PFM Global Chapter 3

Which of the following document can be referred to know about the inflow and outflow of cash source of income spending saving and investing pattern of client?

Which of the following is included in statement of financial position?

Which of the following can be a fixed outflow?

Where would dividends that are immediately reinvested be shown on a cash flow statement?

Which of the following is not an example of collecting a client’s quantitative information?

The focus of any financial management strategy will be on helping the client:

The first step in the financial management process is:

Your client is considering the purchase of a seven-year term deposit for $150000 that pays an annual nominal interest rate of 2.65% compounded quarterly. The maturity value of the term deposit is most likely closest to:

Your client has an open-end lease for a car and will purchase the car at the end of the five-year lease period for $7800. Using an annual nominal interest assumption of 5.25% compounded annually calculate the present value of the $7800 that will be paid in five years’ time.

Your client has invested $8000 in a term deposit that will mature in exactly 8 years’ time from today. The term deposit pays 4.8% annual interest compounded once each year. The maturity value of the term deposit is most likely closest to:

Which of the following is most likely to be considered a fixed cash outflow?

In case of multiple goals and limited time and money a financial professional can only provide guidance to the client, who must make the choice to resolve the conflicting cash flow demands

A financial professional can help a client in resolving conflicting cash flow demand by identifying current cash flow demands, the financial professional will be able to identify those that conflict. From there, the financial professional, working closely with the client, needs to evaluate options. The primary tool for this evaluation is a clear articulation of the client’s goals. Once identified and well-stated (which includes assigning time horizons and cost expectations), goals must be prioritized. Goal prioritization usually involves various levels of compromise