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Multiple Choice Quiz
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1
An example of a personal opportunity cost would be:
A)The time it takes you to drive to work.
B)Sleeping only four hours a night.
C)The time spent shopping that reduces the time available for studying.
D)The fact that you work forty hours a week
E)All of the above are examples of personal opportunity costs.
2
Creating a current cash flow statement and balance sheet help with which step of 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
3
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
4
You have a two year old daughter named Chloe. You want to have enough money so you can pay for her college education when she starts college in sixteen years. You need:
A)a short term financial goal.
B)an intermediate term financial goal.
C)a long term financial goal.
D)a personal goal.
5
You want to make sure to get enough sleep every night so that you can make sure you stay healthy. 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.
6
You feel very strongly that going into debt is wrong. This is an example of the influence of __________ on your financial planning decisions.
A)your values
B)your stage in the adult life cycle
C)market forces
D)general economic forces
E)none of the above
7
According to the "Rule of 72", if the interest rate your earn is 16% your money will double in value in:
A)4.5 years.
B)6.0 years.
C)12 years.
D)16 years.
E)Cannot be determined from the above information.
8
You plan on depositing into the bank $1500 each year (at the end of the year) for the next 10 years. You will earn 5% interest per year on this account. How much will be in the account at the end? (Round to the nearest $10)
A)$2440
B)$920
C)$18,870
D)$11,580
9
__________ is a rise in the general levels of prices. Your purchasing power decreases and it will cost more money to buy the same goods.
A)Uncertainty
B)Inflation
C)Interest
D)Risk
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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