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Which aspect of financial planning deals with the purchase

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Question Question 1. 1.(TCO 1) Which aspect of financial planning deals with the purchase of long-term growth funds such as stocks? (Points : 4) Borrowing Spending Managing risk Investing Retirement and estate planning Question 2. 2.(TCO 1) Jack Johnson is interested in purchasing new furniture tha...

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  • September 10, 2017
  • 8
  • 2017/2018
  • Exam (elaborations)
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Question

Question 1. 1.(TCO 1) Which aspect of financial planning deals with the purchase of long-term

growth funds such as stocks? (Points : 4)

Borrowing

Spending

Managing risk

Investing

Retirement and estate planning

Question 2. 2.(TCO 1) Jack Johnson is interested in purchasing new furniture that currently costs

$2,000. He is not sure if he can afford the furniture now, but is afraid the cost of the furniture

will increase to $3,000 in 6 months. Which type of risk is Jack worried about? (Points : 4)

Inflation risk

Interest rate risk

Income risk

Personal risk

Liquidity risk

Question 3. 3.(TCO 1) Which step in the financial planning process is demonstrated by a

decision in which Royanne must choose between working additional hours beyond 40 a week to

earn money for a European vacation and have money left over versus continuing to work full

time with the possibility of not getting any time off to travel? (Points : 4)

Determining her current financial situation

Developing her financial goals

Identifying alternative courses of action

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