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The management of personal finance requires daily management of income and which of the following: Stocks Bonds Expenses Wages What could be done with money? Spend it Invest It Save it All of the above What is Net Worth? the monthly inflow of income versus the outflow of expense personal assets minus personal liabilities anything of financial value Which of the following best describes a financial plan? It summarizes your current financial condition while preparing for future expenses an account set up for retirement that has tax benefits The quantity of money you want to accumulate The difference between your assets and liabilities A risk is described by its: Ranking and probability Cost and ranking Cost and impact Probability and impact Which of the following are ways to mitigate risks? Risk acceptance Risk acceptance Risk Mitigation All of the above The risk profile of an investment could be described by: A Gantt chart A Risk Register A cash flow plan A risk matrix Which of the following risk types cannot be treated with specific responses? Known unknowns Closed risks Secondary risks Unknown unknowns Which of the following is a response strategy for positive risks? Mitigation Avoidance Share Enhance It is important to clarify one's values in order to better develop a financial plan True False Question 12 (1 point) Risks are events that always occur in the future True False Question 13 (1 point) Risks could change with time True False Question 14 (1 point) Which statement best describes the present value of money It is the value of an investment upon its maturity It is the interest that an investment makes at a given interest rate if it were invested today It is the original value of the investment before the addition of interest It is the current value of the future amount of an investment if it were investe today at a given interest rate The value of an investment increases according to its present value True False Question 16 (1 point) The higher the interest rate, the lower the future value of an investment True False The payback period does not take which of the following into its assessment of an investment The time to recoup the investment The investment amount\} The interest rate The inflows after the investment amount has been recovered The payback period is the best technique to evaluate the risk on an investment True False Question 19 (1 point) Investments with higher payouts carry lower risk to the investor True False A risk that carries a high probability and high impact could be described a A manageable risk A residual risk A secondary risk A high risk

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