FP EXAM REVIEW 3

The ability to project or anticipate changes that might affect your finances is not part of financial planning.

• True
• False

Changes in the nation and the world can affect your personal finances.

• True
• False

Being a smart shopper will not help you cope with inflation.

• True
• False

If you run into trouble managing your finances, help is available.

• True
• False

Financial planning means developing a strategy to meet present financial needs.

• True
• False

The majority of millionaires drive a current model of a luxury import car.

• True - nope - only 23% of millionaires drive a current year car. 10% drive a Ford and 8.8% drive a Cadillac.
• False - you are right. Only 23% of millionaires drive a current year car. 10% drive a Ford and 88% drive a Cadillac.

Which of the following statements about bonds and stocks is not correct?

• Bondholders have a risk of not being able to sell the bonds in the secondary market.

• Shareholders are actually owners of the company.

• Bondholders are the creditors of the firm.

• The shareholders have the priority to get back the capital when the

  company is liquidated.

Bonds are debt contracts which represent claims for repayment at the maturity date.

• True

• False

The main risk of holding bonds is default risk, which can be reflected by the credit rating of the bonds.

• True

• False

Which of the following is not a right of a stockholder of a listed company

• Vote in the general meeting

• Sell his stock in the stock market

• Receive dividends

• Elect directors