FIN 300 EXAM QUESTIONS AND
ANSWERS ALL CORRECT
Becky graduated with a master degree in Personal Financial Planning. After working
two years in a small financial planning firm, Becky earns $60,000 annually and saves
$10,000 a year. What is her average propensity to consume?
a. 83.3%
b. 75.7%
c. 16.7%
d. 25.5%
e. 95.5% - Answer- a
When investing, you should try to time the market [to buy when it's low | to sell when it's
high]. - Answer- c
A person making $35,000 and spending $30,800 has an average propensity to
consume of 80%.
a. True b. False - Answer- false
Inflation generally has little effect on personal financial planning.
a. True b. False - Answer- false
As the rate of inflation increases,
a. pay checks decrease.
b. interest rates decrease.
c. the cost of living goes down.
d. purchasing power of a dollar increases.
e. retirement plans have more difficulty meeting their goals. - Answer- d
Businesses provide
a. stores.
b. labor.
c. money payments.
d. land and capital.
e. goods and services. - Answer- e
Decreasing taxes stimulates the economy.
a. True b. False - Answer- a
Saving $3,000 for a large, flat-screen TV within the next 3 years is an example of a
short-term goal.
a. True b. False - Answer- false
, About 65% of Americans believe that money is freedom.
a. True b. False - Answer- false
Your house is an example of a tangible asset.
a. True b. False - Answer- a
Average propensity to consume refers to how much of your money you plan to save in
your financial plan.
a. True b. False - Answer- false
The average [self employed | retired] household has higher income. - Answer- a
Nearly 35% of Americans say retirement planning is their most pressing financial
concern.
a. True b. False - Answer- a
The most effective way to achieve financial objectives is through financial planning.
a. True b. False - Answer- a
Typically, higher levels of education are rewarded with higher income over the lifetime.
a. True b. False - Answer- a
Wealth can be defined as the total value of all the things you own.
a. True b. False - Answer- a
A personal computer could not be used to
a. analyze investment possibilities.
b. store and retrieve financial information efficiently.
c. prepare detailed budgets.
d. keep insurance coverage inventories.
e. make financial decisions. - Answer- e
Generally, as income rises, the average propensity to consume
a. increases.
b. stabilizes.
c. drops to zero.
d. decreases.
e. becomes erratic. - Answer- d
Having numerous credit cards can [improve | hurt] your credit score. - Answer- b
Family financial goals should be
a. realistically attainable.
b. individually determined.
c. set once for a lifetime.
ANSWERS ALL CORRECT
Becky graduated with a master degree in Personal Financial Planning. After working
two years in a small financial planning firm, Becky earns $60,000 annually and saves
$10,000 a year. What is her average propensity to consume?
a. 83.3%
b. 75.7%
c. 16.7%
d. 25.5%
e. 95.5% - Answer- a
When investing, you should try to time the market [to buy when it's low | to sell when it's
high]. - Answer- c
A person making $35,000 and spending $30,800 has an average propensity to
consume of 80%.
a. True b. False - Answer- false
Inflation generally has little effect on personal financial planning.
a. True b. False - Answer- false
As the rate of inflation increases,
a. pay checks decrease.
b. interest rates decrease.
c. the cost of living goes down.
d. purchasing power of a dollar increases.
e. retirement plans have more difficulty meeting their goals. - Answer- d
Businesses provide
a. stores.
b. labor.
c. money payments.
d. land and capital.
e. goods and services. - Answer- e
Decreasing taxes stimulates the economy.
a. True b. False - Answer- a
Saving $3,000 for a large, flat-screen TV within the next 3 years is an example of a
short-term goal.
a. True b. False - Answer- false
, About 65% of Americans believe that money is freedom.
a. True b. False - Answer- false
Your house is an example of a tangible asset.
a. True b. False - Answer- a
Average propensity to consume refers to how much of your money you plan to save in
your financial plan.
a. True b. False - Answer- false
The average [self employed | retired] household has higher income. - Answer- a
Nearly 35% of Americans say retirement planning is their most pressing financial
concern.
a. True b. False - Answer- a
The most effective way to achieve financial objectives is through financial planning.
a. True b. False - Answer- a
Typically, higher levels of education are rewarded with higher income over the lifetime.
a. True b. False - Answer- a
Wealth can be defined as the total value of all the things you own.
a. True b. False - Answer- a
A personal computer could not be used to
a. analyze investment possibilities.
b. store and retrieve financial information efficiently.
c. prepare detailed budgets.
d. keep insurance coverage inventories.
e. make financial decisions. - Answer- e
Generally, as income rises, the average propensity to consume
a. increases.
b. stabilizes.
c. drops to zero.
d. decreases.
e. becomes erratic. - Answer- d
Having numerous credit cards can [improve | hurt] your credit score. - Answer- b
Family financial goals should be
a. realistically attainable.
b. individually determined.
c. set once for a lifetime.
