Which of the following statements concerning cash flow planning is correct?

The goal is to maximize net cash flow.

The goal should be to invest for the future, rather than maintaining current lifestyle.

The goal should be to identify strengths and weaknesses in the clients cash flows.

The goal is to optimize net cash flow.

2.

All the following are advantages of budgeting, EXCEPT:

It helps reveal inefficient uses of resources.

It fosters creativity and judicious risk-taking.

It provides a way of measuring progress toward goals.

It heightens awareness of and attention to the need to set financial goals.

3.

Robert and Jennifer are looking to refinance their $400,000 mortgage. Which of the following mortgages will allow them to pay the smallest monthly payment this year if they all charge a 5% interest rate?

30-year standard mortgage

30-year biweekly mortgage

30-year balloon mortgage

30-year adjustable rate mortgage

4.

Banks will typically grant home equity loans or lines of credit up to what loan-to-value percentage?

20 percent

40 percent

60 percent

80 percent

5.

Chase, age 26, is just beginning his career as a computer analysts after completing graduate school. He is engaged and planning to purchase a home soon after marrying his college sweetheart. His life stage is somewhat typical for someone in the _____ life stage.

		1
		2
		3
		4 6.

Which of the following are appropriate investments for Logans emergency fund assets?

I Checking account

II Money market accounts

III Short-term certificates of deposit

IV U.S. Treasury bills

		I and III only
		II and IV only
		II and III only
		I, II, III, and IV