The Financial Decision-Making Process Is Complicated ✓ Solved

The Financial Decision Making Process Is Complicat

The financial decision-making process is complicated by all of the following factors EXCEPT question 1 options: A) uncertainty and risk. B) the use of information in planning. C) the relative importance of consequences. D) the number of factors to consider. E) the complexity of relationships among factors. question 2 options: A) wealth or surplus to invest. B) knowledge to invest with confidence. C) time before you need your money for expenses. D) a. and b. E) a., b., and c. question 3 options: A) you depend on credit for regular expenses. B) you have used credit appropriately in the past. C) you can afford to take on more credit. D) little or no current debt. E) record of paying what you owe on time. question 4 options: A) the expense ratio. B) the turnover ratio. C) the 12b-1 fee. D) the dividend distribution. E) the capital gains distribution. question 5 options: A) lifelong. B) the five-year plan. C) the time it takes to set goals. D) approximately 65 years. E) the time it takes to realize goals. question 6 options: A) a mutual fund. B) a fund traded like a share of stock. C) an index fund. D) a. and b. E) a., b., and c. question 7 options: A) potential return. B) susceptibility to types of risk. C) asset value. D) a. and b. E) a., b., and c. question 8 options: A) the down payment. B) financing costs. C) opportunity and liquidity costs. D) a. and b. E) a., b., and c. question 9 options: A) the return on your savings in retirement. B) how long you will be retired before you die. C) what your expenses will be in retirement. D) a. and b. E) a., b., and c. question 10 options: A) Second opinions B) Verification of identity or certification C) Written estimates D) a. and b. E) a., b., and c. question 11 options: A) achieve diversification at lower transaction cost. B) receive the benefit of professional expertise. C) opt for passive portfolio management. D) a. and b. E) a., b., and c. question 12 options: A) seasonal or expiration date discounts. B) brand or label discounts. C) price discrimination. D) discounts on excess inventory. E) volume or quantity discounts. question 13 options: A) helps you to choose alternatives. B) allows you to establish a budget. C) prevents you from making bad decisions. D) reveals shortcuts to reaching your goals. E) forces you to defer some goals. question 14 options: A) borrow money as needed, up to a limit. B) pay down each loan as desired. C) pay interest only on the outstanding balance. D) a. and b. E) a., b., and c. question 15 options: A) major medical insurance. B) basic insurance. C) a formulary. D) dental and vision insurance. E) group health insurance. question 16 options: A) defining your goals. B) saving for the time when you will not have income from employment. C) estimating how much savings you will need to retire when you want. D) a. and b. E) a., b., and c. question 17 options: A) probability. B) volatility. C) predictability. D) a. and b. E) a., b., and c. question 18 options: A) current debts and PITI calculation. B) income and employment. C) credit history and credit score. D) a. and b. E) a., b., and c. question 19 options: A) include future and forward contracts. B) are time-sensitive with an expiration date. C) depend on the value of commodities. D) a. and b. E) a., b., and c. question 20 options: A) the five C’s. B) your credit score. C) the prime rate. D) a. and b. E) a., b., and c. question 21 options: A) you pass a driver education course. B) you live in an accident-prone or high crime area. C) you have had an accident in the past three years. D) a. and b. E) a., b., and c. question 22 options: A) a mandatory payroll tax. B) both employers and employees. C) your income taxes. D) a. and b. E) a., b., and c. question 23 options: A) 38% B) 33% C) 25% D) 50% E) 15% question 24 options: A) difficult to price. B) vulnerable to economic cycles and default risk. C) in real estate financing rather than real estate. D) a. and b. E) a., b., and c. question 25 options: A) live within your means. B) avoid buyer’s remorse. C) shop for bargains. D) a. and b. E) a., b., and c. question 26 options: A) microeconomic factors. B) macroeconomic factors. C) personal factors. D) a. and b. E) a., b., and c. question 27 options: A) college loans. B) car loans and home mortgages. C) personal loans. D) a. and b. E) a., b., and c. question 28 options: A) following the owner’s manual. B) maintaining a valid driver’s license. C) registering and insuring the car. D) a. and b. E) a., b., and c. question 29 options: A) Between $24,000 and $26,000 a year. B) Between $15,000 and $16,000 a year. C) Between $19,000 and $20,000 a year. D) Between $10,000 and $11,000 a year. E) Between $13,000 and $14,000 a year. question 30 options: A) recession. B) consumption. C) inflation. D) GDP. E) purchasing power. question 31 options: A) has a maximum contribution limit. B) is a tax-deferred plan. C) is a portable plan. D) a. and b. E) a., b., and c. question 32 options: A) the age and size of the house. B) the location and proximity to a hydrant. C) the number of occupants. D) a. and b. E) a., b., and c. question 33 options: A) burglar alarms. B) electrical upgrades. C) fire extinguishers. D) deadbolt locks. E) smoke detectors. question 34 options: A) recurring incomes and expenses. B) free cash flows for capital expenditures. C) risks and choices in the timing of cash flows. D) attainable short-term goals and lifestyle goals. E) the importance of cash management tools. question 35 options: A) how long you have been using credit. B) the types of credit issued to you. C) your credit history. D) your current debt. E) your character. question 36 options: A) the present value increases. B) the time value increases C) the rate of compounding increases D) a. and b. E) a., b., and c. question 37 options: A) legal requirements. B) tax obligations. C) time horizon. D) liquidity needs. E) level of debt. question 38 options: a mutual fund. a fund reflecting the performance of similar securities. a fund managed by a company, brokerage, or bank. a. and b. a., b., and c. question 39 options: A) divestment. B) legal constraints. C) unique circumstances. D) risk tolerance. E) social investment. question 40 options: A) financial history. B) recurring incomes. C) the time value of money. D) a. and b. E) a., b., and c. question 41 options: A) loan money and receive interest B) receive repayment of principal at maturity. C) borrow money and pay interest. D) a. and b. E) a., b., and c. question 42 options: A) the dynamics of probability. B) the study of behavioral finance. C) the uncertainty of independent events. D) a. and b. E) a., b., and c. question 43 options: A) pay dividends. B) sell equity for liquidity. C) buy a share of a corporation. D) a. and b. E) a., b., and c. question 44 options: A) liquidating assets to pay creditors. B) achieving positive net worth. C) refinancing debt on different terms. D) a. and b. E) a., b., and c. question 45 options: A) the lower your cost of debt. B) the lower your interest rate risk. C) the higher your cost of debt. D) the higher your interest rate risk. E) the lower your default risk. question 46 options: A) automatic payments. B) debit and ATM cards C) direct deposits. D) a. and b. E) a., b., and c. question 47 options: A) the price. B) the manufacturer’s rebate. C) service discounts on maintenance. D) the dealer’s warranty terms. E) the trade-in value of your old car. question 48 options: A) diversification. B) security selection. C) asset allocation. D) a. and b. E) a., b., and c. question 49 options: A) interest. B) dividends. C) capital gains. D) a. and b. E) a., b., and c.