Financial Planning || Errorless Answers 100%.
Which of the following is not federally insured? correct answers Money Market Mutual Fund
Which of the following formulas is used to calculate personal net worth? correct answers Total
Assets - Total Debt
If you borrow to buy a car, which of the following items on the balance sheet are affected?
correct answers Assets and Debts
Don has assets of $10,000, of which $3,600 is in checking and savings accounts. His annual
expenses are $30,000. Don's liquidity ratio is: correct answers 1.44
When real property is used as collateral to secure a loan, which of the following does the lender
record against the property? correct answers Lien
Which of the following is not one of the steps in the personal financial planning process? correct
answers Determining the appropriate risk level of the participant
When lenders evaluate your sources of income and your expenses, they are considering your:
correct answers Capacity
Which of the following is NOT a disadvantage of renting a home? correct answers Higher Up-
front costs
All of the following dollar figures would enter into a households "gross accounting identity"
except for: correct answers Take home pay
Credit cards are example of: correct answers Open ended Credit
, You have estimated your total assets to be $11,000, your short-term liabilities to be $2,000, and
your total debts to be $10,000. Your net worth is $2,000. correct answers False
Checking and Savings accounts at commercial banks are both examples of demand deposit
accounts. correct answers True
A reserve account held by mortgage lender used to pay property taxes and insurance as they
come due is known as an Escrow Account correct answers True
Fixed Rate mortgage loans usually have lower initial interest rates than do variable/adjustable
rate loans correct answers False
Financial advisors all agree that all households should have at least 5 months' worth of after-tax
income in cash or cash-equivalent (liquid) accounts. correct answers False
Financial Planning Goals, to be effective, should have 5 properties. correct answers (SMART
Acronym)
Specific
Measurable
Achievable
Realistic
Timely
A term life insurance provision allowing the insured to continue the policy at the end of the term
without having to show evidence of insurability correct answers Renewability
The accumulated refundable value of an insurance policy (reserves) resulting from paid-in
premiums and the investment earnings on the premiums correct answers Cash Value (Life
Insurance)
Which of the following is not federally insured? correct answers Money Market Mutual Fund
Which of the following formulas is used to calculate personal net worth? correct answers Total
Assets - Total Debt
If you borrow to buy a car, which of the following items on the balance sheet are affected?
correct answers Assets and Debts
Don has assets of $10,000, of which $3,600 is in checking and savings accounts. His annual
expenses are $30,000. Don's liquidity ratio is: correct answers 1.44
When real property is used as collateral to secure a loan, which of the following does the lender
record against the property? correct answers Lien
Which of the following is not one of the steps in the personal financial planning process? correct
answers Determining the appropriate risk level of the participant
When lenders evaluate your sources of income and your expenses, they are considering your:
correct answers Capacity
Which of the following is NOT a disadvantage of renting a home? correct answers Higher Up-
front costs
All of the following dollar figures would enter into a households "gross accounting identity"
except for: correct answers Take home pay
Credit cards are example of: correct answers Open ended Credit
, You have estimated your total assets to be $11,000, your short-term liabilities to be $2,000, and
your total debts to be $10,000. Your net worth is $2,000. correct answers False
Checking and Savings accounts at commercial banks are both examples of demand deposit
accounts. correct answers True
A reserve account held by mortgage lender used to pay property taxes and insurance as they
come due is known as an Escrow Account correct answers True
Fixed Rate mortgage loans usually have lower initial interest rates than do variable/adjustable
rate loans correct answers False
Financial advisors all agree that all households should have at least 5 months' worth of after-tax
income in cash or cash-equivalent (liquid) accounts. correct answers False
Financial Planning Goals, to be effective, should have 5 properties. correct answers (SMART
Acronym)
Specific
Measurable
Achievable
Realistic
Timely
A term life insurance provision allowing the insured to continue the policy at the end of the term
without having to show evidence of insurability correct answers Renewability
The accumulated refundable value of an insurance policy (reserves) resulting from paid-in
premiums and the investment earnings on the premiums correct answers Cash Value (Life
Insurance)
