The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.

The best way to balance your annual budget is to increase borrowing to cover shortages.

The best way to handle inflation in long-term financial planning is first to consider the history of inflation.

A married couple filing a joint return has Ms. Cindy Cook, a certified public accountant (CPA), complete their return. The Internal Revenue Service (IRS) will hold only Ms. Cook responsible for any errors in the filed return.

The Internal Revenue Service (IRS) will compute taxes for those whose taxable income is less than $100,000 and who do not itemize deductions.

Indicate whether the sentence or statement is true or false. Cash is the only kind of liquid asset.

Compound interest means that a savings account earns interest on the interest previously earned.

You should secure the trade-in value of your current automobile before you start negotiating the final price on the car you are purchasing.

To refinance a mortgage, the lender typically requires you to have at least 20% equity in your home.

You should review your credit bureau file every year.

The average filer of personal bankruptcy has low income, is between 25 and 34 years old, and has no college-level education.

Only stocks can be used in collateral for personal loans.

When the interest rate on savings is lower than the interest rate on a loan, it is less expensive to use your savings to make a purchase.

The first question to ask when considering the purchase of life insurance is whether you can afford it.

A life insurance policy allows the owner to name both a primary beneficiary and contingent beneficiary.

Generally, group insurance plans cost less than individual policies.

Employers are legally required to extend group health insurance benefits to retirees.

Flood are covered under most homeowner’s insurance policies.

Suppose you carelessly, but unintentionally, knocked someone down a flight of stairs in your home. You would be covered by your homeowner’s insurance.

When a brokerage house gives a margin call, you need to provide more collateral, or your investment will be liquidated.

Online trading is financially safer than trading with a human broker.

Capital gains are paid at specified times.

Research shows that most investors are better off investing steadily than trying to time the market.

Growth funds are mutual funds designed for short-term investing.

A technology fund is an example of a sector fund.

It really makes little difference whether you start retirement savings at age 25 or at age 45.

The most popular type of supplemental retirement program is the 401(k) plan.

Estate planning requires the knowledge of wills, trusts, and taxes.

A trustee is the person who writes a will.

Personal financial planning is important because it

Financial planning helps us

Becky graduated with a master’s degree in personal finance planning. After working for 2 years in a small financial planning firm, Beck earns $$85,000 annually and saves$$ 5,000 a year after spending on her current needs. What is her average propensity to consume?

Which of the following financial goals is most useful for developing a financial plan?

Which of the following practices helps an individual survive in a financial crisis?

Which of the following age groups tends to have the highest income?

A budget help in

The three parts of an individual’s balance sheet are his or her

When Phil lists his house on his balance sheet, he should record its

Your car has a market value of $$4,000, while the balance of the loan against it is now$$ 2,500. Your ownership interest in the car is

You are solvent if your ________

Your take-home pay is what you are left with after subtracting withholdings from your

A capital gain is the result of

For those under the age of 65, medical and dental expenses may be included as itemized deductions.

Credit unions are

Convenience is a reason for the growth in popularity of

Funds in commercial banks are protected by the

If you write a check for an amount greater than your account balance, the result will be a(n)

A check you wrote to buy shoes last week has not yet been received and processed by the bank. It is said to be

The first step in the auto-buying process should be

The purchase price of the house you are buying is $140,000. A loan-to-value ratio of 80% will require a down payment of

__________ are the expenses that borrowers pay during the final step of a real estate purchase.

Which of the following is the best way to build a strong credit history?

If you are expecting difficulties in making your payments, it is recommended that you ________

The “5 Cs of Credit” are

As a percent of take-home pay, monthly consumer credit payments should not exceed

The most common use of consumer loans is to finance

Most single-payment loans are secured by

The primary purpose of life insurance is to provide

Which of the following types of insurance policies provides temporary coverage for a set period?

Funds for Medicare benefits comes from

Which of the following is public assistance program that provides health insurance benefits only to those who are unable to pay for health care?

The ________ represents the initial amount that’s not covered by a health insurance policy and thus must be paid by the insured.

Under the Patient Protection and Affordable Care Act (ACA), family health care insurers must allow parents to retain their children on their health insurance policies up to the age of ________

Negligence occurs when someone

A higher home insurance cost may result from

Replacement-cost coverage is the reimbursement of

Comprehensive automobile coverage refers to

You have been offered an opportunity to buy shares of a collection of diversified securities. You will be investing in

A potential investor in a new issue must be given a(n)

A bear market condition is associated with

The ________ is the amount earned on an investment per dollar invested.

A collection of securities assembled to meet common investment goals is called a(n)

An investor receives a return from an investment due to

Which of the following statements about risk is true?

Cash dividends on common stock are most often paid

Return on equity (ROE) is calculated by

Which of the following is a reason to invest in mutual funds?

A fund that is structured to match the performance of a certain market segment is known as a(n)

Leverage involves

______ gives the property owner an allowance for the decline in the physical condition of real estate over time.

Retirement planning starts with

One of the biggest financial benefits of starting early to save for your retirement fund is related to

A written and legally enforceable document expressing how a person’s property should be distributed on his or her death is known as a(n)

You have a spouse, two children, three brothers, one grandchild, and a living father. If you died without a valid will, the person(s) most likely to receive the proceeds of your estate would be your

A document that precisely state the treatments a person wants if he or she becomes terminally ill is called a(n)