Question 1

During the first few years of a home mortgage,almost all the payments go for interest on the loan.This high interest is a reason it is better for young people to rent rather than buy.

Accepted Answer

A) True 
 B)False

Question 2

Don is young and newly married.He and his wife plan to have children in the near future and Don wants to get a significant amount of life insurance coverage at as low a cost as possible.He would be well advised to purchase a term insurance policy.

Accepted Answer

A) True 
 B)False

Question 3

The first step in getting control of your finances is to prepare a budget.

Accepted Answer

A) True 
 B)False

Question 4

The only way to accumulate enough money to do all of the things you want to do late in life is to:

Accepted Answer

A)  take an inventory of your financial assets.
B)  make more than you spend.
C)  avoid bankruptcy.
D)  satisfy the demands of your creditors.E) All of the above
F) A) and D)

Question 5

Before getting married,a couple should discuss and agree upon a financial strategy.

Accepted Answer

A) True 
 B)False

Question 6

_________ is a form of life insurance that provides both a savings plan and pure insurance coverage.

Accepted Answer

A)  Term life insurance
B)  Growth-centered life insurance
C)  Whole life insurance
D)  Multiyear level-premium insuranceE) B) and C)
F) A) and D)

Question 7

Social Security is the term used to describe the Old Age,Survivors,and Disability Insurance Program.

Accepted Answer

A) True 
 B)False

Question 8

LaTasha is attending her local community college so she can get a good job.She knows that financial planning begins first with making money.

Accepted Answer

A) True 
 B)False

Question 9

Tracking business and personal spending by categories is an important technique to control expenditures.

Accepted Answer

A) True 
 B)False

Question 10

Zach quit his job to open his own Internet consulting business.He now realizes that he no longer has the benefit of a corporate retirement system.He should consider investing in a(n) :

Accepted Answer

A)  simple 401(k) plan.
B)  simple IRA plan.
C)  automated trust account.
D)  Keogh plan.E) C) and D)
F) A) and D)

Question 11

The number of workers paying into Social Security per retired individual receiving benefits is decreasing.

Accepted Answer

A) True 
 B)False

Question 12

A retirement plan where employers often match part of an employee's contribution is known as a:

Accepted Answer

A)  simple IRA.
B)  Roth IRA.
C)  Keogh plan.
D)  401(k) plan.E) None of the above
F) B) and D)

Question 13

The person who is named in your will to assemble the assets in your estate,handle taxes,and distribute the assets is called your proxy.

Accepted Answer

A) True 
 B)False

Question 14

Bonnie and Clyde are newly married college graduates.Both have jobs with bright futures.One strategy that they could use to accumulate capital for investment purposes,would be to:

Accepted Answer

A)  borrow heavily to buy a house.
B)  use their credit cards to acquire assets while prices are relatively low.
C)  live on just one of their incomes and save the other.
D)  quit their jobs and go back to college for a graduate degree.E) All of the above
F) C) and D)

Question 15

Keogh plans are intended to help small business owners save for retirement.

Accepted Answer

A) True 
 B)False

Question 16

Regardless of potential changes,you can count on Social Security to provide you with a comfortable retirement.

Accepted Answer

A) True 
 B)False

Question 17

For workers who qualify,the earnings from income invested in a traditional IRA are:

Accepted Answer

A)  not taxed until the funds are withdrawn.
B)  never taxed.
C)  taxed,at the time they are earned,but at the lowest individual rate.
D)  taxed both at the time the money is earned and at the time the earnings are withdrawn.E) A) and B)
F) A) and C)

Question 18

The death benefits of a variable life insurance policy vary depending upon the performance of the investment.

Accepted Answer

A) True 
 B)False

Question 19

The best financial planners are actually insurance salespeople.

Accepted Answer

A) True 
 B)False

Question 20

Even though they are in debt,most of today's college graduates are capital-rich.

Accepted Answer

A) True 
 B)False

Exam 23: Bonus C: Managing Your Personal Finances

Tracking business and personal spending by categories is an important technique to control expenditures.

Correct AnswerverifiedShow Answer

A retirement plan where employers often match part of an employee's contribution is known as a:

Correct AnswerverifiedShow Answer

During the first few years of a home mortgage,almost all the payments go for interest on the loan.This high interest is a reason it is better for young people to rent rather than buy.

Correct AnswerverifiedShow Answer

_________ is a form of life insurance that provides both a savings plan and pure insurance coverage.

Correct AnswerverifiedShow Answer

Even though they are in debt,most of today's college graduates are capital-rich.

Correct AnswerverifiedShow Answer

For workers who qualify,the earnings from income invested in a traditional IRA are:

Correct AnswerverifiedShow Answer

Before getting married,a couple should discuss and agree upon a financial strategy.

Correct AnswerverifiedShow Answer

Keogh plans are intended to help small business owners save for retirement.

Correct AnswerverifiedShow Answer

The only way to accumulate enough money to do all of the things you want to do late in life is to:

Correct AnswerverifiedShow Answer

Bonnie and Clyde are newly married college graduates.Both have jobs with bright futures.One strategy that they could use to accumulate capital for investment purposes,would be to:

Correct AnswerverifiedShow Answer

Don is young and newly married.He and his wife plan to have children in the near future and Don wants to get a significant amount of life insurance coverage at as low a cost as possible.He would be well advised to purchase a term insurance policy.

Correct AnswerverifiedShow Answer

The best financial planners are actually insurance salespeople.

Correct AnswerverifiedShow Answer

The person who is named in your will to assemble the assets in your estate,handle taxes,and distribute the assets is called your proxy.

Correct AnswerverifiedShow Answer

Social Security is the term used to describe the Old Age,Survivors,and Disability Insurance Program.

Correct AnswerverifiedShow Answer

The first step in getting control of your finances is to prepare a budget.

Correct AnswerverifiedShow Answer

LaTasha is attending her local community college so she can get a good job.She knows that financial planning begins first with making money.

Correct AnswerverifiedShow Answer

Regardless of potential changes,you can count on Social Security to provide you with a comfortable retirement.

Correct AnswerverifiedShow Answer

The number of workers paying into Social Security per retired individual receiving benefits is decreasing.

Correct AnswerverifiedShow Answer

Zach quit his job to open his own Internet consulting business.He now realizes that he no longer has the benefit of a corporate retirement system.He should consider investing in a(n) :

Correct AnswerverifiedShow Answer

The death benefits of a variable life insurance policy vary depending upon the performance of the investment.

Correct AnswerverifiedShow Answer

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