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.   mortgages.
D.   savings plans.
E.   layaway purchases.
F.     
Question #2
The formula PV x (1+r)t = FV expresses the relationship between
A.   discount rate and risk.
B.   utility and value.
C.   liquidity and time.
D.   present and future value.
E.   risk and the value of money.
Question #3
Time affects value by
A.   reducing risk.
B.   discounting value.
C.   decreasing distance to liquidity.
D.   delaying opportunity costs.
E.   postponing choice.
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.   capital improvements.
C.   purchases of durable goods.
D.   living expenses.
E.   paying off your loans.
Question #6
Examples of recurring incomes are
A.   having a yard sale.
B.   lottery winnings.
C.   wages or salary.
D.   birthday gifts.
E.   taxes paid on dividends.
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.   reaching your financial goals.
D.   once you have made lots of money.
E.   once you have lost all your money.
Question #8
The budget process begins with
A.   monitoring outcomes and analyzing variances.
B.   defining goals and gathering data.
C.   creating the budget.
D.   adjusting expectations.
E.   reconciling goals and 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.   FALSE
B.   TRUE

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