NATIONAL ECONOMICS UNIVERSITY MID-TERM EXAM

PERSONAL FINANCIAL PLANNING

COURSE

Venue:

Duration: 90 minutes

Question 1: These statements are True or False? (30 marks, 2.5 score/each correct answer)
1.1. A financial plan is an informal report that analyzes past financial decisions.
1.2. Borrowers is less likely to be harmed by inflation.
1.3. A budget is a record of how a person or family has spent their money.
1.4. A cash flow statement uses this equation: Assets - Liabilities = Net worth.
1.5. Checking account balance is a liquid asset.
1.6. The information gathered from your loan application and the credit bureau establishes your credit
rating.
1.7. Consumer credit refers to the use of debit cards for personal needs.
1.8. Using the Rule of 72, with the value of land in an area is increasing 12.5 percent a year, it will
take 5.8 years for property values to double.
1.9. Using the Rule of 72, at an annual interest rate of 5.75 percent, it will take 15 years for savings to
double.
1.10. Purchasing a car is an example of a durable-product goal.
1.11. Opportunity costs refer to money already spent.
1.12. The problem of bankruptcy is associated with overuse and misuse of credit in the borrowing
component of financial planning.

Question 2: Assignments (30 marks)

2.1. (10 score) Describe some common money management mistakes that can cause long-term financial
concerns?
2.2. (20 scores) Create your own financial planning for next year, 5-year, 10-year, and when you
retire.
Question 3: Exercises (40 marks)
3.1. (20 scores)
Use the following items to determine the total assets, total liabilities, net worth, total cash
inflows, and total cash outflows. What is the problem with this person’s personal finance
situation?
Unit: US$
8 4,2
Rent for the month Monthly take-home salary
80 50
4 1,4
Spending for food Cash in checking account
90 00
2,5 3,5
Savings account balance Balance of educational loan
50 80
11,0 1
Current value of automobile Telephone bill paid for month
00 50
3,5 1
Credit card balance Loan payment
00 40
3 15,0
Auto insurance Household possessions
50 00
2,8 1
Video equipment Payment for electricity
00 00
2 1
Lunches/parking at work Donations
20 80
1,5 9
Personal computer Value of stock investment
00 50
2,4 2,5
Clothing purchase Restaurant spending
00 00

3.2. (20 scores)

Consider Minh’s budget worksheet for March, and then answer the questions:
Unit: US$

Income Spending
Date Source Amount Date Purpose Amount

7/3 Wages 850.5 3/3 New clothes 180.5

9/3 Birthday gift 55.7 12/3 Motobike insurance 125.7
21/3 Wages 660.5 15/3 Rent 380.9
23/3 Part-time job for 23/3 Credit card bill
120.5 380.5
Circle K
30/3 Savings interest 25.7 25/3 Telephone bill 25.5
26/3 Grocerries 280.7
29/3 Doctor’s visit 150
a. How much was Minh able to save in March?
b. Which sources of her income may not be the same from month to month?
c. Which types of spending might not be the same from month to month?
d. Why would a series of short-term budget worksheets be needed to develop a long-term
budget?