PBMF-Personal Financial Planning

After creating his budget, John realized his expenses exceed his income. To resolve this issue, he can do which of the following?

• Invest more in the stock market

• Eat out less frequently

• Go on a shopping spree

• Work fewer hours

How many categories are there of the family life cycle?

• Six

• Nine

• Eight

• Two

A budget helps prevent debt by detailing which of the following?

• Listing expenses

• Showing current debts

• Identifying shortages before they happen

• Creating new income

The family life cycle helps marketers define which of the following?

• Target market

• Budget expenses

• Someone's age

• Family size

Because the family life cycle changes, goals require which of the following?

• Long term target dates

• Priorities

• Lots of thought

• Constant updating

CDs are similar to savings accounts because of which of the following?

• They have high interest rates

• They have a fixed term

• They have a fixed rate

• They accrue interest

Savings accounts are like money market accounts because of which of the following?

• They have a limited number of withdrawals

• They have a low rate of return

• They have a high minimum balance required

• Check writing is authorized

Unlike Roth IRAs, transitional IRAs have which of the following characteristics?

• Restricts the amount of cash which can be contributed

• Allows individuals to save for retirement

• Has tax benefits

• Requires taxes to be paid on interest

Mutual funds can be described as which of the following statements?

• Comes in two types, common and preferred

• Are professionally managed

• Provides ownership in a company

• Provides cushion for unforeseen financial conditions in an emergency

CDs are a common way to save money and are offered by most financial institutions. In this instance, CD stands for which of the following?

• Compact Disc

• Certificate of development

• Certificate of deposit

• Canadian dollar