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

Need help with your exam preparation?

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

Need help with your exam preparation?

Existing Quiz Clients Login here