Financial Planning I Mid-Term Review

Julie, a newly promoted manager, lacks the time to properly prepare employee work schedules and assigns this duty to the assistant manager. Which time management technique is Julie using?

• delegating activities

• standardizing tasks

• setting objectives

• procrastinating

Beau is stressed out because he agreed to take on three new clients when his calendar is already full. Which time-management principle does he need to learn?

• get enough sleep

• focus on goals, not on tasks

• divide large projects into smaller parts

• be realistic in accepting responsibility for work

Determining which projects a business should invest in is known as:

• return on capital.

• capital budgeting.

• capital structuring.

• the cash conversion cycle.

A marketplace where trading of securities such as equities, bonds, currencies, and derivatives occurs is referred to as a:

• call market.

• bear market.

• financial market.

• foreign exchange market.

In which financial market do people make investments in cocoa beans and corn?

• money

• insurance

• soft commodities

• selective property

Individuals are most likely to require the services of a mortgage company when they want to:

• purchase real estate.

• earn interest on savings.

• acquire liability insurance.

• invest in the stock market.

Brian recently got his first part-time job as a food bagger at a local grocery store. He needs a safe place to store his income that allows him to withdraw money easily and frequently. Brian should consider opening which type of account?

• savings

• checking

• health savings

• individual retirement

Which is a disadvantage of investing in a savings account?

• The account's potential for loss is high.

• The rate of return fails to keep up with inflation.

• One must pay a penalty for withdrawing money early.

• A minimum balance is required to keep the account active.

Which is an advantage of investing in bonds?

• They are very low risk.

• They are insured by the FDIC.

• They offer extremely high rates of return.

• They permit people to access their money at any time.

Which statement is true about certificates of deposit?

• They may depreciate in value.

• The riskiest investment is a certificate of deposit.

• One must pay a penalty for withdrawing money early.

• Certificates of deposit are issued by corporations or governments.