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Multiple Choice Quiz
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1

The last step of financial planning is to review and revise your financial plan as needed.
A)True.
B)False.
2

The money supply is the amount of dollars available in our economy for spending.
A)True.
B)False.
3

Changes in interest rates affect your cost of borrowing and your return on your investments and is one of the risks you face when making financial decisions.
A)True.
B)False.
4

Prices of goods and services in our economy are determined by the government.
A)True.
B)False.
5

You need a place to live. You have determined that you can continue to rent an apartment, move in with your parents, look at buying a condominium or look at buying a house. This is an example of which step in the financial planning process?
A)Determining your current financial position
B)Developing financial goals
C)Identifying alternative courses of action
D)Evaluating alternatives
E)Creating and implementing a financial plan
6

You want to budget your money so that you can see a movie once a month. This is an example of:
A)a consumable products financial goal
B)a durable goods financial goal
C)an intangible goal
D)a long term financial goal
7

Suppose you know that you will need to $5000 in seven years. If interest rates during this time are 11%, what would you have to deposit today in order to have the amount you need in the future? (Round to the nearest $10)
A)$510
B)$1350
C)$10,380
D)$2410
8

Any financial decision that is made involves uncertainty. This uncertainty is generally known as _________.
A)Risk
B)Inflation
C)Liquidity
D)Marketability
9

_________ are the ideas and principles that a person considers correct, desirable and important. These have an influence on the financial decisions we make.
A)Personal values
B)Consumer Prices
C)Social Trends
D)Economic Trends
10

When you make a choice in financial decision making you always give something up. You generally sacrifice something to obtain something else more desirable. These trade offs are known as _________.
A)Opportunity costs
B)Risk
C)Uncertainty
D)Financial goals





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