Question 1. 1. (TCO 1) When a person faces a trade-off and must give up something by making a choice, this is referred to as (Points : 1)

taking out a loan. opportunity cost. the evaluation of alternatives. a decision-making process. a dilemma.

Question 2. 2. (TCO 1) When bankruptcy is experienced, this can be the result of poor decisions in the _____ component of financial planning. (Points : 1)

sharing saving borrowing lending protecting

Question 3. 3. (TCO 1) From an economic standpoint, prices in the marketplace are determined through (Points : 1)

the stock market. the government. employment. supply and demand. interest rates.

Question 4. 4. (TCO 1) Loan risk can increase with _____. (Points : 1)

constant interest rates a short time to maturity lower consumer prices rising consumer prices a good credit rating

Question 5. 5. (TCO 1) The future value of an account in which $2,000 is deposited each year for 5 years, and which earns 4%, is approximately _____ after 5 years. (Points : 1)

$2,000 $2,400 $10,000 $400 $10,800

Question 6. 6. (TCO 1) Higher employment levels can be attributed to (Points : 1)

lower consumer prices. reduced employment levels. lower interest rates. higher employment levels. increased consumer spending.

Question 7. 7. (TCO 1) When it comes to the financial planning process, the first step is to (Points : 1)

develop financial goals. implement the financial plan. evaluate and revise your actions. analyze your current personal and financial situation. create a financial plan of action.

Question 8. 8. (TCO 1) If a person wants to determine the current value of a desired amount for the future, the following computation would be used. (Points : 1)

Simple interest Present value of a single amount Future value of a series of deposits Future value of a single amount Present value of a series of deposits

Question 9. 9. (TCO 1) Brad Opper has a goal of "saving $50 a month for vacation." Brad's goal lacks (Points : 1)

a realistic perspective. specific terms. the type of action to be taken. a purpose. a time frame.

Question 10. 10. (TCO 1) If John Smith is making plans to make holiday purchases at the end of the year, he is setting a(n) _____ goal. (Points : 1)

intermediate long-term short-term intangible durable

Question 11. 11. (TCO 1) You want to determine the current value of an annuity that pays $350 a month for the next 5 years. What type of calculation would provide you with this value? (Points : 1)

Future value of a single amount Simple interest Present value of a single amount Future value of a series of deposits Present value of a series of deposits

Question 12. 12. (TCO 1) If an employee has tax-deferred benefits, this means that the benefits are (Points : 1)

taxed at some point in the future. not subject to state income tax. exempt from federal income tax. taxed at a special rate.

Question 13. 13. (TCO 1) A cash flow statement reports a person's or a family's (Points : 1)

net worth. plan for spending. value of investments. balance of savings. current income and payments.

Question 14. 14. (TCO 1) A _____ r