BUSN 380 Week 1 Quiz

Question 1.1. The danger of lost buying power during times of rising prices is referred to as (Points : 1) inflation risk. economic risk. personal risk. interest-rate risk. money risk. 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) The Federal Reserve has the responsibility to (Points : 1) monitor illegal business activities. approve spending by Congress. set federal income tax rates. maintain an adequate supply of money. maintain a balanced budget for the federal government. Question 4.4. (TCO 1) The _____ refers to stages that an individual goes through based on age, financial needs, and family situation. (Points : 1) financial planning process financial cycle adult life cycle personal economic cycle tax planning process 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) Personal financial planning has a main goal of (Points : 1) reducing a person's tax liability. saving and investing for future needs. spending to achieve financial objectives. saving, spending, and borrowing based on current needs. achieving personal economic satisfaction. 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) Which goal below would be the easiest to implement and measure in terms of accomplishment? (Points : 1) "Reduce our debt payments." Save $100 a month to create a $4,000 emergency fund." "Save funds for an annual vacation." "Invest $2,000 a year for retirement." Question 10.10. (TCO 1) _____ risk refers to the changing cost of money. (Points : 1) Monetary Inflation Economic Personal Interest rate 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