Question

Which of the following statements concerning cash flow planning is correct?

		The goal is to maximize net cash flow.
		The goal should be to invest for the future, rather than maintaining current lifestyle.
		The goal should be to identify strengths and weaknesses in the client’s cash flows.
		The goal is to optimize net cash flow. 2. All the following are advantages of budgeting, EXCEPT: It helps reveal inefficient uses of resources. It fosters creativity and judicious risk-taking. It provides a way of measuring progress toward goals. It heightens awareness of and attention to the need to set financial goals. 3. Robert and Jennifer are looking to refinance their $400,000 mortgage. Which of the following mortgages will allow them to pay the smallest monthly payment this year if they all charge a 5% interest rate? 30-year standard mortgage 30-year biweekly mortgage 30-year balloon mortgage 30-year adjustable rate mortgage 4. Banks will typically grant home equity loans or lines of credit up to what loan-to-value percentage? 20 percent 40 percent 60 percent 80 percent 5. Chase, age 26, is just beginning his career as a computer analysts after completing graduate school. He is engaged and planning to purchase a home soon after marrying his college sweetheart. His life stage is somewhat typical for someone in the _____ life stage. 1 2 3 4 6. Which of the following are appropriate investments for Logan’s emergency fund assets?               I         Checking account             II         Money market accounts            III         Short-term certificates of deposit            IV         U.S. Treasury bills I and III only II and IV only II and III only I, II, III, and IV

Answer 1

The correct answer is:- The goal is to optimize net cash flow.

Explanation:- Cash-flow planning involves identifying courses of action that will help optimize net discretionary cash flow.

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The correct answer is :- It fosters creativity and judicious risk-taking.

Explanation:- The purposes of Budgeting is to match income and expenses, accomplish objectives , Plan personnel , make purchasing decisions , time inflows and outflows, delegate authority , Plan for the future , evaluate accomplishments.

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The correct answer is

Explanation:- Balloon mortgages are loans backed by real estate that require only an interest only payment or another token payment for a period of time and at the end of which the entire amount becomes due and payable. The biggest advantage of a balloon mortgage is the reduction in the monthly payments on the mortgage loan.

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The correct answer is 80 percent

Explanation:- Home-equity loans are generally restricted to between 70 and 80 percent of a home's appraised value.