Q1 T1

(TCO 1) A(n) _____ summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities.

Student Answer:

insurance prospectus

statement

budget

investment forecast

financial plan Instructor Explanation:
Chapter 1, page 24

Points Received:
0 of 1 Comments:

2.
Question :
(TCO 1) In financial planning, a major activity component involves the

Student Answer:

allocation of current resources for spending.

evaluation of investment alternatives.

evaluation of one's career.

selection of insurance coverage.

establishment of credit. Instructor Explanation:
Chapter 1, pages 2-3

Points Received:
1 of 1 Comments:

3.
Question :
(TCO 1) Higher interest rates can be caused by

Student Answer:

increased saving and investing by consumers.

an increase in the money supply.

a decrease in consumer borrowing.

lower government spending.

a lower money supply. Instructor Explanation:
Chapter 1, page 13

Points Received:
0 of 1 Comments:

4.
Question :
(TCO 1) As Jean Tyler plans to set aside funds for her young children's college education, she is setting a(n) _____ goal.

Student Answer:

intermediate

long-term

short-term

intangible

durable Instructor Explanation:
Chapter 1, page 8

Points Received:
1 of 1 Comments:

5.
Question :
(TCO 1) If you want your money to double in 12 years, what rate of return would you need to earn?

Student Answer:

6%

8%

9%

10%

12% Instructor Explanation:
Chapter 1, page 13

Points Received:
1 of 1 Comments:

6.
Question :
(TCO 1) With an inflation rate of 8%, prices would double in about _____ years.

Student Answer:

10

6

8

9

12 Instructor Explanation:
Chapter 1, page 13

Points Received:
1 of 1 Comments:

7.
Question :
(TCO 1) When it comes to the financial planning process, the