Financial Planning Quiz Questions Exam 1 || Errorless Answers
100%.
Which of the following best defines personal finance? correct answers The study of how people
develop the cash flows necessary to support their operations and provide for their well-being
In practice, most clients ask their personal finance planner to: correct answers Provide assistance
with a specific problem
Which of the following is a market established worth of a product or a financial instrument?
correct answers Market Value
The following are examples of a service that financial planners typically provide correct answers
1) Comprehensive financial plan construction
2) Taxes reduction through planning, products and structures
3) Retirement Planning
4) Elimination of debt difficulties
Similar to a medical doctor, a financial planner correct answers must be familiar with the overall
state of the client's financial health, regardless of the service being provided
Employee benefits are best defined as correct answers forms of employee compensation other
than salary
Which of the following characterizes personal financial planning services before 1970? correct
answers It was primarily available to the very wealthy
A financial planner establishes the scope of the activity during the personal financial planning
process through correct answers Defining the specific financial planning services that will be
provided
, The underlying goal of a household when making personal financial planning decisions is to
correct answers maximize standard of living
Which of the following steps in the personal financial planning process comes last? correct
answers Monitor and review
If the value of the principal today is $10250 and the interest rate is 1.5%, what is the value of the
principal at the end of 3 years? correct answers 10,718.20
The APR correct answers adjusts for items such as loan processing fees, mortgage insurance, and
points
The present value of a sum is correct answers the value of the sum at the beginning of a given
period of time
What is the future value of $200 invested today for the next 3 years if the interest rate is 1%?
correct answers 206.06
If the value of the principal today is $12000 and the interest rate is 10.5%, what is the total
compounding contribution. at the end of 2 years? correct answers FV = 14652.3
Total contribution = 2652.3
Simple Interest = 2520
TOTAL COMPOUNDING CONT.:132.3
The future value of a sum is a function of correct answers The number of compounding periods,
the amount invested at the beginning, the interest rate
If the value of the principle today is $25000 and the interest rate is 22.5%, what is the value of
the principal at the end of one year? correct answers 30,625
100%.
Which of the following best defines personal finance? correct answers The study of how people
develop the cash flows necessary to support their operations and provide for their well-being
In practice, most clients ask their personal finance planner to: correct answers Provide assistance
with a specific problem
Which of the following is a market established worth of a product or a financial instrument?
correct answers Market Value
The following are examples of a service that financial planners typically provide correct answers
1) Comprehensive financial plan construction
2) Taxes reduction through planning, products and structures
3) Retirement Planning
4) Elimination of debt difficulties
Similar to a medical doctor, a financial planner correct answers must be familiar with the overall
state of the client's financial health, regardless of the service being provided
Employee benefits are best defined as correct answers forms of employee compensation other
than salary
Which of the following characterizes personal financial planning services before 1970? correct
answers It was primarily available to the very wealthy
A financial planner establishes the scope of the activity during the personal financial planning
process through correct answers Defining the specific financial planning services that will be
provided
, The underlying goal of a household when making personal financial planning decisions is to
correct answers maximize standard of living
Which of the following steps in the personal financial planning process comes last? correct
answers Monitor and review
If the value of the principal today is $10250 and the interest rate is 1.5%, what is the value of the
principal at the end of 3 years? correct answers 10,718.20
The APR correct answers adjusts for items such as loan processing fees, mortgage insurance, and
points
The present value of a sum is correct answers the value of the sum at the beginning of a given
period of time
What is the future value of $200 invested today for the next 3 years if the interest rate is 1%?
correct answers 206.06
If the value of the principal today is $12000 and the interest rate is 10.5%, what is the total
compounding contribution. at the end of 2 years? correct answers FV = 14652.3
Total contribution = 2652.3
Simple Interest = 2520
TOTAL COMPOUNDING CONT.:132.3
The future value of a sum is a function of correct answers The number of compounding periods,
the amount invested at the beginning, the interest rate
If the value of the principle today is $25000 and the interest rate is 22.5%, what is the value of
the principal at the end of one year? correct answers 30,625
