Personal finance multiple choice questions

Reference no: EM1352952

1) Money received today is worth more than the same amount of money received in the future. This is true because
a)Money received today can grow at a compounded rate
b)Future inflation will devalue your current investment
c)All goods and services are likely to cost more in the future
d)Unique investment opportunities exist today, which may not be available in the future

2) The time value of money implies that a dollar received today is worth a dollar received tomorrow
a)More than
b)Less than
c)The same as
d)Insufficient data to answer

3) Which of the following is not a cash inflow?
a)Interest received
b)Dividend income
c)Car payment
d)Salary

4) Jim has $1,000 income from his job and $200 stock dividend income this month. This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing. What is his cash inflow this month?
a)$1,200
b)$400
c)$600
d)$500

5) Many individuals tend to their cash inflows and their outflows
a)Underestimate; overestimate
b)Overestimate; underestimate
c)Minimize; maximize
d)Not know; accurately know

6) Which of the following usually affects cash inflows the most?
a)The education and income of your parents
b)Your job skills
c)Your personal consumption behavior
d)The size of your family

7) In budgeting, it is useful to compare with the budgeted amounts to determine the accuracy or error of the budget and adjust it as necessary.
a)Actual inflows
b)Actual outflows
c)Both actual inflows and outflows
d)Current assets

8) Which one of the following is a liquid asset?
a)Cash in a saving account
b)A swimming pool
c)Real estate
d)Stock held in an IRA

9) Joe Schmo is in the 28% tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of:
a)$694
b)$528
c)$500
d)$360

10) Liabilities can be calculated by
a)Adding assets plus net worth
b)Subtracting net worth from assets
c)Adding assets plus income
d)Subtracting expenses from assets

Reference no: EM1352952

Questions Cloud

Amcd multicultural counseling competencies : What do the the ACA Code of Ethics and the AMCD Multicultural Counseling Competencies say in respect to diagnosis?

Define organizational psychology : Examine the field of organizational psychology. In your examination, be sure to address define organizational psychology

Field of industrial or organizational psychology : Find the fundamental concepts of the field of industrial/organizational psychology.

Research article from a scholarly or academic journal : Look at a research article from a scholarly/academic journal. This research article should have quantifiable data, a theory or hypothesis, methodology, and conclusion. Summarize the information in the article.

Personal finance multiple choice questions : Money received today is worth more than the same amount of money received in the future. This is true because

State briefly the basic characteristics of pure competition : State briefly the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly.

Find out the average magnitude of the induced emf : An emf is induced in a conducting loop of wire 1.16 m long as its shape is changed from square to circular.

Systems analyst modifying the sales order process : Suppose that you are a systems analyst on a project that involves modifying the sales order process. How many do you need to sample if you want 95 percent certainty that you have covered all variations?

Decrease the unwanted employee behaviors : Explain what are some techniques management could use to increase motivation or decrease the unwanted employee behaviors?

User Account

All Pages