75 percent E) 100 percent 6. The rising or falling of prices that causes changes in buying power is referred to as ____________ risk. A) interest-rate B) inflation C) income D) personal E) liquidity 7. If you want $1,000 three years from now and you earn 4 percent on your savings, how much do you need to deposit? A) $885 B) $889 C) $1,000 D) $1,030 E) $1,040 8. The financial activities for a young, single person will probably be the same as those for an older couple with no dependent children at home. A) True B) False 9. The actual cost of living increase for a household will be: A) Greater than the inflation rate as reported by the CPI since the index excludes the product or service with the highest inflation rate for the past 12 months B) Lower than the inflation rate as reported by the CPI since the index excludes the product or service with the lowest inflation rate for the past 12 months C) Equal to the inflation rate as reported by the CPI since it includes all products and services whether or not the prices have changed in the past 12 months D) Either greater than or less than the inflation rate as reported by the CPI depending on the household's cost of necessities purchased E) Zero since the CPI does not measure consumer price changes 10. The saving component of financial planning focuses on long-term security and includes: A) A regular savings plan for emergencies B) A current will C) Bankruptcy counseling D) A realistic budget for your current financial situation E) Minimizing transportation expenses through careful planning 11. The major function of personal financial planning is to A) Reduce taxes. B) Increase savings. C) Achieve personal economic satisfaction. D) Improve your credit rating. E) Obtain adequate insurance protection