FIR Module 1 with all Correct & 100% Verified Answers
|Actual Complete Exam |Already Graded A+
Employee Benefits ✔Correct Answer-compensation other than wages, salaries, and incentive
programs
Utility ✔Correct Answer-satisfaction, usefulness, or value one obtains from consuming goods and
services
standard of living ✔Correct Answer-the faucet of an individual's quality of life refers to his level of
wealth, physical and pschological comfort, material goods, necessities
Purchasing power ✔Correct Answer-value of money by describing amount of goods and services
each dollar buys at given time. Deflation tends to increase value
financial planner ✔Correct Answer-a specialist who is trained to offer specific financial help and
advice
average propensity to consume ✔Correct Answer-the percentage of each dollar of income, on
average, that a person spends for current needs rather than savings
business cycle ✔Correct Answer-, or economic cycle, is the irregularly occurring wavelike pattern of
economic activity, generally depicted as an undulating wave of expansions, peaks, contractions, and
troughs.
Asset acquition planning ✔Correct Answer-one of the earliest financial activities you undertake in
life. It involves the purchase ofthings we own , including tangible and financial assets, liquid assets,
investments, and personal and real property.
Financial assets are __________________________ and are held either to consume and use or to
generate a return or income as an investment. An example of an intangible asset is
______________________ . ✔Correct Answer-return-earning assets
stocks or bonds
In general, the cost and value of your tangible, personal, and real assets tend to
______________________ with your age, income, and wealth, all other things remaining constant.
The value of your financial and liquid assets, on the other hand, tends to be a function of economic
conditions and your investment returns. ✔Correct Answer-increase
Liability acquisition planning ✔Correct Answer-addresses how you are going to pay for your asset
purchases using liabilities, orborrowed money.
The_________________ of liabilities is that, by law, the money_____________________ ✔Correct
Answer-disadvantage, repaid
In general, your borrowing needs tend to ______________ as you acquire additional and/or more
expensive assets. ✔Correct Answer-increase
, Insurance planning, on the other hand, provides a way of _____________ your financial risks and
__________________ your income and assets. Improper insurance planning can be expensive and
can lead to unprotected possessions. ✔Correct Answer-reducing
protecting
One of the first savings accumulations recommended by financial advisors is __________________ ,
which should contain _________________ months' worth of income. ✔Correct Answer-an
emergency fund
three to six
The purpose of most long-term savings activity is to accumulate funds for
________________________. ✔Correct Answer-important and expensive expenditures and
retirement .
In general, it is desirable to _________ the return earned on your invested funds (assuming you are
not significantly increasing risk), to earn __________________ interest on your funds, and to
______________ the fees associated with the accounts. ✔Correct Answer-increase
compoud
reduce
Elijah graduated from college this past May and is considering the purchase of a new car. He's
considering either a used VW Jetta or a new Toyota Corolla. This is an example of
_________________. ✔Correct Answer-asset aquition planning
After receiving a raise at work, Claire is trying to decide whether to invest the new funds into a
savings account or to purchase additional shares of stock in Apple Inc. This is an example of
✔Correct Answer-Savings and investment planning
Tax planning involves evaluating your current and projected earnings and developing strategies that
can legally__________and/or____________ your tax liability. ✔Correct Answer-defer
reduce
As it is currently written, the U.S. tax code recognizes several types of taxable income, including:
✔Correct Answer-•Active, orordinary , income
•Passive income
•Portfolio, orinvestment , income
•Tax-deferred and/or tax-free income
Tax-free investments are so called because the interest or other income paid to their owners is
_______________ federal, and, perhaps, state taxes. Owners of tax-deferred investments, on the
other hand, are allowed to ___________________ paying taxes on any returns generated by the
investment. ✔Correct Answer-free of
postpone
_______________________ involves selecting, coordinating, and managing employer-provided
compensation thatdoes not take the form of cash payments, such as wages, salaries, and
commissions. ✔Correct Answer-Employee benefit planning
These benefits can include sick leave, vacation, and personal time; life, health, and disability
insurance; tuition reimbursement programs; pension, profit-sharing, and___________ retirement
|Actual Complete Exam |Already Graded A+
Employee Benefits ✔Correct Answer-compensation other than wages, salaries, and incentive
programs
Utility ✔Correct Answer-satisfaction, usefulness, or value one obtains from consuming goods and
services
standard of living ✔Correct Answer-the faucet of an individual's quality of life refers to his level of
wealth, physical and pschological comfort, material goods, necessities
Purchasing power ✔Correct Answer-value of money by describing amount of goods and services
each dollar buys at given time. Deflation tends to increase value
financial planner ✔Correct Answer-a specialist who is trained to offer specific financial help and
advice
average propensity to consume ✔Correct Answer-the percentage of each dollar of income, on
average, that a person spends for current needs rather than savings
business cycle ✔Correct Answer-, or economic cycle, is the irregularly occurring wavelike pattern of
economic activity, generally depicted as an undulating wave of expansions, peaks, contractions, and
troughs.
Asset acquition planning ✔Correct Answer-one of the earliest financial activities you undertake in
life. It involves the purchase ofthings we own , including tangible and financial assets, liquid assets,
investments, and personal and real property.
Financial assets are __________________________ and are held either to consume and use or to
generate a return or income as an investment. An example of an intangible asset is
______________________ . ✔Correct Answer-return-earning assets
stocks or bonds
In general, the cost and value of your tangible, personal, and real assets tend to
______________________ with your age, income, and wealth, all other things remaining constant.
The value of your financial and liquid assets, on the other hand, tends to be a function of economic
conditions and your investment returns. ✔Correct Answer-increase
Liability acquisition planning ✔Correct Answer-addresses how you are going to pay for your asset
purchases using liabilities, orborrowed money.
The_________________ of liabilities is that, by law, the money_____________________ ✔Correct
Answer-disadvantage, repaid
In general, your borrowing needs tend to ______________ as you acquire additional and/or more
expensive assets. ✔Correct Answer-increase
, Insurance planning, on the other hand, provides a way of _____________ your financial risks and
__________________ your income and assets. Improper insurance planning can be expensive and
can lead to unprotected possessions. ✔Correct Answer-reducing
protecting
One of the first savings accumulations recommended by financial advisors is __________________ ,
which should contain _________________ months' worth of income. ✔Correct Answer-an
emergency fund
three to six
The purpose of most long-term savings activity is to accumulate funds for
________________________. ✔Correct Answer-important and expensive expenditures and
retirement .
In general, it is desirable to _________ the return earned on your invested funds (assuming you are
not significantly increasing risk), to earn __________________ interest on your funds, and to
______________ the fees associated with the accounts. ✔Correct Answer-increase
compoud
reduce
Elijah graduated from college this past May and is considering the purchase of a new car. He's
considering either a used VW Jetta or a new Toyota Corolla. This is an example of
_________________. ✔Correct Answer-asset aquition planning
After receiving a raise at work, Claire is trying to decide whether to invest the new funds into a
savings account or to purchase additional shares of stock in Apple Inc. This is an example of
✔Correct Answer-Savings and investment planning
Tax planning involves evaluating your current and projected earnings and developing strategies that
can legally__________and/or____________ your tax liability. ✔Correct Answer-defer
reduce
As it is currently written, the U.S. tax code recognizes several types of taxable income, including:
✔Correct Answer-•Active, orordinary , income
•Passive income
•Portfolio, orinvestment , income
•Tax-deferred and/or tax-free income
Tax-free investments are so called because the interest or other income paid to their owners is
_______________ federal, and, perhaps, state taxes. Owners of tax-deferred investments, on the
other hand, are allowed to ___________________ paying taxes on any returns generated by the
investment. ✔Correct Answer-free of
postpone
_______________________ involves selecting, coordinating, and managing employer-provided
compensation thatdoes not take the form of cash payments, such as wages, salaries, and
commissions. ✔Correct Answer-Employee benefit planning
These benefits can include sick leave, vacation, and personal time; life, health, and disability
insurance; tuition reimbursement programs; pension, profit-sharing, and___________ retirement
