# Personal Family Financial Planning Quiz

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## Week- 1

### Time Value of Money Assignment

1.
Question 1
Michael and Jessica decide to invest \$2,000 in a portfolio of stocks for a time period of 5 years. They believe that the portfolio would give them a return on investment of 8%. What would be the total sum at the end of 5th year?

1 point

\$2938.65

\$2900

\$2648.23

\$2600

2.
Question 2
Earl Broker is 25 years old, senior in college and he decides to put \$150 every year in a Roth IRA through Vanguard Total Stock Market ETF. It gives the return of 10%. Find the total sum he will receive when he will withdraw the money in his 65th birthday.

1 point

\$66,388.86

C\$60,688.58

\$65,688

\$68,588.48

3.
Question 3
Betsy Parker wants to buy a house in next 10 years and decides to have a SMART goal of having \$40,000 as down payment. With the investment that gives interest rate of 5%, how much money she needs to set aside now?

1 point

\$20,000.85

\$24,556.53

\$28,046

\$30,056.63

4.
Question 4
A portfolio manager came up with a lucrative offer for Debbie Smith that he will provide her with \$15,000 per year for 20 years if she can invest certain amount upfront. Considering the return of the portfolio as 8 %, how much money Debbie needs to come up with?

1 point

\$145,189.43

\$50,186.54

\$150,352.56

\$147,272.21

5.
Question 5
Instead of investing a lump sum of \$25,000, Brittany Royer decides to save the money in a vault for 2 years. Assuming the inflation being 2.5% per year, how much will her purchasing power decline in 2 years time?

1 point

\$1334.7

\$1265.6

\$1000.5

\$1556.2

6.
Question 6
A combination of stocks and bond portfolio offers Mike Spangler a rate of return of 8.5%. Considering the inflation rate of 3%, what is the actual (real) rate of return?

1 point

3.33%

5.33%

9.33%

7.33%

### Quiz 1

1.
Question 1
Inflation is defined as a steady rise in the general level of prices.Question text

1 point

False

True

2.
Question 2
A method by which one can compare cash flows across time, either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) is called

1 point

simple interest

time-value of money

marginal analysis.

compounding

3.
Question 3
In 2 years you are to receive \$4,000. If the interest rate were to suddenly increase, the present value of that future amount to you would

1 point

Remains unchanged

Rise

Cannot be determined

Fall

4.
Question 4
You can use ——————– to roughly estimate how many years a given sum of money must earn at a given compound annual interest rate in order to double that initial amount .

1 point

Rule of 140

Rule of 142

Rule of 72

Rule of 75

5.
Question 5
The process of obtaining future values is referred to as:

1 point

Annuitizing

Discounting

Compounding

None of the above

## Week- 2

### Financial Record Keeping Assignment

 An important part of business planning process is he preparation of financial statements to predict the outcome of an organization in future.

### Quiz 2

1.
Question 1
How can you track your current spending?

1 point

Have a spending diary

Keep all receipts

Use budgeting app like Mint

All of the above

2.
Question 2
Which is NOT a way to reduce your flexible or variable expenses?

1 point

Eating out frequently

Control electricity usage

Carpool

Limit grocery shopping

3.
Question 3
The primary purpose of setting long-term financial goals is to help

1 point

measure financial success or failure.

achieve a comfortable retirement.

acquire great wealth.

provide direction for overall financial planning.

4.
Question 4
What is Net Worth?

1 point

Income minus expense

Assets minus liabilities

Assets minus expenses

Income minus liabilities

5.
Question 5
Rent and Mortgage payments are examples of:

1 point

Short-term liabilities

Fixed expenses

Variable expenses

Long-term liabilities

## Week- 3

### Tax Planning Assignment

Note- Just write anything whatever you know. There is no right or wrong

### Quiz 3 – Taxation

1.
Question 1
Which is NOT a way to reduce taxable income?

1 point

Defer income

Shift income to someone else

Increase deductions

All of the above

2.
Question 2
While saving for a long run, if you decided not to pay taxes now but to pay them later, then that option is known as __________________

1 point

Tax-exempt

Tax-deferred

None of the above

Tax-deduction

3.
Question 3
Which option doesn’t provide you current tax savings on your contribution however you don’t have to pay taxes later at the time of withdrawal?

1 point

Roth IRA

4.
Question 4
Bryan Smith decided to donate \$2,000 to a local charity. Considering that he can itemize this deduction, how much will he save in his federal income taxes if he is in 25% marginal tax rate?

1 point

\$600

\$525

\$625

\$500

5.
Question 5
Brittany Spangler is a 22 year old unmarried graduate student and she claimed as a dependent on her parent’s tax return. What is the maximum number of personal exemptions she can legally claim on her own tax return?

1 point

0

3

2

1

## Week- 4

### Credit Report Assignment

1.
Question 1
i. Do you have late payments?

1 point
What do you think?

 In some cases it is possible to have late payments removed from your credit reports as I rebuild my credit. 1

2.
Question 2
ii. What % of capacity are you using?

1 point
What do you think?

 30%

3.
Question 3
iii. How long have you had credit?

1 point
What do you think?

 2 years

4.
Question 4
iv. What inquiries have you had? How recent? How spaced out?

1 point
What do you think?

 None

5.
Question 5
v. What types of credit have you used? Revolving, installment?

1 point
What do you think?

 Installment

### Quiz 4 – Credit

1.
Question 1
Which Law requires creditors to disclose the annual percentage rate of interest and finance charge in dollars?

1 point

Equal Credit Opportunity Act

Fair Credit Billing Act

Truth in Lending Act

Fair Debt Collection Practices Act

2.
Question 2
A lender can legally discriminate in granting credit based on

1 point

race.

age.

sex.

credit history.

3.
Question 3
A borrower with an excellent credit history would be most likely to receive credit with

1 point

both higher credit limits and lower interest rates.

higher credit limits.

lower interest rates.

variable interest rates.

4.
Question 4
A factor in the development of credit scores is

1 point

amounts owed.

types of credit you use.

payment history.

all of these.

5.
Question 5
Credit bureau files can be used to help evaluate applications for

1 point

credit.

employment.

insurance.

all of these.

## Week- 5

### Insurance Assignment

Note- Just search the question on google and copy what you find then paste because there is no right or wrong

4. How much will ashley’s  policy pay Ashley and Fran

\$26200

### Quiz 5 – Risk Management

1.
Question 1
The various ways to deal with risk is to avoid it, reduce it, assume it or transfer it.

1 point

True

False

2.
Question 2
If the risk is going to happen a lot and when it happens it is going to be bad, then we want to _______

1 point

Retain it

Avoid it

Assume it

Transfer it

3.
Question 3
What is the condition that creates or increases the likelihood of loss occurrence?

1 point

Situation

Hazard

Peril

Damage

4.
Question 4
Which of the following statements is not true about insurance deductibles?

1 point

You should always choose the highest deductible you can afford.

The higher the deductible, the higher the insurance premium.

A deductible requires you to pay the first portion of the loss.

Deductibles are common in property insurance policies.

5.
Question 5
Minor injuries to passengers in your car would be covered by which of the following parts of your auto insurance policy?

1 point

Bodily injury liability

Medical payments

Uninsured motorist

None of these

## Week- 6

### Quiz 6

1.
Question 1
Does the market typically reward investor for assuming the idiosyncratic or unique risk?

1 point

Yes

No

2.
Question 2
It is impossible to beat the market because whatever the stock price is today reflects the information that is already out there. Which theory reflects this statement?

1 point

Efficient market hypothesis

Life-cycle theory

Prospect theory

Expected utility theory

3.
Question 3
We need to form our investment strategies based on our goals and the time it will take to reach them,

1 point

True

False

4.
Question 4
What is the importance of asset allocation?

1 point

To reach our future goals

To meet ongoing needs

To produce income

All of the above

5.
Question 5
When we sell a share after the price appreciation and make some money, it is called ___________

1 point

Capital gain

Short sell

Continuous income

Dividends

## Week- 7

### Mutual Funds Assignment

Note- Just search the question on google and copy what you find then paste because there is no right or wrong

### Quiz 7 – Mutual Funds

1.
Question 1
Investment company that pools investors’ money to purchase stock, bonds or other assets is called _________

1 point

Mutual fund

Dow Jones

NYSE

Blue chip stocks

2.
Question 2
Which can be a disadvantage of Mutual funds?

1 point

Management fees incurred

Diversification

Professional management

Tax efficiency of fees

3.
Question 3
Which is source(s) of return to the investors investing in mutual funds?

1 point

Dividends

Capital gains distributions

Appreciation in the NAV

All of the above

4.
Question 4
The first and most important thing to do while selecting a mutual fund to buy is to identify your investment objectives.

1 point

True

False

5.
Question 5
Which is a way/ways to access mutual funds?

1 point

Using brokers

Through Individual Retirement Accounts

Using employer retirement accounts

All of the above.

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