Personal Financial Planning Exam 1 || 100% Accurate Answers.
What are some rewards of sound financial planning? correct answers 1. improving your standard
of living
2. spending money wisely
3. accumulating wealth
What is the average income and assets of an american family? correct answers 84,300
What is the systematic process that considers important elements of an individual's financial
affairs in order to fulfill financial goals? correct answers Personal Financial Planning Process
What is the 6 step Financial Planning Process? correct answers 1. Define financial goals
2. Develop financial plans and strategies to achieve goals
3. Implement financial plans and strategies
4. Periodically develop and implement budgets to monitor and control progress against goals
5. Use financial statements to evaluate results of plans and budgets, taking corrective action as
required
6. Redefine goals and revise plans and strategies as personal circumstances change
What is the role of money? correct answers 1. Medium of exchange: used to measure value
2. Utility:Amount of satisfaction derived from purchases versus cost
3. psychological concepts: money is a link to this and key role in personal relationships
What is meant by long term? correct answers 6 years or more
What is meant by intermediate-term? correct answers 2-5 years
, What is meant by short term? correct answers in the next year
What are some plans to achieve financial goals? correct answers 1. Asset Acquisition Planning
2. Liability and Insurance Planning
3. Savings and Investment Planning
4. Employee Benefits Planning
5. Tax Planning
6. Retirement and Estate Planning
What streamlines the number crunching and information gathering involved in financial planning
correct answers technology
How do commission-based planners make money? correct answers Earn commission on selling
financial products
How do fee-only planners make money? correct answers Charge fees based on complexity of
prepared plans
What is the hybrid approach? correct answers Charging fees and collection commissions
What does the financial planning environment contain? correct answers various interrelated
groups of players, each fulfilling certain goals
How does the government play a role? correct answers regulates the level of economic activity
What are two things that constrain personal financial planning? correct answers Taxation and
regulation
What does monetary policy control? correct answers Controls money supply
What are some rewards of sound financial planning? correct answers 1. improving your standard
of living
2. spending money wisely
3. accumulating wealth
What is the average income and assets of an american family? correct answers 84,300
What is the systematic process that considers important elements of an individual's financial
affairs in order to fulfill financial goals? correct answers Personal Financial Planning Process
What is the 6 step Financial Planning Process? correct answers 1. Define financial goals
2. Develop financial plans and strategies to achieve goals
3. Implement financial plans and strategies
4. Periodically develop and implement budgets to monitor and control progress against goals
5. Use financial statements to evaluate results of plans and budgets, taking corrective action as
required
6. Redefine goals and revise plans and strategies as personal circumstances change
What is the role of money? correct answers 1. Medium of exchange: used to measure value
2. Utility:Amount of satisfaction derived from purchases versus cost
3. psychological concepts: money is a link to this and key role in personal relationships
What is meant by long term? correct answers 6 years or more
What is meant by intermediate-term? correct answers 2-5 years
, What is meant by short term? correct answers in the next year
What are some plans to achieve financial goals? correct answers 1. Asset Acquisition Planning
2. Liability and Insurance Planning
3. Savings and Investment Planning
4. Employee Benefits Planning
5. Tax Planning
6. Retirement and Estate Planning
What streamlines the number crunching and information gathering involved in financial planning
correct answers technology
How do commission-based planners make money? correct answers Earn commission on selling
financial products
How do fee-only planners make money? correct answers Charge fees based on complexity of
prepared plans
What is the hybrid approach? correct answers Charging fees and collection commissions
What does the financial planning environment contain? correct answers various interrelated
groups of players, each fulfilling certain goals
How does the government play a role? correct answers regulates the level of economic activity
What are two things that constrain personal financial planning? correct answers Taxation and
regulation
What does monetary policy control? correct answers Controls money supply
