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