BUS 2204 – PERSONAL FINANCE 2
CERTIFICATION ASSESSMENT 2026 VERIFIED
ANSWERS GRADED A+
◉ Who is most likely to benefit from inflation?
A. retired people
B. lenders
C. borrowers
D. low-income consumers
E. government.
Answer: C. borrowers
◉ The Fed refers to:
A. government regulation of business.
B. Congress.
C. the Federal Reserve System.
D. the Federal Deposit Insurance Corporation..
Answer: C. the Federal Reserve System.
,◉ Some savings and investment choices have the potential for
higher earnings. However, these may also be difficult to convert to
cash when you need the funds. This problem refers to:
A. Inflation risk
B. Interest rate risk
C. Income risk
D. Liquidity Risk.
Answer: D. Liquidity Risk
◉ A question associated with the saving component of financial
planning is:
A. Do you have an adequate emergency fund?
B. Is your will current?
C. Is your investment program appropriate to your income and tax
situation?
D. Do you have a realistic budget for your current financial
situation?.
Answer: A. Do you have an adequate emergency fund?
◉ When an individual makes a purchase without considering the
financial consequences of that purchase, they are ignoring the aspect
of financial planning.
,A. Borrowing
B. Risk Management
C. Spending
D. Retirement and Estate Planning.
Answer: C. Spending
◉ As an individual plans to set aside funds for her young children's
college education, she is setting a(n) ____________ goal.
A. intermediate
B. long-term
C. short-term
D. intangible.
Answer: B. long-term
◉ The time value of money refers to:
A. personal opportunity costs such as time lost on an activity.
B. financial decisions that require borrowing funds from a financial
institution.
, C. changes in interest rates due to changes in the supply and demand
for money in our economy.
D. increases in an amount of money as a result of interest..
Answer: D. increases in an amount of money as a result of interest.
◉ The first step of the financial planning process is to:
A. develop financial goals.
B. implement the financial plan.
C. analyze your current personal and financial situation.
D. evaluate and revise your actions..
Answer: C. analyze your current personal and financial situation.
◉ The uncertainty associated with decision making is referred to as
A. opportunity cost.
B. selection of alternatives.
C. financial goals.
D. risk..
Answer: D. risk.
CERTIFICATION ASSESSMENT 2026 VERIFIED
ANSWERS GRADED A+
◉ Who is most likely to benefit from inflation?
A. retired people
B. lenders
C. borrowers
D. low-income consumers
E. government.
Answer: C. borrowers
◉ The Fed refers to:
A. government regulation of business.
B. Congress.
C. the Federal Reserve System.
D. the Federal Deposit Insurance Corporation..
Answer: C. the Federal Reserve System.
,◉ Some savings and investment choices have the potential for
higher earnings. However, these may also be difficult to convert to
cash when you need the funds. This problem refers to:
A. Inflation risk
B. Interest rate risk
C. Income risk
D. Liquidity Risk.
Answer: D. Liquidity Risk
◉ A question associated with the saving component of financial
planning is:
A. Do you have an adequate emergency fund?
B. Is your will current?
C. Is your investment program appropriate to your income and tax
situation?
D. Do you have a realistic budget for your current financial
situation?.
Answer: A. Do you have an adequate emergency fund?
◉ When an individual makes a purchase without considering the
financial consequences of that purchase, they are ignoring the aspect
of financial planning.
,A. Borrowing
B. Risk Management
C. Spending
D. Retirement and Estate Planning.
Answer: C. Spending
◉ As an individual plans to set aside funds for her young children's
college education, she is setting a(n) ____________ goal.
A. intermediate
B. long-term
C. short-term
D. intangible.
Answer: B. long-term
◉ The time value of money refers to:
A. personal opportunity costs such as time lost on an activity.
B. financial decisions that require borrowing funds from a financial
institution.
, C. changes in interest rates due to changes in the supply and demand
for money in our economy.
D. increases in an amount of money as a result of interest..
Answer: D. increases in an amount of money as a result of interest.
◉ The first step of the financial planning process is to:
A. develop financial goals.
B. implement the financial plan.
C. analyze your current personal and financial situation.
D. evaluate and revise your actions..
Answer: C. analyze your current personal and financial situation.
◉ The uncertainty associated with decision making is referred to as
A. opportunity cost.
B. selection of alternatives.
C. financial goals.
D. risk..
Answer: D. risk.
