PF F18 Exam review

Which of these statements is true about the cost of living index?

• The cost of living index ranks states 1-50 on how expensive it is to live there

• The cost of living index compares cost of living comparisons between two locations

• The cost of living index will tell you if an employer will help cover your relocation expenses

• The cost of living index is the only factor you should consider if you want to leave your current job

Reducing investment risk by spreading money among a wide variety of investments is known as

• Portfolio diversification

• Investment philosophy

• Index funds

• Capital gains

Which is best suited for building retirement savings?

• Checking account

• Money market account

• 401k account

• Escrow account

The oldest and most widely used indicator of how the stock market is doing is the:

• Better business bureau

• New York stock exchange

• Nasdaq 100 market index

• Dow Jones industrial average index

Which government program provides medical care to low income families?

• SNAP

• TANF

• Earned income credit

• Medicaid

Personal property items such as a home, an automobile, electronic items, and furniture are examples of what type of asset?

• Monetary

• Investment

• Market

• Tangible

Larry and Frieda are expecting their first child. On their to do list are purchasing life insurance and increasing the balance in their emergency savings account. Which principle best illustrated their story?

• You are personally responsible for yourself

• Your present self impacts your future self

• You are better of in a community than by yourself

• Investing helps you cope with risk and uncertainty

How can saving and investing be considered both income and an expense?

• When money is used from savings or investments it is considered an expense. When it is placed into a savings account it is considered income

• When money is used from a savings or investment account, it is considered income. When money is placed in a savings or investment account it is considered an expense

• Placing money into savings and investment accounts is considered to be income but taxes assessed on these accounts are considered to be an expense

• It is not possible for savings and investing to be classified as both an income source and an expense

Larry owns an apartment building. Jimmy rents an apartment from Larry. In the event that the building catches fire and is determined to be a total loss, which type of insurance will Jimmy need to replace his belongings?

• Fire

• Renter’s

• Property

• Liability

Which document provides the answer to how have I managed my money in the past?

• Statement of financial position

• Income and expense statement

• Spending plan

• Net gain and net loss statement