Fin 008 - Personal Finance and Investments » Winter 2021 » Quiz 2

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Question #1
Examples of annuities include all the following EXCEPT
A.   one-time cash flows.
B.   layaway purchases.
C.   retirement plan payouts.
D.   mortgages.
E.     
F.   savings plans.
Question #2
The formula PV x (1+r)t = FV expresses the relationship between
A.   risk and the value of money.
B.   discount rate and risk.
C.   present and future value.
D.   liquidity and time.
E.   utility and value.
Question #3
Time affects value by
A.   decreasing distance to liquidity.
B.   postponing choice.
C.   reducing risk.
D.   delaying opportunity costs.
E.   discounting value.
Question #4
Capital expenditures are usually part of a short-term plan or goal.
A.   TRUE
B.   FALSE
Question #5
Examples of recurring expenditures are
A.   buying houses.
B.   purchases of durable goods.
C.   living expenses.
D.   paying off your loans.
E.   capital improvements.
Question #6
Examples of recurring incomes are
A.   having a yard sale.
B.   birthday gifts.
C.   wages or salary.
D.   taxes paid on dividends.
E.   lottery winnings.
Question #7
The appropriate time period for the budget process is based on
A.   getting manageable and meaningful data.
B.   once you have made lots of money.
C.   being conservative in your expectations.
D.   once you have lost all your money.
E.   reaching your financial goals.
Question #8
The budget process begins with
A.   creating the budget.
B.   reconciling goals and data.
C.   monitoring outcomes and analyzing variances.
D.   adjusting expectations.
E.   defining goals and gathering data.
Question #9
To avoid unwelcome adjustments, you should
A.   switch to less desirable choices.
B.   stick with long-term goals.
C.   avoid emotional attachment to goals.
D.   be conservative in your expectations.
E.   redo your budget each week.
Question #10
A 1099 Form is used to report other or miscellaneous incomes to you and to the IRS.
A.   TRUE
B.   FALSE

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