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ECO EXAM 1-2 QUESTIONS AND
ANSWERS 100% PASS
Why is it important to monitor and revise your financial plan on a regular basis?
Your financial position changes over time as does your personal, job, and family situation.
As you get older you will want to lower your goals.
So that you remember the goals you were striving for.
You may decide enjoying consumption now is more important than saving for retirement years.
- ANS Your financial position changes over time as does your personal, job, and family
situation.
One of the six components of your financial plan should be maximizing your tax liability. -
ANS false
Investing in your human capital is the second-best investment you can make. Investing in your
house is the best investment. - ANS false
Obtaining a graduate degree will always improve your personal financial position. - ANS false
Which of the following federal student loan requires financial need to be demonstrated for
eligibility?
Direct unsubsidized
Indirect unsubsidized
Direct subsidized
William D. Ford Direct Plus - ANS Direct subsidized
, ©THESTAR 2025 ALL RIGHTS RESERVED
For a federal direct subsidized student loan, eligibility is not based on financial need, but a
credit check is required. - ANS false
Federal direct unsubsidized student loans are made to eligible undergraduate, graduate, and
professional students, but eligibility is not based on financial need. - ANS true
Interest rates could change due to all of the following except
United Nations resolution to change the U.S. Treasury rate.
shift in savings by investors.
shift in monetary policy of the Fed.
shift in business demand for funds. - ANS United Nations resolution to change the U.S.
Treasury rate.
A risk premium is the amount of interest you might receive over and above the risk-free return
insured by the federal government. - ANS true
The time value of money refers to
personal opportunity costs such as time lost on an activity.
financial decisions that require borrowing funds from a bank.
changes in interest rates due to changes in the supply and demand for money in the national
economy.
the difference in the value of money depending on when it is received. - ANS the difference
in the value of money depending on when it is received.
An annuity is a stream of equal payments that are received or paid at random periods of time. -
ANS false
The higher the interest rate used in determining a future value,
the smaller the future value at the end of the period.
ECO EXAM 1-2 QUESTIONS AND
ANSWERS 100% PASS
Why is it important to monitor and revise your financial plan on a regular basis?
Your financial position changes over time as does your personal, job, and family situation.
As you get older you will want to lower your goals.
So that you remember the goals you were striving for.
You may decide enjoying consumption now is more important than saving for retirement years.
- ANS Your financial position changes over time as does your personal, job, and family
situation.
One of the six components of your financial plan should be maximizing your tax liability. -
ANS false
Investing in your human capital is the second-best investment you can make. Investing in your
house is the best investment. - ANS false
Obtaining a graduate degree will always improve your personal financial position. - ANS false
Which of the following federal student loan requires financial need to be demonstrated for
eligibility?
Direct unsubsidized
Indirect unsubsidized
Direct subsidized
William D. Ford Direct Plus - ANS Direct subsidized
, ©THESTAR 2025 ALL RIGHTS RESERVED
For a federal direct subsidized student loan, eligibility is not based on financial need, but a
credit check is required. - ANS false
Federal direct unsubsidized student loans are made to eligible undergraduate, graduate, and
professional students, but eligibility is not based on financial need. - ANS true
Interest rates could change due to all of the following except
United Nations resolution to change the U.S. Treasury rate.
shift in savings by investors.
shift in monetary policy of the Fed.
shift in business demand for funds. - ANS United Nations resolution to change the U.S.
Treasury rate.
A risk premium is the amount of interest you might receive over and above the risk-free return
insured by the federal government. - ANS true
The time value of money refers to
personal opportunity costs such as time lost on an activity.
financial decisions that require borrowing funds from a bank.
changes in interest rates due to changes in the supply and demand for money in the national
economy.
the difference in the value of money depending on when it is received. - ANS the difference
in the value of money depending on when it is received.
An annuity is a stream of equal payments that are received or paid at random periods of time. -
ANS false
The higher the interest rate used in determining a future value,
the smaller the future value at the end of the period.
