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Chapter 1 pre test

# Chapter 1 pre test - Title CHAPTER 1_PRETEST 1 During even...

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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 Feedback A.deflation 100% B.depreciation 0% C.appreciation 0% D.economic recovery 0% E.inflation 0% Score: 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 Feedback 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

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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 Feedback A.\$5,000 0% B.\$5,250 0% C.\$5,400 100% D.\$6,500 0% 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 Feedback 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 Feedback A.print and media. 0% B.digital sources. 0% 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 Feedback 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?

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Student Response Value Correct Answer Feedback 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 Feedback 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? Student Response Value Correct Answer Feedback 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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