ECO EXAM 1-2 QUESTIONS AND ANSWERS
Why is it important to monitor and revise your financial plan on a regular basis?
Your financial position changes over time as does your personal, job, and family situation.
As you get older you will want to lower your goals.
So that you remember the goals you were striving for.
You may decide enjoying consumption now is more important than saving for retirement years. -
CORRECT ANSWER✅✅Your financial position changes over time as does your personal, job, and family
situation.
One of the six components of your financial plan should be maximizing your tax liability. - CORRECT
ANSWER✅✅false
Investing in your human capital is the second-best investment you can make. Investing in your house is
the best investment. - CORRECT ANSWER✅✅false
Obtaining a graduate degree will always improve your personal financial position. - CORRECT
ANSWER✅✅false
Which of the following federal student loan requires financial need to be demonstrated for eligibility?
Direct unsubsidized
Indirect unsubsidized
Direct subsidized
William D. Ford Direct Plus - CORRECT ANSWER✅✅Direct subsidized
For a federal direct subsidized student loan, eligibility is not based on financial need, but a credit check is
required. - CORRECT ANSWER✅✅false
Federal direct unsubsidized student loans are made to eligible undergraduate, graduate, and
professional students, but eligibility is not based on financial need. - CORRECT ANSWER✅✅true
, Interest rates could change due to all of the following except
United Nations resolution to change the U.S. Treasury rate.
shift in savings by investors.
shift in monetary policy of the Fed.
shift in business demand for funds. - CORRECT ANSWER✅✅United Nations resolution to change the
U.S. Treasury rate.
A risk premium is the amount of interest you might receive over and above the risk-free return insured
by the federal government. - CORRECT ANSWER✅✅true
The time value of money refers to
personal opportunity costs such as time lost on an activity.
financial decisions that require borrowing funds from a bank.
changes in interest rates due to changes in the supply and demand for money in the national economy.
the difference in the value of money depending on when it is received. - CORRECT ANSWER✅✅the
difference in the value of money depending on when it is received.
An annuity is a stream of equal payments that are received or paid at random periods of time. -
CORRECT ANSWER✅✅false
The higher the interest rate used in determining a future value,
the smaller the future value at the end of the period.
the greater the future value at the end of the period.
the greater the present value at the beginning of the period.
none of these—the interest rate has no effect on the future value. - CORRECT ANSWER✅✅the greater
the future value at the end of the period.
The higher the interest rate used in determining a future value, the greater the future value at the end
of the period. - CORRECT ANSWER✅✅true
Why is it important to monitor and revise your financial plan on a regular basis?
Your financial position changes over time as does your personal, job, and family situation.
As you get older you will want to lower your goals.
So that you remember the goals you were striving for.
You may decide enjoying consumption now is more important than saving for retirement years. -
CORRECT ANSWER✅✅Your financial position changes over time as does your personal, job, and family
situation.
One of the six components of your financial plan should be maximizing your tax liability. - CORRECT
ANSWER✅✅false
Investing in your human capital is the second-best investment you can make. Investing in your house is
the best investment. - CORRECT ANSWER✅✅false
Obtaining a graduate degree will always improve your personal financial position. - CORRECT
ANSWER✅✅false
Which of the following federal student loan requires financial need to be demonstrated for eligibility?
Direct unsubsidized
Indirect unsubsidized
Direct subsidized
William D. Ford Direct Plus - CORRECT ANSWER✅✅Direct subsidized
For a federal direct subsidized student loan, eligibility is not based on financial need, but a credit check is
required. - CORRECT ANSWER✅✅false
Federal direct unsubsidized student loans are made to eligible undergraduate, graduate, and
professional students, but eligibility is not based on financial need. - CORRECT ANSWER✅✅true
, Interest rates could change due to all of the following except
United Nations resolution to change the U.S. Treasury rate.
shift in savings by investors.
shift in monetary policy of the Fed.
shift in business demand for funds. - CORRECT ANSWER✅✅United Nations resolution to change the
U.S. Treasury rate.
A risk premium is the amount of interest you might receive over and above the risk-free return insured
by the federal government. - CORRECT ANSWER✅✅true
The time value of money refers to
personal opportunity costs such as time lost on an activity.
financial decisions that require borrowing funds from a bank.
changes in interest rates due to changes in the supply and demand for money in the national economy.
the difference in the value of money depending on when it is received. - CORRECT ANSWER✅✅the
difference in the value of money depending on when it is received.
An annuity is a stream of equal payments that are received or paid at random periods of time. -
CORRECT ANSWER✅✅false
The higher the interest rate used in determining a future value,
the smaller the future value at the end of the period.
the greater the future value at the end of the period.
the greater the present value at the beginning of the period.
none of these—the interest rate has no effect on the future value. - CORRECT ANSWER✅✅the greater
the future value at the end of the period.
The higher the interest rate used in determining a future value, the greater the future value at the end
of the period. - CORRECT ANSWER✅✅true
