FIN3140 FSU: Exam 1 ACTUAL
QUESTIONS AND CORRECT ANSWERS
Level of Living - Correct answers✔The way we can afford to live today and make ends meet
Standard of Living - Correct answers✔How we want to live financially
The Financial Planning Process - Correct answers✔1.Determine current financial situation
2. Develop Financial Goals
3. Identify alternative courses of actions
4. Evaluate alternatives
5. Create and implement the plan
6. Review and revise the plan
SMART goals - Correct answers✔Specific, Measurable, Attainable, Realistic, Timely
Money _____ is better than money _____ because of interest / Time Value of Money - Correct
answers✔Money now is better than money later
future value of a single amount - Correct answers✔FV = PV (1 + r)^n
Present Value of Money - Correct answers✔PV = FV / (1+r)^n
Future Value of a Series of Deposits - Correct answers✔FV = PMT x (1+4)^n - 1 / r
, Types of Risks - Correct answers✔inflation, interest rate, income, personal, liquidity
Cost of Living Comparison - Correct answers✔Index(1) x Salary (2) / Index (2) = Buying Power
Career Fields with Potential - Correct answers✔Data analytics, financial services, IT,
management, sales
Financial Records System - Correct answers✔facilities handling financial affairs, promotes
timely bill paying, etc.
Items to File at home - Correct answers✔Personal and employment records, money management
records, taxes, housing records, insurance records, investment records, etc.
Items for safe deposit box - Correct answers✔Birth, marriage, and death certificates, original
copy of will, citizenship, military, adoption/custody, household inventory, mortgage, deeds, titles,
stocks and bonds certs, collectibles
Records to Retain indefinitely - Correct answers✔birth, marriage, death certiifcates
wills social security info documents relating to purchase and sale of real estate
3 components of successful planning - Correct answers✔specified values, explicitly state goals,
consistent strategies
Balance Sheet - Correct answers✔A financial statement that reports assets, liabilities, and
owner's equity (net worth) on a specific date.
QUESTIONS AND CORRECT ANSWERS
Level of Living - Correct answers✔The way we can afford to live today and make ends meet
Standard of Living - Correct answers✔How we want to live financially
The Financial Planning Process - Correct answers✔1.Determine current financial situation
2. Develop Financial Goals
3. Identify alternative courses of actions
4. Evaluate alternatives
5. Create and implement the plan
6. Review and revise the plan
SMART goals - Correct answers✔Specific, Measurable, Attainable, Realistic, Timely
Money _____ is better than money _____ because of interest / Time Value of Money - Correct
answers✔Money now is better than money later
future value of a single amount - Correct answers✔FV = PV (1 + r)^n
Present Value of Money - Correct answers✔PV = FV / (1+r)^n
Future Value of a Series of Deposits - Correct answers✔FV = PMT x (1+4)^n - 1 / r
, Types of Risks - Correct answers✔inflation, interest rate, income, personal, liquidity
Cost of Living Comparison - Correct answers✔Index(1) x Salary (2) / Index (2) = Buying Power
Career Fields with Potential - Correct answers✔Data analytics, financial services, IT,
management, sales
Financial Records System - Correct answers✔facilities handling financial affairs, promotes
timely bill paying, etc.
Items to File at home - Correct answers✔Personal and employment records, money management
records, taxes, housing records, insurance records, investment records, etc.
Items for safe deposit box - Correct answers✔Birth, marriage, and death certificates, original
copy of will, citizenship, military, adoption/custody, household inventory, mortgage, deeds, titles,
stocks and bonds certs, collectibles
Records to Retain indefinitely - Correct answers✔birth, marriage, death certiifcates
wills social security info documents relating to purchase and sale of real estate
3 components of successful planning - Correct answers✔specified values, explicitly state goals,
consistent strategies
Balance Sheet - Correct answers✔A financial statement that reports assets, liabilities, and
owner's equity (net worth) on a specific date.
