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WorksheetsPersonal Financial Planning - Final Assessment
Total questions: 10
Worksheet time: 5mins
Short-term goals cover a time period of one to two years.
True
False
Budgeting finances requires calculating __________ and __________.
Income; expenses
Investments; savings
Utility; opportunity cost
Inflation; taxes
__________ explains how a person changes financial position, earnings, consumption and savings throughout the life cycle.
Financial evolution
Money life cycle
Portfolio growth
Family life cycle
Budgets assist in reorganizing finances to reduce ________ or increase ________.
Problems; happiness
Funds; expenses
Debt; savings
Consistency; originality
If income exceeds expenses, which of the following is recommended?
Increase income sources
Go on vacation
Decrease income sources
Research investment and savings options
Anyone can open a 401K savings plan.
True
False
Which of the following is NOT true of a Roth IRA?
Can be withdrawn at any time
Applies a 10 percent tax penalty on any withdrawals made before the age of 59.5
Does not require taxes paid on the interest
Does not reduce tax liability
Common stock differs from preferred stock in which of the following ways?
Voting rights
Exchange rates
Callable features
Liquidity
A ________ account has a higher rate of return, but a __________ account has a lower required minimum balance.
Savings; money market
Money market; savings
Which of the following accurately describes stocks?
Employee-sponsored retirement benefit plans
Savings accounts which include tax benefits
Investments providing ownership of public companies
Contributions for the government required of people
