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Chapter 1 Pre-Test

# Chapter 1 Pre-Test - Title CHAPTER 1_PRETEST 1 During even...

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View Attempt 1 of unlimited Title: CHAPTER 1_PRETEST 1. During __________, even though prices decline spending slows because consumers expect prices to continue to decline. Student Response Value Correct Answer A . def lati on 1 0 0 % B . dep rec iati on 0 % C . app rec iati on 0 % D . eco no mi c rec ove ry 0 % E . infl ati on 0 % Score:

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1/1 Comments: 2. John is planning to go to graduate school in a program that will take three years. John wants to have available \$10,000 available each year for his school and living expenses. If he earns 6% on his investments, how much must be deposited at the start of his studies for him to withdraw \$10,000 a year for three years? Student Response Value Correct Answer A.\$10,000 0% B.\$18,390 0% C.\$26,730 100% D.\$29,100 0% E.\$30,000 0% General Feedback: Present Value of annuity (Table 1-D), \$10,000 x 2.673 = \$26,730 Score: 1/1 Comments: 3. The future value of \$1,000 deposited a year for 5 years earning 4 percent would be approximately Student Response Value Correct Answer A.\$5,000 0% B.\$5,250 0% C.\$5,400 100% D.\$6,500 0%
Student Response Value Correct Answer E.\$8,200 0% General Feedback: Future Value of an annuity (Table 1-B), \$1,000 x 5.416 = \$5416. Score: 1/1 Comments: 4. If you desire your money to double in 6 years, what rate of return would you need to earn? Student Response Value Correct Answer A.6 percent 0% B.8 percent 0% C.9 percent 0% D.10 percent 0% E.12 percent 100% General Feedback: Rule of 72, 72/x =6, 6X =72, 72/6 = 12 Score: 1/1 Comments: 5. Sources for financial planning can be found from: Student Response Value Correct Answer A.print and media. 0% B.digital sources. 0%

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Student Response Value Correct Answer C.financial institutions. 0% D.financial experts. 0% E.all of the above 100% Score: 1/1 Comments: 6. One aspect of financial planning is to buy stocks, bonds and mutual funds with the potential for long term growth. Which aspect of financial planning does this deal with? Student Response Value Correct Answer A.Borrowing 0% B.Spending 0% C.Managing Risk 0% D.Investing 100% E.Retirement and Estate Planning 0% Score: 1/1 Comments: 7. One aspect of financial planning is to control your use of credit. Which aspect of financial planning does this deal with?
Student Response Value Correct Answer A.Borrowing 100% B.Spending 0% C.Managing Risk 0% D.Investing 0% E.Retirement and Estate Planning 0% Score: 1/1 Comments: 8. Paul Carter is 43 years old, married and has three children, ages 13, 10 and 5. Which influence on financial planning does this demonstrate? Student Response Value Correct Answer A.Adult Life Cycle 100% B.Economic Factors 0% C.Global Influences 0% D.Opportunity Costs 0% E.None of the above 0% Score: 1/1 Comments: 9. John Dean has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow. What type of goal would this be for John?

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Student Response Value Correct Answer A.Consumable-products goal 0% B.Durable-products goal 100% C.Intangible goal 0% D.Intermediate goal 0% E.Long term goal 0% Score: 1/1 Comments: 10.
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Chapter 1 Pre-Test - Title CHAPTER 1_PRETEST 1 During even...

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