TEST BANK FOR PFIN 8th Edition by Randall Billingsley, Lawrence Gitman, Michael Joehnk ISBN:978-0357988046 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!!NEW LATEST UPDATE!!!!

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TEST BANK FOR cn cn




PFIN 8th Edition by Randall Billingsley, Lawrence Gitman, Michael Joehnk
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Chapter 1-15 Answers are at the end of Each Chapter
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Indicate whether the statement is true or false.
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1. Saving $400 for a large, flat-screen TV within the next four months is an example of a short-term goal.
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a. True
b. False

2. Commission-based financial planners charge fees based on the complexity of the plan they prepare.
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a. True
b. False

3. In the United States, salaries tend to be higher in the Northeast and West than in the South.
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a. True
b. False

4. Setting long- and short-term career goals helps in career planning.
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a. True
b. False

5. Financial planning takes place in a dynamic economic environment created by the actions of the government, business,
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and consumers.
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a. True
b. False

6. You should discuss your financial goals and attitudes toward money with your partner.
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a. True
b. False

7. Accumulating wealth for later years is called estate planning.
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a. True
b. False

8. It is easy to change your partner’s financial style, so there is no need for financial planning to resolve conflicts
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regarding money matters. cn cn



a. True



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b. False

9. Tax plans are closely tied to investment plans.
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a. True
b. False

10. Recessions and financial crises will always result in job loss.
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a. True
b. False

11. The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.
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a. True
b. False

12. Career plans should not be changed after long- and short-term career goals are set.
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a. True
b. False

13. You should limit your spending to no more than 20 percent more than what you earn.
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a. True
b. False

14. Morgan has an annual income of $45,000 and spends $30,000 for current needs. Morgan’s average propensity to
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consume is 80 percent.
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a. True
b. False

15. The most effective way to achieve financial objectives is through personal financial planning.
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a. True
b. False

16. Tangible (physical) assets are earning assets that are held for the returns they promise.
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a. True
b. False

17. Two people with significantly different incomes can have equal average propensities to consume because of
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differences in their standard of living.
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a. True
b. False

18. The need for financial planning declines as your income increases.
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a. True
b. False

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19. Retirement planning includes taking advantage of and managing employer-sponsored benefits.
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a. True
b. False

20. Geographic factors affect your earning power.
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a. True
b. False

21. Fee-only financial planners earn commissions for the products they sell.
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a. True
b. False

22. Marital status affects the income level of individuals.
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a. True
b. False

23. Your purchase, saving, investment, and retirement plans and decisions are not influenced by the present state of the
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economy.
a. True
b. False

24. For employees of large firms, managing employee benefits is an important part of financial planning.
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a. True
b. False

25. Short-
term planning should include creating and maintaining an emergency fund with at least six months’ worth of income.
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a. True
b. False

26. The federal government delegates its regulation of economic activity function to businesses and consumers.
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a. True
b. False

27. The support of philanthropic organizations is a material item that contributes to our quality of life.
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a. True
b. False

28. The average propensity to consume is commonly viewed as a key determinant of standard of living.
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a. True
b. False


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