FP 100 Week 1 Quiz | Assignment Help | University Of Phoenix
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FP 100 Week 1 Quiz | Assignment Help | University Of Phoenix
FP 100 Week 1 Exam
Question 1
In a fee-based arrangement, the planner is
compensated with an annual fee that is usually
o
based on the number of financial
products purchased.
o
waived for large investment portfolios.
o
a set amount for all clients.
o
based on the size of the client’s asset
portfolio being managed.
Question 2
If you seek advice from a number of people
before making a decision, you would be considered a(an)
o
intuitive decision-maker.
o
agonizer.
o
rational decision-maker.
o
external decision-maker.
Question 3
Your salary has
increased 50 percent in five years. What is the annual percentage increase?
Round your answer to one decimal place.
o
8.7%
o
10%
o
8.5%
o
11.2%
Question 4
In deciding whether to go to graduate school,
evaluating the benefit based on the potential change in your earnings is an
example of
o
marginal reasoning.
o
future value.
o
sensitivity analysis.
o
opportunity cost.
Question 5
A comprehensive financial plan includes three
steps: establishing a firm foundation, securing basic needs, and
o
setting short-term goals.
o
monitoring progress.
o
building and protecting wealth.
o
setting long-term goals.
Question 6
You are calculating
your potential return on your stock investments. If you calculate different
possible returns based on assuming a variety of interest rates and stock market
conditions, this is an example of
o
marginal analysis.
o
reasonable assumptions.
o
opportunity cost.
o
sensitivity analysis.
Question 7
Your salary increased from $20,000 to $30,000
in five years. What is the percentage increase?
o
100 percent
o
50 percent
o
150 percent
o
33 percent
Question 8
An expansion is a phase in the economic cycle
that is characterized by
o
increasing business investment and
decreasing employment opportunities.
o
decreasing business investment and
increasing employment opportunities.
o
increasing business investment and
increasing employment opportunities.
o
decreasing business investment and
decreasing employment opportunities.
Question 9
Holly used savings to pay for the books for
her college courses. In choosing to take money from her savings she gives up
the interest that could have been earned on that investment. What is this
trade-off called?
o
Sensitivity analysis
o
Future value
o
Opportunity cost
o
Marginal reasoning
Question 10
For a person in their 20s the goal to save for
retirement is considered a(n)
o
short-term goal.
o
unrealistic goal.
o
long-term goal.
o
intermediate-term goal.
Question 11
When inflation, as measured by the change in
the consumer price index (CPI), is high,
o
the prices of goods and services are
likely to increase.
o
you can buy goods and services cheaper.
o
the value of the dollar is high.
o
you will earn less on your investments.
Question 12
Which of the following in NOT one of the
recommended SMART guidelines for personal financial goals?
o
Realistic
o
Manageable
o
Attainable
o
Specific
Question 13
Which of the following describes a financial
advisor who is paid based on a percentage of products sold or purchased by
clients?
o
Fee-based
o
Fee-only
o
Commission-only
o
Fee plus commission
Question 14
An annuity due is a type of annuity in which
each payment is made or received at
o
the beginning of a period.
o
predetermined intervals within a period.
o
any time.
o
the ending of a period.
Question 15
Which financial ratio do lenders use to
evaluate whether a loan applicant makes enough money to pay the monthly
mortgage payments?
o
mortgage debt service ratio
o
savings ratio
o
debt ratio
o
debt payment ratio
Question 16
The debt payment ratio
is a financial ratio used to calculate and measure the
o
percentage of a person’s after-tax
income required to make monthly debt payments, excluding the person’s home
mortgage.
o
percentage of a person’s after-tax
income required to make all monthly debt payments.
o
percentage of a personal after-tax
income required to make monthly debt payments, excluding student loans.
o
percentage of a person’s gross income
required to make all monthly debt payments.
Question 17
Which of the following best defines market
value?
o
The purchase price of an asset minus
depreciation.
o
The purchase price of an asset plus
depreciation.
o
The price that an asset could be sold
for today.
o
The price that was paid for the asset.
Question 18
Gross monthly income = $3,500
After-tax monthly
income = $2,870
Total debt = $86,000
Total monthly debt
payments = $402
Total assets = $113,000
Based on the
information given above, what is the debt ratio?
o
131%
o
3%
o
47%
o
76%
Question 19
You plan to invest $2,000 every year
(end-of-year payments) from now until you retire in 30 years. If you can earn
7% annually on your invested funds, how much will you have when you retire?
o
$204,146
o
$15,225
o
$25,081
o
$188,922
Question 20
In order to determine
how much you would need to save yearly in order to finance your child’s college
education in 10 years, you would use
o
o
future value.
o
future value of an annuity.
o
present value of an annuity.
o
present value.
Question 21
You can afford to make
monthly payments of a certain amount for three years, and you want to know how
much you can borrow based on this payment amount. Which type of time value of
money calculation should be used to solve this problem?
o
future value of a lump sum
o
present value of an annuity
o
future value of an annuity
o
present value of a lump sum
Question 22
If you borrow to buy a new car, which of the
following items on the balance sheet will be affected?
o
assets only
o
assets and debts
o
debts only
o
unable to determine
Question 23
Fixed expenses are
o
different dollar amounts each month.
o
the same percentage of a person’s income
each month.
o
the same dollar amount in each payment
period.
o
more common than variable expenses.
Question 24
A financial statement used to evaluate the
relationship between your income and expenditures is known as a
o
cost-benefit statement.
o
liquidity statement.
o
personal cash flow statement.
o
personal balance sheet.
Question 25
When recording inflows and outflows of cash
for the cash flow statement, it is important
o
to monitor your spending for at least
two years to get an accurate picture.
o
not to alter your normal spending behaviour.
o
to record assets at their market value.
o
to track inflows more than outflows.
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