Financial Wellness Exam Preparation Guide
Course Introduction
Financial Wellness explores the principles and practices necessary for achieving and maintaining personal financial health. The course covers fundamental topics such as budgeting, saving, investing, credit management, debt reduction, and understanding financial products and services. Students will learn to set short-term and long-term financial goals, make informed decisions regarding spending and saving, and develop strategies for building wealth and managing financial risks. Emphasis is placed on developing practical skills and financial habits that support overall well-being, resilience against financial setbacks, and confidence in navigating the complexities of personal finance both during and after university life.
Recommended Textbook
Personal Finance Turning Money into Wealth 7th Edition by Arthur J. Keown
Available Study Resources on Quizplus
17 Chapters
2509 Verified Questions
2509 Flashcards
Source URL: https://quizplus.com/study-set/1046 Page 2
Chapter 1: The Financial Planning Process
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/20731
Sample Questions
Q1) According to the Keown book,you might begin to think about estate planning during this stage of the financial life cycle.
A) Stage 1: wealth accumulation
B) Stage 2: the golden years
C) Stage 3: the retirement years
D) Stage 4: the formative years
Answer: B
Q2) The major reason to make a financial plan is to
A) account for your spending.
B) see where you are overspending or underspending.
C) achieve your financial goals.
D) allow for a surplus.
E) serve as a tax planning guide.
Answer: C
Q3) After retirement starts,which aspect of financial planning becomes imperative?
A) Maintaining a regular pattern of saving
B) Long-term borrowing commitments
C) Estate planning
D) Effects of inflation
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Measuring Your Financial Health and Making a Plan
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/20732
Sample Questions
Q1) Your ________ is found by dividing total debt or liabilities by total assets.
A) debt ratio
B) current ratio
C) net worth
D) asset ratio
Answer: A
Q2) Planning and budgeting requires
A) control.
B) financial restraint.
C) discipline.
D) all of the above.
Answer: D
Q3) What is their current net worth?
A) $13,000
B) $22,000
C) $9,000
D) $35,000
E) $(13,000)
Answer: C
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Understanding and Appreciating the Time Value of Money
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/20733
Sample Questions
Q1) You have been saving toward the purchase of a new mountain bike.Five years ago,you placed $600 in a bank account,and you have since earned an annual rate of return of 12 percent.How much do you now have in your account?
A) $1,057.41
B) $1,293.71
C) $978.70
D) $1,138.70
Answer: A
Q2) What would be the interest rate on a loan of $9,981.78 that you paid off with annual payments of $2,500 for each of the next five years?
A) 8.0%
B) 10%
C) 15%
D) 21%
E) 26%
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Tax Planning and Strategies
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/20734
Sample Questions
Q1) You and spouse are filing a joint return.Your current deductions have reduced your taxable income to $88,990,bringing you into the 25 percent tax bracket.The first dollars you earned will be taxed at the ________ tax bracket.
A) 10 percent
B) 15 percent
C) 25 percent
D) 33 percent
Q2) You and your spouse have earned salary and wages of $41,750.In addition you have municipal bond interest income of $600 and savings account and certificate of deposit interest income of $800.You paid a total of $600 in interest on your student loan.Using only this information,what is your adjusted gross income for tax purposes?
A) $43,150
B) $42,550
C) $42,350
D) $41,950
Q3) You pay taxes only when you sell stock and realize the gain.
A)True
B)False
Q4) What are the five general tax strategies in tax planning?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Cash or Liquid Asset Management
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/20735
Sample Questions
Q1) Cash and investments that can be easily converted into cash are termed
A) capital assets.
B) liquid assets.
C) illiquid assets.
D) depositable assets.
E) None of the above are correct.
Q2) Electronic funds transfer applies to which of the following?
A) Debit cards
B) Smart cards
C) Direct deposit
D) ATM
E) All of the above are correct answers.
Q3) A store-valued card,only used at one store for one purpose,is known as an "open-loop" card.
A)True
B)False
Q4) List five features available through online and mobile banking.
Q5) Briefly describe each of the cash management alternatives discussed in this chapter.
Page 7
Q6) What is a risk associated with keeping liquid assets?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Using Credit Cards: The Role of Open Credit
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/20736
Sample Questions
Q1) People with high credit card balances still need to invest money on a regular basis.
A)True
B)False
Q2) The Credit Card Accountability,Responsibility,and Disclosure (CARD)Act established fee caps for cards.Card fees cannot total more than ________ of the initial credit limit.
A) 25 percent
B) 40 percent
C) 45 percent
D) 60 percent
Q3) Which one of the following items of evaluation would Susan score the highest on?
A) Employment history
B) Annual income
C) Length of residence
D) None of the above
Q4) What can you do if you cannot pay your credit card bills?
Q5) A secured credit card is a good tool to help establish credit.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Student and Consumer Loans: The Role of Planned Borrowing
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/20737
Sample Questions
Q1) Which of the following characterize secured loans?
A) They are typically easier to get.
B) Interest rates tend to be lower than unsecured loans.
C) They reduce the lender's risk.
D) They are backed with either physical or investment assets.
E) All of the above
Q2) Payday lenders
A) make money by providing one-time assistance during a time of financial need.
B) make money by keeping borrowers in debt.
C) encourage repeat borrowing.
D) all of the above.
Q3) Suppose that you are interested in buying a home,but are unsure of how much you can afford.What is the best way to determine your prospects for obtaining a mortgage?
A) Calculate your debt limit ratio.
B) Figure the 28/36 rule.
C) Determine what your mortgage payment will be.
D) Determine what your income taxes will be.
E) Both B and C are correct answers.
Q4) Describe the four types of student-loan repayment plans.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: The Home and Automobile Decision
Available Study Resources on Quizplus for this Chatper
199 Verified Questions
199 Flashcards
Source URL: https://quizplus.com/quiz/20738
Sample Questions
Q1) Subprime mortgages are mortgages taken out by people with low credit scores.
A)True
B)False
Q2) One of the main barriers to home ownership is the down payment.
A)True
B)False
Q3) With a(n)________ mortgage,you make relatively small monthly payments for several years,after which the loan comes due and you must pay it off in one large payment.
A) growing equity
B) option payment ARM
C) interest only
D) balloon payment
Q4) What are the basic financing options when considering a new vehicle?
Q5) Describe the keys to obtaining a "good" lease.
Q6) Explain why the 28/36 percent rule is so important to understand.
Q7) Name the steps in the housing decision.
Q8) Why is important to determine your housing needs not only for the present but also for the next several years?
Q9) Name the steps in smart buying. Page 10
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Life and Health Insurance
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/20739
Sample Questions
Q1) Long-term care insurance may not be a good buy for people under the age of 40.
A)True
B)False
Q2) Barry Blair wants to select a good life insurance agent.His dad has had several negative experiences with life insurance agents in the past.What should Barry consider when selecting an agent?
A) Has a professional designation
B) Is a full-time agent
C) Has the necessary experience and training
D) Has references
E) All of the above
Q3) The beneficiary is the individual designated by the owner of the life insurance policy to receive the insurance policy's proceeds upon the death of the insured.
A)True
B)False
Q4) The advantage of whole life insurance is that it is generally cheaper than term life insurance per dollar of coverage.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Property and Liability Insurance
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/20740
Sample Questions
Q1) Barbara is over 55 so she qualifies for additional home owner's insurance discounts.
A)True
B)False
Q2) Which of the following statements is true?
A) The lower your insurance credit score, the higher your homeowner's insurance rate will be.
B) The higher your insurance credit score, the higher your homeowner's insurance rate will be.
Q3) The personal automobile policy (PAP)provides broad coverage,but there are a number of standard exceptions.Give five of them here.
Q4) Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.
A)True
B)False
Q5) You should not alter or repair any physical damages to your property until after the claims adjuster has investigated the loss.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Investment Basics
Available Study Resources on Quizplus for this Chatper
309 Verified Questions
309 Flashcards
Source URL: https://quizplus.com/quiz/20741
Sample Questions
Q1) A circuit breaker protects individual investors from losing money on their investments.
A)True
B)False
Q2) Changes in the capital gains tax rate,or in the tax deductibility on municipal bonds are examples of ________ risk.
A) inflation
B) political and regulatory
C) interest rate
D) exchange rate risk
E) none of the above
Q3) The Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Enforcement Act of 1988 made it illegal to trade while in the possession of inside information,or "material" non-public information held by A) officers.
B) directors.
C) major stockholders.
D) All of the above are correct.
E) Only A and B are correct.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 12: Investing in Stocks
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/20742
Sample Questions
Q1) The discounted dividends valuation model of common stock assumes that dividends will grow at a constant rate forever.This method tells us that the (dividend next year)divided by the (required rate of return - growth rate)yields the
A) discounted dividend.
B) dividend growth rate.
C) value of the common stock.
D) value of the earnings.
E) value of the P/E ratio.
Q2) You and a group of your friends have been discussing your portfolios at the company water cooler.Your discussion has centered on how your stocks are moving up or down in price relative to the market as a whole.Each stock's ________ is likely the best measure of the relationship.
A) relative index
B) beta
C) alpha
D) delta
E) none of the above
Q3) Why is using the P/E ratio a very popular valuation tool?
Q4) Differentiate between the general classifications of common stock.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: Investing in Bonds and Other Alternatives
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/20743
Sample Questions
Q1) A bond rating is really a measure of a bond's
A) performance.
B) yield.
C) market value.
D) riskiness.
E) yield to maturity.
Q2) For an investor looking for capital gains,preferred stock is preferred over common stock.
A)True
B)False
Q3) Sherman has three bonds with a $1,000 par value that pay a 9% coupon interest rate.How much will he earn every six months?
A) $27
B) $90
C) $135
D) $202.50
E) $270
Q4) Gold,precious gems,and other collectibles always earn handsome returns. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: Mutual Funds: An Easy Way to Diversify
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/20744
Sample Questions
Q1) By law,all mutual funds must be broadly diversified.
A)True
B)False
Q2) Which of the following is a benefit to investing in a mutual fund?
A) Most small investors don't have the time, knowledge or desire to do the research necessary to purchase individual stocks.
B) Mutual fund transaction fees are considerably lower than the brokerage fees most small investors incur buying and selling individual stocks.
C) Most small investors want to be able to invest relatively small amounts of money on a regular basis.
D) All of the above are correct.
E) Only A and B are correct.
Q3) Explain what the three 'classes' of a mutual fund shares are all about.
Q4) Mutual fund fees and expenses will negatively affect the return you receive on your investment.
A)True
B)False
Q5) Prepare a case for investing in a bond fund versus individual bonds.
Q6) What is the purpose of a Target Retirement fund and who would benefit from it?
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Retirement Planning
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/20745
Sample Questions
Q1) Reggie has two children.He is wanting to put money away for their college education.What type of plan can only be used for college and graduate school,and allows contributions of up to $250,000?
A) 403(b)
B) ESOP
C) 529
D) 12b-4
Q2) A(n)________ retirement plan is one in which the company will contribute shares of company stock into the employee's account in place of a cash contribution.The employee does well if the company stock appreciates in value,but can suffer dramatically if the stock depreciates in value.
A) 401(k) stock account
B) 403(b) stock account
C) ESOP
D) stock repurchase plan
Q3) Your decision on what type of annuity to purchase will have a dramatic impact on the monthly payments you will receive upon retirement.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 16: Estate Planning: Saving Your Heirs Money and Headaches
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/20746
Sample Questions
Q1) One in 10 American adults who do not have any elements of an estate plan in place say that they haven't created a plan because they don't want to think about dying or becoming incapacitated.
A)True
B)False
Q2) The law allows you to give $25,000 per year tax free in 2015 to as many people as you'd like.
A)True
B)False
Q3) Because Toby and Jenny's children are under the age of 18 they should name a ________ to care for them and manage their property should Toby and Jenny pass away.
A) juvenile attorney
B) guardian
C) proxy
D) godparent
E) none of the above
Q4) Describe the typical funeral and administrative expenses.
Page 19
Q5) What steps would you take in the estate planning process?
Q6) How can you use the unlimited marital deduction to your advantage?
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 17: Financial Life Events Fitting the Pieces Together
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/20747
Sample Questions
Q1) Roxanne began saving for retirement at age 23 when she graduated college.She wants to have $2.3 million dollars in her retirement account when she reaches age 55.If she deposits $9,000 each year in an account earning an 11% Annual Rate of Return,will she achieve her goal in time?
A) Yes, she will have over $2.3 million dollars in the account.
B) No, she will have less than $2.3 million dollars in the account.
Q2) Living below your means leads to a harsh,barren lifestyle with little or no pleasure in life.
A)True
B)False
Q3) How should a family plan for having children from a personal financial perspective?
Q4) How can someone plan for a divorce?
Q5) If you have good financial goals then you really don't need a financial plan.
A)True
B)False
Q6) Buying a home is one of the smartest investments you can make.What are the proper steps necessary to make sure you do it right?
Q7) Why is it more challenging for women to become financially security?
Page 21
To view all questions and flashcards with answers, click on the resource link above.