1.

(TCO A) Estate planning involves (Points : 4)

considering how your wealth can be most effectively passed on to heirs.

payment of all back taxes.

dissolution of all privately held corporations.

valuation and auctioning of your valuables.

planning retirements.

Question 2.2. (TCO A) The three key groups in the economic environment are (Points : 4)
government, regulation, and business.

government, consultants, and business.

consumers, economists, and business.

consumers, business, and managers.

government, consumers, and business.

Question 3.3. (TCO A) As the rate of inflation increases (Points : 4)

the cost of living goes down.

interest rates decrease.

pay checks decrease.

retirement plans have more difficulty meeting their goals.

purchasing power of a dollar increases.

Question 4.4. (TCO A) Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for
10 years. If you require a 7% return, what is the most (present value) you should pay for this investment? (Points : 4)
$49,179

$175,590

$201,000

$225,682

$250,000

Question 5.5. (TCO A) Marcus buys his wife a valuable painting for $20,000. He purchases it using $15,000 from his
savings and a $5,000 loan. How does this transaction affect Marcus's balance sheet? (Points : 4)
His assets increase.

His liabilities increase.

His net worth stays the same.

A and B

A, B, and C