PERSONAL FINANCIAL PLANNING -
EXAM 1 – WILEY QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT (GRADED A+) NEWLY
UPDATED 2025
a charge made on your credit card becomes a liability as soon as the charge is
incurred.
True of False - ANSWER✔✔ True
Current Consumption effects future consumption.
True of False - ANSWER✔✔ True
Inflation means price levels have declined.
True or False - ANSWER✔✔ True
Financial planning is a continuing, life-long process.
True or False. - ANSWER✔✔ True
How long you invest is not nearly as important as the rate of interest you can earn
on your investments.
True or False. - ANSWER✔✔ False
Businesses are key part of the circular flow of income that sustains our free
enterprise system.
True or False. - ANSWER✔✔ True
, Money is:
a. a median of consumption.
b. the purpose of our economy
c. the reason for all transactions.
d. a medium of exchange.
e. a measure of propensity to consume. - ANSWER✔✔ d. a medium of exchange
Family financial goals should be:
a. very general in nature.
b. individually determined.
c. set once for a lifetime.
d. realistically attainable.
e. reserved for retirement planning. - ANSWER✔✔ d. realistically attainable
The last step in the financial planning process is to:
a. use financial statements to evaluate results of plans and budgets, taking
corrective action as required.
b. redefine goals and revise plans and strategies as personal circumstances change.
c. implement financial plans and strategies.
d. develop financial plans and strategies to achieve goals.
EXAM 1 – WILEY QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT (GRADED A+) NEWLY
UPDATED 2025
a charge made on your credit card becomes a liability as soon as the charge is
incurred.
True of False - ANSWER✔✔ True
Current Consumption effects future consumption.
True of False - ANSWER✔✔ True
Inflation means price levels have declined.
True or False - ANSWER✔✔ True
Financial planning is a continuing, life-long process.
True or False. - ANSWER✔✔ True
How long you invest is not nearly as important as the rate of interest you can earn
on your investments.
True or False. - ANSWER✔✔ False
Businesses are key part of the circular flow of income that sustains our free
enterprise system.
True or False. - ANSWER✔✔ True
, Money is:
a. a median of consumption.
b. the purpose of our economy
c. the reason for all transactions.
d. a medium of exchange.
e. a measure of propensity to consume. - ANSWER✔✔ d. a medium of exchange
Family financial goals should be:
a. very general in nature.
b. individually determined.
c. set once for a lifetime.
d. realistically attainable.
e. reserved for retirement planning. - ANSWER✔✔ d. realistically attainable
The last step in the financial planning process is to:
a. use financial statements to evaluate results of plans and budgets, taking
corrective action as required.
b. redefine goals and revise plans and strategies as personal circumstances change.
c. implement financial plans and strategies.
d. develop financial plans and strategies to achieve goals.
