Question $41$

The budget process is an infinite loop similar to the larger financial planning process. It involves

A$.$ All of the answers

B$.$ creating the budget, monitoring actual outcomes, and analyzing variance

C$.$ adjusting budget, expectations, or goals, and redefining goals

D$.$ defining goals, gathering data, forming expectations and reconciling goals and data

Question $42$

To do the math that is involved in the relationships between time, risk, opportunity cost, and value you need to know

A$.$ the discount rate because time discounts value.

B$.$ the timing and amounts of future cash flows.

C$.$ what the future cash flows $($CF$)$ will be$,$ when the future cash flows will be$,$ and the rate at which time affects value.

D$.$ the costs per time period, or the magnitude of the effect of time on value

Question $43$

Equity can be defined as

A$.$ When you buy capital to pay interest.

B$.$ When you borrow capital to purchase an asset.

C$.$ When you buy capital from other investors in exchange for an ownership share

D$.$ When you borrow capital in the capital market.

Question $44$

Financial crises follow a typical pattern of

A$.$ inflation, deflation, and market crashes

B$.$ economic contraction, presidential races, and retail sales crashes.

C$.$ Downward spiraling, uptick in indexes, and recessions

D$.$ economic expansion, asset bubbles, and market crashes.

Question $45$

A fixed$-$rate mortgage is $-$

and an adjustable$-$rate mortgage is $-$

A$.$ the samo as a payment cap, a rate that adjusts according to the appraisal of the home

B$.$ usually risky for borrowers; the best option for all borrowers

C$.$ the right choice for all prospective homebuyers, a rate banks can increase more than $5\%$ at a time

D$.$ has regular periodic payments; is an interest rate that cannot rise more than $2\%$ at a time

QUESTION $46$

What is an example of the advantages $($and disadvantages$)$ of leasing versus borrowing as & form of financing?

A$.$ You need to consider whether or not you are likely to stay within the mileage limits of the lease, as the mileage penalties can add significantly to your costs

B$.$ All of the answers apply.

C$.$ You need to compare the APR of the lease versus the APR of a car loan to determine the cheaper financing alternative

D$.$ The longer you intend to keep the car, the less sense it makes to lease.

Question $47$

The following are the leading economic indicators that are used to gauge the current economic cycle and the outlook for the economy:

A$.$ GNP$,$ GRE, and coupon rates

B$.$ Housing sales and affordable housing

C$.$ GDP$,$ inflation, unemployment and interest rates.

D$.$ NASDAQ Composite and Dow Jones Average

Question $48$

Select the sentence that best defines the 'time value of money."

A$.$ When obtaining liquidity for your wealth creates transaction costs, opportunity costs, and risk

B$.$ How the passage of time affects the liquidity of money and thus its value.

C$.$ Refers to the cost of making a valuable trade.

D$.$ When you transform liquid wealth into a not$-$so$-$liquid wealth.