WGU D363 Preassesment Exam Questions With
Correct Answers
An |individual |wants |to |build |up |an |emergency |fund |in |a |savings |account. |Monthly |expenses |
for |this |individual |total |$4,000 |per |month, |while |monthly |income |is |$5,000.
How |much |can |be |saved |if |the |individual |wants |to |build |up |two |months' |worth |of |income |
savings?
A) |$1,000
B) |$2,000
C) |$4,000
D) |$5,000
B) |$2,000
An |individual |wants |to |make |a |large |purchase |that |will |take |two |years |to |pay |off. |The |
individual |owns |a |home, |earns |an |income |of |$75,000, |and |has |no |other |debt |aside |from |a |
$900 |mortgage |payment |with |five |years |left |at |3%. |The |individual |will |retire |within |one |year |
and |will |be |required |to |take |minimum |distributions |from |a |traditional |retirement |account.
Which |financing |option |is |appropriate |for |this |individual's |financing |objective?
A) |A |one-time |credit |card |purchase
B) |A |home |equity |line |of |credit
C) |An |early |distribution |from |retirement |accounts
D) |A |consumer |finance |company |loan
B) |A |home |equity |line |of |credit
An |individual's |net |earnings |are |$60,000 |per |year, |with |living |expenses |for |housing, |food, |and |
transportation |amounting |to |$3,200 |per |month. |The |individual |wants |to |save |$30,000 |for |a |
home |down |payment |and |plans |to |travel |once |a |year, |with |the |trip |costing |$3,000.
How |long |until |the |individual |can |fund |both |goals |for |the |same |year |if |income |and |expenses |
stay |consistent?
,A) |1 |year |and |8 |months
B) |2 |years |and |9 |months
C) |3 |years |and |2 |months
D) |3 |years |and |4 |months
A) |1 |year |and |8 |months
A |cost-sensitive |individual |utilizes |an |advisory |firm |for |financial |planning |and |investment |
management |with |a |conservative |risk |profile. |The |client |pays |$1,000 |per |year |for |a |financial |
plan |and |$100 |per |year |in |investment |product |expenses.
Which |possible |outcome |can |complicate |this |individual's |expectations |based |on |the |risk |profile
|and |needs?
A) |Firm's |allocation |projecting |a |short |investment |time |horizon
B) |Firm |recommendations |not |meeting |investment |risk |appetite
C) |Firm's |fees |exceeding |overall |investment |returns
D) |Firm's |product |offering |increasing |in |cost |annually
C) |Firm's |fees |exceeding |overall |investment |returns
Jack |is |a |freelance |technical |writer |receiving |a |1099 |form |from |every |client |paying |over |$600, |
and |Jack |earns |between |$60,000 |and |$65,000 |per |year. |Jack |also |has |increased |monthly |
expenses |to |$4,000 |per |month, |as |spending |needs |have |increased |after |Jack |quit |a |job |last |
year |that |paid |$55,000 |in |W-2 |wages.
How |should |Jack |modify |financial |planning |around |this |employment |change?
A) |Fund |an |investment |account |to |increase |money |available |for |future |tax |payments
B) |Maximize |business |deductions |and |aggregate |savings |for |higher |tax |obligations
C) |Maintain |deductible |expense |spending |to |have |the |highest |possible |tax |write-offs
D) |Make |large |cash |donations |to |charitable |causes |to |deduct |against |taxable |income
B) |Maximize |business |deductions |and |aggregate |savings |for |higher |tax |obligations
An |individual |earns |$75,000 |annually. |Monthly |rent |is |$2,200, |and |20% |of |monthly |cash |
income |is |spent |on |utilities, |groceries, |and |transportation. |To |pay |off |a |credit |card |in |six |
months, |the |client |agrees |to |monthly |payments |of |$1,650.What |is |the |monthly |debt-to-income
|ratio?
A) |25.6
, B) |26.4
C) |32.5
D) |33.2
B) |26.4
An |individual |has |monthly |expenses |of |$1,800 |for |rent |and |$1,000 |for |groceries, |
transportation, |and |other |necessary |expenses. |Which |average |return |should |the |individual |
expect |to |match |25% |of |yearly |expenses |on |a |$100,000 |investment?
A) |8.2%
B) |8.4%
C) |9.6%
D) |9.8%
B) |8.4%
A |student |is |working |part-time |while |going |to |university. |The |student |is |making |$18,000 |per |
year |and |saves |$3,000 |per |year, |as |$15,000 |of |the |student's |yearly |living |expenses |are |
currently |subsidized |by |grants. |Grant |funding |will |run |out |when |the |student |has |one |year |left |
of |schooling.
How |much |of |a |deficit |will |the |student |have |to |finance |if |the |student |saves |each |year |for |
three |years?
A) |$3,000
B) |$6,000
C) |$9,000
D) |$12,000
B) |$6,000
An |individual's |financial |goal |is |to |pay |off |debt, |including |$15,000 |with |an |APR |of |12%, |
$20,000 |with |an |APR |of |8%, |and |$15,000 |with |an |APR |of |6%.
How |should |the |individual |distribute |debt |payments?
A) |Make |at |least |minimum |payments |to |all, |with |extra |funds |towards |$15,000 |with |an |APR |of |
12%
B) |Pay |off |the |highest |amount |of |debt |of |$20,000 |with |an |APR |of |8% |first, |then |other |debts
C) |Satisfy |the |lowest |interest |debt |of |$15,000 |with |an |APR |of |6% |first |before |paying |other |
Correct Answers
An |individual |wants |to |build |up |an |emergency |fund |in |a |savings |account. |Monthly |expenses |
for |this |individual |total |$4,000 |per |month, |while |monthly |income |is |$5,000.
How |much |can |be |saved |if |the |individual |wants |to |build |up |two |months' |worth |of |income |
savings?
A) |$1,000
B) |$2,000
C) |$4,000
D) |$5,000
B) |$2,000
An |individual |wants |to |make |a |large |purchase |that |will |take |two |years |to |pay |off. |The |
individual |owns |a |home, |earns |an |income |of |$75,000, |and |has |no |other |debt |aside |from |a |
$900 |mortgage |payment |with |five |years |left |at |3%. |The |individual |will |retire |within |one |year |
and |will |be |required |to |take |minimum |distributions |from |a |traditional |retirement |account.
Which |financing |option |is |appropriate |for |this |individual's |financing |objective?
A) |A |one-time |credit |card |purchase
B) |A |home |equity |line |of |credit
C) |An |early |distribution |from |retirement |accounts
D) |A |consumer |finance |company |loan
B) |A |home |equity |line |of |credit
An |individual's |net |earnings |are |$60,000 |per |year, |with |living |expenses |for |housing, |food, |and |
transportation |amounting |to |$3,200 |per |month. |The |individual |wants |to |save |$30,000 |for |a |
home |down |payment |and |plans |to |travel |once |a |year, |with |the |trip |costing |$3,000.
How |long |until |the |individual |can |fund |both |goals |for |the |same |year |if |income |and |expenses |
stay |consistent?
,A) |1 |year |and |8 |months
B) |2 |years |and |9 |months
C) |3 |years |and |2 |months
D) |3 |years |and |4 |months
A) |1 |year |and |8 |months
A |cost-sensitive |individual |utilizes |an |advisory |firm |for |financial |planning |and |investment |
management |with |a |conservative |risk |profile. |The |client |pays |$1,000 |per |year |for |a |financial |
plan |and |$100 |per |year |in |investment |product |expenses.
Which |possible |outcome |can |complicate |this |individual's |expectations |based |on |the |risk |profile
|and |needs?
A) |Firm's |allocation |projecting |a |short |investment |time |horizon
B) |Firm |recommendations |not |meeting |investment |risk |appetite
C) |Firm's |fees |exceeding |overall |investment |returns
D) |Firm's |product |offering |increasing |in |cost |annually
C) |Firm's |fees |exceeding |overall |investment |returns
Jack |is |a |freelance |technical |writer |receiving |a |1099 |form |from |every |client |paying |over |$600, |
and |Jack |earns |between |$60,000 |and |$65,000 |per |year. |Jack |also |has |increased |monthly |
expenses |to |$4,000 |per |month, |as |spending |needs |have |increased |after |Jack |quit |a |job |last |
year |that |paid |$55,000 |in |W-2 |wages.
How |should |Jack |modify |financial |planning |around |this |employment |change?
A) |Fund |an |investment |account |to |increase |money |available |for |future |tax |payments
B) |Maximize |business |deductions |and |aggregate |savings |for |higher |tax |obligations
C) |Maintain |deductible |expense |spending |to |have |the |highest |possible |tax |write-offs
D) |Make |large |cash |donations |to |charitable |causes |to |deduct |against |taxable |income
B) |Maximize |business |deductions |and |aggregate |savings |for |higher |tax |obligations
An |individual |earns |$75,000 |annually. |Monthly |rent |is |$2,200, |and |20% |of |monthly |cash |
income |is |spent |on |utilities, |groceries, |and |transportation. |To |pay |off |a |credit |card |in |six |
months, |the |client |agrees |to |monthly |payments |of |$1,650.What |is |the |monthly |debt-to-income
|ratio?
A) |25.6
, B) |26.4
C) |32.5
D) |33.2
B) |26.4
An |individual |has |monthly |expenses |of |$1,800 |for |rent |and |$1,000 |for |groceries, |
transportation, |and |other |necessary |expenses. |Which |average |return |should |the |individual |
expect |to |match |25% |of |yearly |expenses |on |a |$100,000 |investment?
A) |8.2%
B) |8.4%
C) |9.6%
D) |9.8%
B) |8.4%
A |student |is |working |part-time |while |going |to |university. |The |student |is |making |$18,000 |per |
year |and |saves |$3,000 |per |year, |as |$15,000 |of |the |student's |yearly |living |expenses |are |
currently |subsidized |by |grants. |Grant |funding |will |run |out |when |the |student |has |one |year |left |
of |schooling.
How |much |of |a |deficit |will |the |student |have |to |finance |if |the |student |saves |each |year |for |
three |years?
A) |$3,000
B) |$6,000
C) |$9,000
D) |$12,000
B) |$6,000
An |individual's |financial |goal |is |to |pay |off |debt, |including |$15,000 |with |an |APR |of |12%, |
$20,000 |with |an |APR |of |8%, |and |$15,000 |with |an |APR |of |6%.
How |should |the |individual |distribute |debt |payments?
A) |Make |at |least |minimum |payments |to |all, |with |extra |funds |towards |$15,000 |with |an |APR |of |
12%
B) |Pay |off |the |highest |amount |of |debt |of |$20,000 |with |an |APR |of |8% |first, |then |other |debts
C) |Satisfy |the |lowest |interest |debt |of |$15,000 |with |an |APR |of |6% |first |before |paying |other |
