Course Catalog > Financial Planning > Courses
Financial Planning Courses: Retirement

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Over a long period, inflation reduces what a person with a fixed income can afford to buy.
Choose wisely. There is only one correct answer.
True. Financial planners suggest that you begin saving for retirement as early as possible to offset the effects of inflation.
2.
Who has the best chance of getting the most from growth and compounding of one's money?
Choose wisely. There is only one correct answer.
A 20-year-old. As a rule, the younger you are when you start saving for your retirement, the more you will gain from the growth and compounding of your money.
3.
Social Security benefits are based on a number of things. Which of the following is NOT one of them?
Choose wisely. There is only one correct answer.
Your financial need. Financial need does not determine the benefits you get from Social Security. Your earnings and amount of time worked determine your benefits.
4.
When prices of goods and services rise over time and eat into your money's purchasing power, that is called _______ risk.
Choose wisely. There is only one correct answer.
Inflation. Inflation risk is the risk that rising prices will make it harder to buy the things you need.
5.
Which type of retirement account would you set up and manage on your own?
Choose wisely. There is only one correct answer.
Individual retirement account. IRAs are accounts for individuals and are typically not related to one's job.