FP 101 Week 2 Quiz

Complete the Week 2 Quiz provided by your facilitator.

Submit your Week 2 Quiz as a Microsoft® Word® attachment to the Assignment Files tab.

1. The stages that an individual goes through based on stages in the family and financial needs is called the
2. Financial planning process
3. Budgeting procedure
4. Adult life cycle
5. Personal economic cycle

2. The Rule of 72 is
3. A tool to determine the number of years until retirement for an employee
4. Used to estimate how long it takes for prices to double using a given annual inflation rate
5. The legal code for requiring companies to provide a match on retirement savings
6. Used to calculate interest rates for savings

3. Which is NOT an influence in financial goals?
4. Global influences
5. Economic conditions
6. Interest rates
7. Financial intimacy with a partner

4. Which is NOT an identifiable financial goal?
5. Retirement and estate planning
6. Risk management
7. Living on a fixed income
8. Saving

5. Attempts to increase income are part of the __________ component of financial planning.
6. Obtaining
7. Planning
8. Saving
9. Spending

6. SMART Goals contain all of the following except:
7. Specific – knowing exactly what the goals are and how to attain them
8. Action Oriented – the bases for the goals
9. Manageable – to be able to understand the written goals
10. Time based – the time frame needed to reach the goal

7. Short-term goals are:
8. Goals to be attained within a year or so
9. Contain college plans for children
10. Creating an estate plan
11. Making a big purchase

8. Long-term goals are:
9. Goals to be attained within two years
10. Uses short-term goals to attain certain goals in five or more years
11. Create a Christmas fund
12. Plan for summer vacation

9. Which of the following intermediate goals is stated most clearly?
10. Buy a car for less than $17,000 within six months.
11. Retire in ten years at age 65 with $2,000,00 in my 401(k) account.
12. Purchase a home with a mortgage no greater than $150,000 within three years.
13. Set up an emergency fund.

10. Fran has a goal of “saving $25 per month for a TV.” Fran’s goal lacks
11. Measurable terms
12. A realistic perspective
13. A specific objective
14. A time frame

11. Opportunity cost can be defined as
12. A trade-off of a decision
13. Failing at goals
14. Creating financial wisdom
15. The amount paid for taxes when a purchase is made

12. Which of the following is an example of opportunity cost?
13. Renting an apartment near a school
14. Saving money instead of taking a vacation
15. Purchasing automobile insurance
16. Using a personal computer for financial planning

13. To calculate the time value of money, we need to consider all of the following except the
14. Amount of the savings
15. Annual interest rate
16. Length of time the money is invested
17. Type of investment

14. What is the correct formula for future value
15. Time period X present interest rate
16. Investment in savings X interest rate X period of time
17. Time X interest
18. None of these

15. Which statement best explains the purpose of present value
16. Calculating the cost of future investments
17. Finding the current value for a future amount based on a certain interest rate and certain time frame
18. Also known as discounting
19. To reach an estimated guess