WorksheetsChapter 1 Section Review
Total questions: 20
Worksheet time: 2hrs 31mins
In general, the more education you have, the ________ your ________.
higher; salary
lower; salary
lower; debt
higher; debt
The best time to start investing money to reach your financial goals is ________.
in your twenties
in your thirties
in your forties
now
Which of the following supports the argument that many Americans pay too little attention to their personal finances?
Bankruptcy involves a legal court taking over some or all of the finances of a person who is no longer able to pay his or her bills.
About half of Americans working full-time report having to live paycheck to paycheck.
Workers can expect the federal government and possibly their state and local governments to deduct taxes from each paycheck they earn.
A higher level of education generally leads to a higher salary.
Bankruptcy is a legal process in which a(n) ________ takes over some of the finances of a person who is unable to pay his or her bills.
bank
investor
financial advisor
court
Which of the following is NOT a potential financial problem for which you should plan?
Higher interest rates for savings accounts
Anticipated problems with Social Security
Uncertain economic future
Increased health care costs
Understanding the opportunity costs of all your purchases is most likely to help you think about and change your ________.
retirement plans
study habits
educational plans
spending habits
A(n) ___________ includes food, water, clothing, and shelter.
luxury
need
expense
want
___________ decision-makers follow a step-by-step process to reach a decision.
Rational
Thoughtful
Impulsive
Persuasive
Good financial decisions lead to ____________.
flexibility
better paying jobs
a happy marriage
good health
If a financial investment doesn't work out in your favor, you should ___________.
take responsibility for your actions
assume that that the stock market is unstable
blame the friend who told you about the investment
invest more money while the price is down
Which of the following is NOT a reason that the type of education you choose to pursue is a financial decision?
Your level of education significantly affects your career options.
Post-high school education is expensive.
You will be more likely to enjoy a job that holds your interest.
The number of years you go to school is related to your earning potential.
__________ will need emergency funds at some point in their lives.
Fewer than 25% of the population
Between 25% and 50% of the population
About 50% of the population
Most people
The ________ you begin saving to finance a long-term goal, the ________ money you have to set aside on a regular basis.
earlier; less
earlier; more
earlier; more unpredictable the amount of
later; more unpredictable the amount of
Which of the following is NOT a financial goal?
Retiring at an early age
Enjoying your career
Establishing an emergency fund
Making charitable donations
Which of the following is an example of charitable giving?
Buying raffle tickets for a chance at a prize at a fundraiser for a homeless shelter
Buying products with a prepaid credit card
Buying vegetables at the local farmer's market
Buying clothing at a second-hand thrift store
Because of the dangers posed by the Internet, you should ________ use it for financial planning.
cautiously
rarely
freely
never
You would be LEAST likely to use a calculator on a financial planning website to do which of the following?
Calculate your earnings from investments
Determine a mortgage payment for a home
Determine the type of car you should purchase
Calculate your return on savings
Which of the following is a certification held by a financial advisor that indicates a certain level of training and expertise?
A CFP
An MA
A FAC
An IT
Which of the following is NOT an important question to ask when selecting a financial advisor?
Do I feel comfortable with the advisor?
Can the advisor provide references from satisfied customers?
Does the advisor have personal plans for an early retirement?
Does the advisor have a relevant certification?
A financial advisor's area of expertise should ________.
be broad
match your needs
be independent
be narrow
