Exam (elaborations)
CSR 342 Final Exam Questions For Reflection With Correct Solutions
- Course
- Institution
CSR 342 Final Exam Questions For Reflection With Correct Solutions
[Show more]
Content preview
CSR 342 Final Exam Questions ForReflection With Correct Solutions
Ch1
Personal finance is a specialized area of study that focuses on individual and household
financial decisions, such as...
a. budgeting, saving, and spending.
b. insurance and investments.
c. tax and retirement planning.
d. All the choices are correct. CORRECT ANSWERS d. All the choices are correct.
A person's fundamental beliefs concerning what is important in life are referred to as
a. judgments.
b. values.
c. attitudes.
d. opinions. CORRECT ANSWERS b. Values
In a __________ arrangement, the planner is compensated for every financial product
sold but does not receive any payment for developing a personal financial plan.
a. Fee-only
b. Commission-only
c. fee plus commission
d. fee offset by commission CORRECT ANSWERS b. Commission-only
What are the requirements to be a professional financial planner?
a. None; virtually anyone can claim to be a financial planner.
b. Pass examinations required by federal and/or state law.
c. Complete specific education requirements before being permitted to advise clients.
d. Pass examinations required by federal and/or state law, and complete specific
education requirements before being permitted to advise clients. CORRECT ANSWERS
a. None; virtually anyone can claim to be a financial advisor
When you make decisions based on the additional benefit that will result, as compared
with your current situation, rather than the total benefit, you are applying
a. marginal reasoning.
b. opportunity costs.
c. sensitivity analysis.
d. rate of return. CORRECT ANSWERS a. Marginal Reasoning
For a typical family, which of the following categories of regular expenses usually
increases with inflation? (Select any two.)
1. Food
2. Mortgage payments
,3. Transportation
4. Student loan payments CORRECT ANSWERS 1. Food and 3. Transportation
Young, single people with no children tend to take
a. more risks than older, married people with children.
b. less risks than older, married people with children.
c. the same risks as older, married people with children.
d. the same risks as married people with children. CORRECT ANSWERS a. More risks
than older, married people with children
The Federal Reserve often __________ the __________ rate to stimulate the economy.
a. lowers; prime
b. lowers; federal funds
c. raises; federal funds
d. raises; prime CORRECT ANSWERS b. Lowers; federal funds
Use the inflation calculator in Excel Worksheet 1.2 to find out what a movie ticket that
cost 24 cents in 1970 would have cost in 2019 dollars. (Round answer to 2 decimal
places, e.g. 52.75.)
Movie ticket cost in 2019 $_______
Have movie ticket prices increased at a faster or slower rate than other prices?
Movie ticket prices increased at a select an option _____faster/slower___ rate than
other prices. CORRECT ANSWERS $1.59
Faster
Which type of decision maker is most likely to have trouble sticking to a budget and, as
a result, may fall into debt?
Rational decision maker
External decision maker
Intuitive decision maker
Internal decision maker CORRECT ANSWERS Intuitive decision maker
Which of the following should not be a major factor when choosing a personal financial
planner?
Affiliation
Certification
Education
Reputation CORRECT ANSWERS Affiliation
Linda currently works as a manager of an electronics store earning an annual salary of
$65000. She noticed an internal job opening for a regional manager that pays $130000
salary, but an MBA is required for consideration. The cost for a full-time MBA program
in two years is $75000. What is her opportunity cost for attending graduate school full-
time, without consideration for time value of money?
$130000
,$150000
$205000
$280000 CORRECT ANSWERS 75k (cost of MBA program)+ 130k (2 years of missed
salary) = $205k
Your goals will differ depending on your stage in the life cycle and your family makeup.
Which is not an appropriate short-term savings goal?
Spring break vacation
Emergency fund
Down payment on a home
Life insurance CORRECT ANSWERS Down payment on a home
Which of the following are parts of the economic cycle? (Select any 2)
Expansion
Extension
Decline
Inflation
Recession
Unemployment CORRECT ANSWERS Expansion and Recession
Which of the following is not one of the recommended SMART guidelines for personal
financial goals?
Realistic
Attainable
Manageable
Specific CORRECT ANSWERS Manageable
In deciding whether to attend graduate school full-time, estimating your lost earnings
while you are in school is an example of
marginal reasoning.
sensitivity analysis.
future value.
opportunity cost. CORRECT ANSWERS Opportunity Cost
Your school just announced a tuition increase of 10 percent for next year. The annual
tuition will increase from $7600 to $8360. If you expect that your other college-related
expenses will increase with inflation from $10000 to $10400, what is the expected
percentage increase in your total college costs for next year?
7%
4%
6%
10% CORRECT ANSWERS 7%
David received a 10% raise this year, resulting in a new salary of $40700. What was
David's salary last year?
$37000
, $38850
$38665
$36630 CORRECT ANSWERS $37k
Janelle has asked her friend Danny to drive her to the airport, which is a 60-mile, two-
hour round trip, so that she can save the $20 cost of the shuttle bus. Danny will have to
miss his personal finance class in order to take her there. If Janelle is willing to pay
Danny for this service, Danny should charge her select an option ___more/or___ less
than the cost of the shuttle bus, taking into account his time in addition to the price of
gas. CORRECT ANSWERS more
Sharon's purchased 1480 shares of the S&P 740 index (SPY) at $444 per share, inside
her $1.6 million fee-only account this year. The planner's firm charges commissions of
$0.25 per share and 1% on fee-based accounts. How much does her planner charge
this year?
$370
$6571
$16000
$16370 CORRECT ANSWERS fee only acct so 0.01*1.6mill= $16k charge
James owes $5,000 on a credit card that charges 21 percent interest.
Use Table 1.4 to determine the monthly payment James will have to make in order to
pay back the debt within 4 years.
Monthly payment $enter the monthly payment in dollars
If James doubled the payment, would he be able to pay off his debt in 2 years?
____Yes/No____ CORRECT ANSWERS $155, Yes
Your salary increased from $22200 to $32200 in 5 years. What is the percentage
increase?
31%
45%
100%
145% CORRECT ANSWERS 45%- (32200-22200)/22200
Personal finance is a specialized area of study that focuses...
exclusively on investments and retirement planning.
on financial management, household budgets, and investments.
exclusively on investment management and household budgets.
on individual and household financial decisions, such as budgeting, saving, spending,
tax-planning, insurance, and investments. CORRECT ANSWERS on individual and
household financial decisions, such as budgeting, saving, spending, tax-planning,
insurance, and investments.
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ElevatedExcellence. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now