Professional Financial Planners Should

question 38

Multiple Choice

Professional financial planners should

• A) assess their client's risk-and-return requirements on a one-time basis.
• B) explain the investment plan to the client.
• C) inform the client about the outcome of the plan.
• D) assess their client's risk-and-return requirements on a one-time basis, explain the investment plan to the client, and inform the client about the outcome of the plan.
• E) explain the investment plan to the client and inform the client about the outcome of the plan.

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Definitions:

Simple Spending Multiplier

A ratio that estimates the impact on aggregate output (or income) of a change in autonomous spending.

Net Taxes

The total taxes paid by an individual or business minus any government subsidies or refunds received.

Federal Government Spending

Expenditure by the national government on goods, services, and public projects to influence a nation's economy.

Aggregate Demand Curve

A visual diagram that illustrates the connection between the general price level within an economy and the aggregate demand for products and services.