Test Bank For PFIN (Personal Finance), 8th Edition by Billingsley, Gitman & Joehnk's

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Test Bank For
PFIN (Personal Finance),
8th Edition by Billingsley, Gitman & Joehnk's,
All Chapters 1 to 15 Covered




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TEST BANK FOR
PFIN 8th Edition By Randall Billingsley, Lawrence Gitman, Michael Joehnk
Chapter 1-15 Answers Are At The End Of Each Chapter


Chapter 1

Indicate Whether The Statement Is True Or False.

1. Saving $400 For A Large, Flat-Screen TV Within The Next Four Months Is An Example Of A Short-Term Goal.
A. True
B. False


2. Commission-Based Financial Planners Charge Fees Based On The Complexity Of The Plan They Prepare.
A. True
B. False


3. In The United States, Salaries Tend To Be Higher In The Northeast And West Than In The South.
A. True
B. False


4. Setting Long- And Short-Term Career Goals Helps In Career Planning.
A. True
B. False


5. Financial Planning Takes Place In A Dynamic Economic Environment Created By The Actions Of The Government,
Business, And Consumers.
A. True
B. False


6. You Should Discuss Your Financial Goals And Attitudes Toward Money With Your Partner.
A. True
B. False


7. Accumulating Wealth For Later Years Is Called Estate Planning.
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 Regarding Money Matters.
a. True



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b. False

9. Tax Plans Are Closely Tied To Investment Plans.
A. True
B. False


10. Recessions And Financial Crises Will Always Result In Job Loss.
A. True
B. False


11. The Longer You Wait To Begin Retirement Planning, The Less You Are Likely To Have In Your Retirement Fund.
A. True
B. False


12. Career Plans Should Not Be Changed After Long- And Short-Term Career Goals Are Set.
A. True
B. False


13. You Should Limit Your Spending To No More Than 20 Percent More Than What You Earn.
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 Consume Is 80 Percent.
A. True
B. False


15. The Most Effective Way To Achieve Financial Objectives Is Through Personal Financial Planning.
A. True
B. False


16. Tangible (Physical) Assets Are Earning Assets That Are Held For The Returns They Promise.
A. True
B. False


17. Two People With Significantly Different Incomes Can Have Equal Average Propensities To Consume
Because Of Differences In Their Standard Of Living.
A. True
B. False


18. The Need For Financial Planning Declines As Your Income Increases.
A. True
B. False

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19. Retirement Planning Includes Taking Advantage Of And Managing Employer-Sponsored Benefits.
A. True
B. False


20. Geographic Factors Affect Your Earning Power.
A. True
B. False


21. Fee-Only Financial Planners Earn Commissions For The Products They Sell.
A. True
B. False


22. Marital Status Affects The Income Level Of Individuals.
A. True
B. False


23. Your Purchase, Saving, Investment, And Retirement Plans And Decisions Are Not Influenced By The Present State
Of The Economy.
A. True
B. False


24. For Employees Of Large Firms, Managing Employee Benefits Is An Important Part Of Financial Planning.
A. True
B. False


25. Short-Term Planning Should Include Creating And Maintaining An Emergency Fund With At Least Six Months’
Worth Of Income.
A. True
B. False


26. The Federal Government Delegates Its Regulation Of Economic Activity Function To Businesses And Consumers.
A. True
B. False


27. The Support Of Philanthropic Organizations Is A Material Item That Contributes To Our Quality Of Life.
A. True
B. False


28. The Average Propensity To Consume Is Commonly Viewed As A Key Determinant Of Standard Of Living.
A. True
B. False


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