What are examples of deposit-type financial institutions? A college student who, because of ownership of property, is able to itemize deductions rather c. a young, entry-level worker with no dependents and income only from salary. In 2012, she sells the stock for $35,000. Personal Financial Goals. Which of the following tables should she use? Search. 1. to report your current financial position in relation to the value of the items you own and the amount you owe. Quickly memorize the terms, phrases and much more. A Junior in college get a job to start saving some money. Many individuals tend to ________ their cash inflows and ________ their outflows. Which of the following tables should she use? Which of the following decisions would involve the use of the future value of a $1 ordinary annuity table? What action should Allison take? Jessie has $4,000 in a bank account, $2,800 in a 401(k) plan at work, a car with a current value of $28,000, and a house that she purchased for $92,000 that has a current value of $118,000. Darlene Elkin has the following financial amounts: checking accounts $850, savings account $3,500, credit card balance $300, jewelry $1,600, real estate valued at $78,000, and a mortgage on the real estate of $23,000. 4. Her expenses are $400 per month rent on her apartment, $100 per month for food, and $100 per month for utilities. Susie wants to know how much she needs to save today to have $5,000 in five years. Budgeting helps set goals by estimating ________ on a monthly basis to determine how much to save and spend. Present and future values concepts are applied to which of the following decisions except. Your financial position is highly influenced by all of the following except. The current balance of her home mortgage is $81,000, she has one credit card with a $3,000 balance, and a school loan with a balance of $6,000. Jakob received a $1,000 a year raise in January, sold stocks in March for $6,000 that were originally purchased for $4,000, and in July had a $100 monthly increase in mortgage payments on an adjustable rate mortgage. The financial crisis of 2008-09 affected the financial position of individuals in all of the following ways except which of these? Which of the following would be a long-term goal? they provide a basis for you budget by allowing you to estimate future spending and saving and to form realistic financial goals. Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to technology What is Jessie's current net worth? What are the benefits of an organized system of financial records and documents? Which of the following Web sites should you question the accuracy of the information provided? Comprehensive is a separate coverage from collision. Study Flashcards On CFP Exam Prep Cards - Section 1 - General Principles of Financial Planning at Cram.com. The process of obtaining ________ values is referred to as discounting. jewelry, furs, boats, expensive electronic, animals. Future and present values are dependent upon all of the following except, If you are presented with an offer to accept payment now or a greater amount in the future, you would use (assuming you can invest the money at a known rate), As the time period until receipt increases, the present value of an amount at a fixed interest rate. Josh currently earns $18.50 per hour. The time value of money implies that a dollar received today is worth ________ a dollar received tomorrow. Bills that are to be paid off within a year are called, Liabilities include all of the following except, Student loans, car loans, and housing loans are good examples of, The difference between assets and liabilities is called, Another term for your wealth calculated by deducting money that you owe from the value of the things you own is. Which of the following is not a cash inflow? how do changing economic conditions affect the use of financial services? actual cash value is where the insured person receives compensation based on the current cost of damage or lost item, 5 factors affect home owners insurance cost, 1. bodily injury liability insurance for an accident you were not responsible for, Automotive liability coverage is usually expressed by three numbers. Personal Financial planning quiz on credit and basics of financial planning More Financial Management Quizzes Financial Management Quiz: Objectives And Functions! What table would you use to calculate the value of this contract in today's dollars? compounding as it applies to a lump sum or single money amount, compounding as it applies to periodic deposits--stream of equal payments that are recieved/paid at equal intervals in time. a. Which of the following is not one of these special adjustments? chapter 3: taxes in your financial plans ; chapter 2: using financial statements; exam_1 (quizzes and terms for ch 1,2,3,4,6) chapter 4: the role of cash management in personal financial planning; chapter 2: using financial statements and budgets For each of the following, indicate if the item is a tax deduction or a tax credit. To compute how much you would need to save each year for the next 25 years to allow you to withdraw $20,000 for the following 30 years, you would need to use the, To determine how much you would need to save each year to reach a specific goal, you would use. Jerry is divorced and has two children that live with him. Bill's annual savings rate is 9%. Interest earned on municipal bonds b. collision coverage comes into play because a driver gets into a car accident. Jerry wants to know how much he needs to save every year to accumulate $15,000 in five years at a 10% interest rate. ________ allows access to funds to cover any short-term cash deficiencies. To determine how long it would take an investment to double at 10 percent, you could scan down the 10% column until you reach a factor of approximately 2.0 on the ________ table. 2. changing interest rates, rising consumer prices and other economic factors. Yogi Berra Jr. has agreed to play for the New York Mets for $4 million per year for the next 10 years. Gross income and adjusted gross income can be the same if you do not have any special adjustments. Your ability to access funds to cover any short-term cash deficiencies is your ________. From a financial standpoint when should a person start retirement planning and saving? The higher the rate used in determining the future value of an annuity. A(n) ________ is a forecast of your future cash inflows and outflows. The Personal Financial Planning project requires all but the following item: A. If your current debt to asset ratio is 50%, which of the following will increase it? what are the four methods of managing risks? If Bill wants to increase his savings rate by 2% and he currently saves $6,750, how much additional savings will Bill need to contribute to achieve his savings goal of 11%? tax exempt is not subject to tax and will never be taxed. All of the following affect cash outflows except, If both a husband and wife are employed, their consumption behavior will, Cash flow can be increased by all of the following except. Which of the following decisions would involve the use of the present value of a $1 ordinary annuity table? Which of the following could save a smaller proportion of their earnings to achieve the same level of wealth? Which of the following is not an appropriate approach to solving the problem of an annual budget deficit? Financial Write. High School Course. What is he solving for using his financial calculator? Which of the following is not subject to immediate taxation? Which one of the following is a liquid asset? Recommend three financial goals and related activities for someone in each of the following circumstances: a. The concept of time value of money is important to financial decision making because. Which of the following usually affects cash inflows the most? The state lottery has just informed you that you have won $1 million to be paid out in the amount of $50,000 per year for the next 20 years. personal- age, magital status, number and age of household members, employment situation. b. Quickly memorize the terms, phrases and much more. Nancy also has student loans on which she makes monthly payments of $200. LIST THE SIZ COMPONENTS OF A FINANCIAL PLAN. rstarcat. The average tax rate is calculated by taxes paid/income earned. What financial services are available through online and mobile systems? Personal finance does not include the process of planning your, A personal financial plan specifies financial goals and describes. Test your knowledge of the financial planning process with this interactive quiz. The increased mortgage payment was in effect the remainder of the year. STUDY. Purchasing which of the following items on credit will help reduce your tax bill? Most investments are subject to ________, which is the uncertainty surrounding their potential return. Spell. With a discount rate of 12%, what is the present value of your winnings? Paying off a credit card with cash will have which of the following effects on net worth? what relationship exists among personal financial statements, budgeting, and achieving personal financial goals? What filing status should Jerry claim on his tax return? Learn vocabulary, terms, and more with flashcards, games, and other study tools. What is his cash inflow this month? Answers to End-of-Chapter Review Questions 1. George is 65 years old. Determining taxes requires you to address all of the following topics except. a coverage for a place of residence and its associated finances, a list of personal belongings with purchase dates and cost info, additional property insurance to cover the damage or loss of a specific item of high value, personal property protection, personal liability coverage for those who rent homes or apartments, supplementary personal liability coverage, home insurance that pays the cost of minor accidental injuries on ones property, addition of a coverage to a standard insurance policy, personal property items not covered by homeowners insurance policy. Which of the following is not a step in developing a financial plan? Study Flashcards On Personal Finance Exam 2 at Cram.com. If you take money out of your savings account to pay off a credit card your liquidity ratio will, If you sell stock from your portfolio to pay off your car loan, your debt ratio of 0.5 will, Margaret has $5,000 in her checking account, a home with a market value of $175,000, and stocks valued at $10,000. What is the difference between your marginal tax rate and your average tax rate? Which of the following is not a cash outflow? Which of the following is not a tax credit mentioned in the chapter? If you prepare a document that shows your cash inflows and cash outflows it is called a(n) ________. During 2012, she did not remarry and continued to maintain her home in which her three dependent children lived. Which of the following gross income is not taxable income? The highest tax rate a taxpayer is charged on his or her federal tax return is called the ________ rate. using itemized deductions, using property taxes on your home, interest on a mortgage as an itemized deduction, retirement plans, IRA's, state taxes ect. If he has a 15% marginal tax rate and the contribution is tax deductible, Jake will, For qualified individuals, a contribution to a traditional IRA (Individual Retirement Account) is a(n), Reductions of gross income for such items as individual retirement accounts (IRAs), moving expenses, and student loan interest payments will result in, The standard deduction (assuming you are not over 65 or blind) is largest for, The filing status that yields the largest standard deduction per taxpayer is. Which of the following decisions would involve the use of the future value of $1? Online Quiz #1: Chapter 1 — Understanding the Financial Planning Process ACE 240 Online MULTIPLE CHOICE: CHOOSE THE BEST ANSWER 1. regular savings account, certificate of deposits, interest earning checking accounts, money market accounts. It helps cover different types of losses that are usually not the result of driving the vehicle, such as theft, hail or fallen trees. A cash flow statement that is based on forecasted cash flows for a future time period is called a(n). savings, payment services, borrowing, other financial services (insurance protections, investments, loans). The process of obtaining ________ values is referred to as compounding. His employer contributes 10% of Josh's gross earnings to a 401(k). Cram.com makes it easy to … Test your understanding about personal finance planning with this quiz and worksheet. In preparation of her 2012 tax return, Stephanie should file as, All reportable income from any source is called, Gross income includes all of the following except. View Test Prep - Personal Finance Test Bank Chapter 1-6 from FINANCE 401 at Bloomsburg University. Corporations issue stocks for all of the following reasons except. Taxpayers who are blind get the benefit of, When taxable income exceeds certain levels, the itemized deductions and exemptions, Legal methods of reducing your taxes include all of the following except. ________ management involves decisions regarding how much credit you need to support spending and which sources of credit to use. If the class meets 16 times, what is Josh's total opportunity cost for the class? Learn vocabulary, terms, and more with flashcards, games, and other study tools. ________ are specific expenses instead of a standard amount that reduce adjusted gross income. aka net worth statement reports what you own and what you owe and the difference between those two. Sandy wants to know how much she needs to save today to have $5,000 in five years at a 7% interest rate. Learn vocabulary, terms, and more with flashcards, games, and other study tools. balance sheet and cashflow statement provide info about your current financial situation. PLAY. a. The concept of time value of money is based on. what does personal balance sheet tell you about your financial situation? Activity: What Is Personal Finance? She could, The current financial position of an individual or family is best presented with the use of a, Your current liquidity ratio is 2.0. If you own stock that has increased in price, it would be best to sell it after you have owned it for at least. A budget will not do which of the following? How much interest will he earn on his investment during this time period? Personal Finance Planning Process Chapter Exam Take this practice test to check your existing knowledge of the course material. The difference between an ordinary annuity and an annuity due is with an annuity due the payments occur at the ________ of each period. When would you use the standard deduction instead of itemized deductions? If you have a cash deficiency this month, which of the following is the least desirable source from which you may obtain the necessary funds. Cash flows are affected by financial planning decisions. car insurance 50/200/75 what do these numbers mean? The concept that a dollar received today has more value than a dollar received in the future because of the interest it can earn is called the ________. In order to take advantage of the time value of money you should do all of the following except. commercial banks- offers full range of financial services, a. commonly used by people without a bank account. Which of the following statements is not true regarding education and financial position? Which of the following is not taxable for income tax purposes? How does the money market account differ from a money market fund? Which of the following is not a liquid asset? filing status is affected by martial status and dependents, it affects the amount of taxes you owe and the tax forms that you can use. By establishing high and unrealistic financial goals, you will probably, Goals with a time frame of between one and five years are classified as. The interest rate she expects to earn on her investment is 9%. Margaret's liquidity ratio is, Nancy has $40,000 of annual disposable income and saves $8,000 a year. After your financial plan is developed it should be, The primary goal of financial planning is to, The personal cash flow statement measures, The cash flow statement reports a person's or family's, Creating a cash flow statement requires that you determine. Jeff has a $1,000 salary and a $100 dividend income this month. This month Jim has rent and utilities of $300 and he spent $200 on groceries and $100 on clothing. How does inflation and taxes affect earnings on savings? Which of the following would not help protect you from unethical or incompetent advice from a financial adviser? A person's net worth would increase as a result of, The net worth of an individual or family can be increased by, The best measure of a person's or family's wealth is, If your cash outflows are $600 and your cash inflows are $1,000, you can increase your net worth by. keeping it the same, expanding on the current situation, changing the situation, or an entirely new course of action. If your income exceeds the amount you spend, you should ________ your investments or ________ loans. What are the main sources available to help people prepare their taxes? During the past year, Fritz spent $3,000 to take a cruise, bought stock costing $5,000 that by year-end had increased to $6,000, and paid off a credit card of $3,500. Gravity. Allison expects her monthly cash inflow after taxes to be $3000. In 2012, self-employed individuals pay FICA taxes at a rate of. ) The tax method that uses the principle of taxing those more who earn more is called ________ taxation. Which of the following is an example of an opportunity cost? To save for her newborn son's college education, Kelli Peterson will invest $1,500 at the end of each year for the next 18 years. Start studying Personal Financial Planning Exam 1. Michael's filing status is, Stephanie, who was divorced in 2012, had filed a joint tax return with her husband in 2011. Terms in this set (60) How do personal and economic factors affect the operation of the financial system and personal financial decisions? Study Personal Finance Test 1 (ch 1-4) Flashcards at ProProfs - personal fina nce test All of the following are types of nontaxable income except. Which tax form is generally used by taxpayers whose filing status is married, has no dependents, and whose taxable income if less than $100,000? She also has the following monthly expenses: Rent, $750; student loan payment, $200; utilities, $150; food, $300; recreation, $600; car expenses, $200; clothing, $150. PLAY. Good spelling, grammar, thoughtful analysis B. ________ is the process of forecasting future expenses and savings. Which of the following is not an example of a future value? Which of the following is not a legitimate itemized deduction? Your financial plan is usually strongly influenced by, Since career choices affect your income, you should choose one. Which of the following statements about stocks is not true? The accumulation of interest over time is called. A plan for ________ is needed to determine how much you could afford to borrow, the length of the loan, and to select a loan that charges competitive interest rates. A worker making $20 per hour decides to take unpaid leave from work to attend a graduation ceremony. Which item below cannot be taken as an itemized deduction? 1. handline daily business activities such as paying bills. What are long-term effects of low savings for both individuals and the economy of a country? Since about the first $10,000 you earn is tax free and each additional several thousand dollars earned are taxed at increasingly higher rates, the average tax bracket is lower than the marginal tax bracket. Study 32 Personal Financial Management Exam 1 flashcards from Hannah C. on StudyBlue. Which of the following taxes is only paid on the first $110,100 of your salary? Economics and Personal Finance Final Exam - Quizlet Welcome to Edge-Answers, a site for getting through Edgenuity as fast as possible. The budgeting process consists of seven steps: (1) set financial goals; (2) estimate income; (3) budget an emergency fund and savings; (4) budget fixed expenses; (5) budget variable expenses; (6) record spending amounts; and (7) review spending and saving patterns. He supports his father who is 90 years old, blind, and has no income. Learn. Tired of Keeping Up with the Joneses? Which of the following would not be considered a very good investment? When you own a house as a primary residence. Which statement is true? Nancy is paid $2,000 biweekly (26 pays per year) in her job as a market researcher. Cash flows are affected by financial planning decisions. 1. Standard of Living. Created by students for students, Edge-Answers is a sharing tool we use to help each other to pass the Edgenuity and E2020 quizzes and tests. 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