FIN250
Personal Financial Planning
Finals Exam(Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following financial instruments is primarily used
for retirement savings and offers tax advantages in the United
States?
- A) Savings Account
- B) IRA (Individual Retirement Account)
- C) Corporate Bond
- D) Mutual Fund
- Correct ANS : B) IRA
- Rationale : IRAs provide individuals with tax benefits for
retirement savings, unlike general savings accounts.
2. What is the primary purpose of estate planning?
- A) To avoid taxes during retirement
- B) To ensure the efficient transfer of assets upon death
- C) To select the best savings account
- D) To maximize investment returns
- Correct ANS : B) To ensure the efficient transfer of assets
upon death
- Rationale : Estate planning involves arranging for the
disposal of an individual’s estate to ensure wishes are honored
efficiently.
©2024/2025
, 3. In the context of investment strategies, what does the term
'diversification' refer to?
- A) Investing only in stocks
- B) Spreading investments across various asset classes to
reduce risk
- C) Focusing investment solely on historical performance
- D) Concentrating assets in a single investment
- Correct ANS : B) Spreading investments across various
asset classes to reduce risk
- Rationale : Diversification aims to reduce risk by mixing a
wide variety of investments within a portfolio.
4. Which of the following scenarios best describes the "time
value of money"?
- A) A dollar today is worth less than a dollar in the future
- B) A dollar today is worth more than a dollar in the future
- C) Inflation has no effect on investment returns
- D) Savings accounts always yield positive returns
- Correct ANS : B) A dollar today is worth more than a dollar
in the future
©2024/2025
Personal Financial Planning
Finals Exam(Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following financial instruments is primarily used
for retirement savings and offers tax advantages in the United
States?
- A) Savings Account
- B) IRA (Individual Retirement Account)
- C) Corporate Bond
- D) Mutual Fund
- Correct ANS : B) IRA
- Rationale : IRAs provide individuals with tax benefits for
retirement savings, unlike general savings accounts.
2. What is the primary purpose of estate planning?
- A) To avoid taxes during retirement
- B) To ensure the efficient transfer of assets upon death
- C) To select the best savings account
- D) To maximize investment returns
- Correct ANS : B) To ensure the efficient transfer of assets
upon death
- Rationale : Estate planning involves arranging for the
disposal of an individual’s estate to ensure wishes are honored
efficiently.
©2024/2025
, 3. In the context of investment strategies, what does the term
'diversification' refer to?
- A) Investing only in stocks
- B) Spreading investments across various asset classes to
reduce risk
- C) Focusing investment solely on historical performance
- D) Concentrating assets in a single investment
- Correct ANS : B) Spreading investments across various
asset classes to reduce risk
- Rationale : Diversification aims to reduce risk by mixing a
wide variety of investments within a portfolio.
4. Which of the following scenarios best describes the "time
value of money"?
- A) A dollar today is worth less than a dollar in the future
- B) A dollar today is worth more than a dollar in the future
- C) Inflation has no effect on investment returns
- D) Savings accounts always yield positive returns
- Correct ANS : B) A dollar today is worth more than a dollar
in the future
©2024/2025
