Test Bank - Personal Financial Planning ED.15 by Randy Billingsley, Lawrence J. Gitman & Michael D. Joehnk- Complete Elaborated and Latest Test Bank. ALL Chapters(1-15) included - Updated for 2026

Test Bank - Personal Financial Planning ED.15
by Randy Billingsley, Lawrence J. Gitman &
Michael D. Joehnk- Complete Elaborated and
Latest Test Bank. ALL Chapters(1-15) included
- Updated for 2026

Chapter 1—Understanding the Financial Planning Process




TRUE/FALSE


1. Standard of living is defined as the
necessities, comforts, and luxuries desired
by an individual or group.




ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1

NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Knowledge

, 2. Your average propensity to consume is the
percentage of each dollar of income, on the
average, that is spent for current needs
rather than savings.
3.

ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1

NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Knowledge

3. A good financial plan completed when one is
in their 30s will typically last a lifetime.
4.

ANS: F PTS: 1 DIF: Challenging OBJ: LO: 1-2

NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Synthesis

4. Financial planning is a continuing, life-
long process.
5.

ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2

,NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Comprehension

5. Financial planning can improve your
standard of living.
6.

ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1

NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Comprehension

6. Current consumption is inversely related to
saving for the future.
7.

ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1

NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Analysis

7. About 20% of Americans say retirement
planning is their most pressing financial
concern.
8.

ANS: F PTS: 1 DIF: Moderate OBJ: LO: 1-1

, NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Knowledge

8. The most effective way to achieve financial
objectives is through financial planning.
9.

ANS: T PTS: 1 DIF: Moderate OBJ: LO: 1-1

NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Comprehension

9. Defining financial goals is an important
first step in personal financial planning
process.
10.

ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2

NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets
and Interest Rates KEY: Bloom's: Comprehension

10. Two persons with equal average
propensities to consume will not necessarily
have equal standards of living because of
differences in income.
11.