financial decision planning week2 QUIZ 2

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School

Keiser University *

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Course

4126

Subject

Finance

Date

Feb 20, 2024

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docx

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Uploaded by LieutenantPuppy813

 Question 1 10 out of 10 points For what does medigap insurance pay? Selected Answer: The portion of medical expenses not covered by the government. Answers: The portion of medical expenses covered by the government. The portion of medical expenses not covered by the government. Assistance at home. Payments to a nursing home. None of the above.  Question 2 10 out of 10 points The net effect of government supported organizations such as Fannie Mae, Ginnie Mae, and Freddie Mac is to: Selected Answer: To broaden credit and offer it at a cheaper rate than might otherwise prevail. Answers: To broaden credit and offer it at a cheaper rate than might otherwise prevail. To narrow credit but offer it at a cheaper rate than might otherwise prevail. To broaden credit but offer it at a more expensive rate than might otherwise prevail.

To narrow credit and offer it at a more expensive rate than might otherwise prevail. None of the above.  Question 3 10 out of 10 points Which of the following best describes cash flow planning? Selected Answer: The scheduling of current and future cash needs to achieve household goals. Answers: The scheduling of current and future cash needs to achieve household goals. The recognition that cash flows can only be generated through strategic planning. A financial planning scheduling strategy that links financial reviews to cash flows. All of the above describe cash flow planning. None of the above describes cash flow planning.  Question 4 10 out of 10 points Which of the following influences one's risk tolerance? Selected Answer: All of the above. Answers: Personality. Upbringing. Type of future cash flows for the household.

All of the above. None of the above.  Question 5 10 out of 10 points Which of the following best describes financial assets? Selected Answer: Assets in which ownership is represented and traded solely through pieces of paper. Answers: Assets in which ownership is represented and traded solely through pieces of paper. Assets that can be sold currently in a public forum for fair value at low transaction costs. Assets that you can see or touch that have market value. All of the above. None of the above.  Question 6 10 out of 10 points Project A has NPV of $45 million while project B has NPV of $54.5 million. If the cost of project A is $33 million and the cost of project B is $22 million, which project should be chosen if only one can be chosen? Selected Answer: Project B. Answers: Project A.

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Project B. Neither. Both. Answer varies, depending on inflation.  Question 7 10 out of 10 points In practice, we can view risk as: Selected Answer: The probability of a loss or an outcome that is below expectations. Answers: The probability of a loss or an outcome that is below expectations. The inability to hedge a loss or an outcome that is below expectations. The probability that more outcomes are below expectations than above expectations. All of the above. None of the above.  Question 8 10 out of 10 points What are capital expenditures? Selected Answer: Outlays that provide benefits over an extended period of time.

Answers: Outlays for financial assets. Outlays that provide benefits over an extended period of time. Outlays thata can be used for purchasing new assets but not improving existing one. Both a and b. Both b and c.  Question 9 10 out of 10 points Which of the following is not a use of home ownership? Selected Answer: Short-term investment. Answers: Providing shelter. Short-term investment. Providing pleasure to its occupants. All of the above are uses of home ownership. Both b and c are not uses of home ownership.  Question 10 10 out of 10 points Using cash as much as possible is a method through which one can: Selected Answer:

Reduce temptation. Answers: Reduce temptation. Minimize discomfort. Eliminate options to spend. All of the above. None of the above. Friday, February 2, 2024 11:19:31 AM EST

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