TEST BANK PERSONAL FINANCIAL PLANNING, 13TH EDITION, BY GITMAN, JOEHNK, AND BILLINGSLEY ALL CHAPTERS COVERED GRADED A+ 100% VERIFIED |LATEST UPDATE| |2025|

TEST BANK
Personal Financial Planning, 13th Edition,
by Gitman, Joehnk, and Billingsley.
All chapters covered.

,ChapterF1—UnderstandingFtheFFinancialFPlanningFProcess


TRUE/FALSE

1. StandardFofFlivingFisFdefinedFasFtheFnecessities,Fcomforts,FandFluxuriesFdesiredFbyFanFindividualForFgrou

p.F ANS:FF T PTS:FFF 1 DIF: Easy OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking STA:FF DISC:FFinancialFMarketsFandFInterestFRates
KEY:FF Bloom's:FKnowledge

2. YourFaverageFpropensityFtoFconsumeFisFtheFpercentageFofFeachFdollarFofFincome,FonFtheFaverage,Fthat
FisF spentFforFcurrentFneedsFratherFthanFsavings.



ANS:FF T PTS:FFF 1 DIF: Easy OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FKnowledge

3. AFgoodFfinancialFplanFcompletedFwhenFoneFisFinFtheirF30sFwillFtypicallyFlastFaFlifetim

e.F ANS:FF F PTS:FFF 1 DIF: Challenging OBJ:FFF LO:F1-2
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FSynthesis

4. FinancialFplanningFisFaFcontinuing,Flife-longFprocess.

ANS:FF T PTS:FFF 1 DIF: Easy OBJ:FFF LO:F1-2
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FComprehension

5. FinancialFplanningFcanFimproveFyourFstandardFofFliving.

ANS:FF T PTS:FFF 1 DIF: Easy OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FComprehension

6. CurrentFconsumptionFisFinverselyFrelatedFtoFsavingFforFtheFfuture.

ANS:FF T PTS:FFF 1 DIF: Challenging OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FAnalysis

7. AboutF20%FofFAmericansFsayFretirementFplanningFisFtheirFmostFpressingFfinancialFconcern.

, ANS:FF F PTS:FFF 1 DIF: Moderate OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FKnowledge

8. TheFmostFeffectiveFwayFtoFachieveFfinancialFobjectivesFisFthroughFfinancialFplannin

g.F ANS:FF T PTS:FFF 1 DIF: Moderate OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FComprehension

9. DefiningFfinancialFgoalsFisFanFimportantFfirstFstepFinFpersonalFfinancialFplanningFprocess

.F ANS:FF T PTS:FFF 1 DIF: Easy OBJ:FFF LO:F1-2
NAT:FF BUSPROG:FReflectiveFthinking STA:FF DISC:FFinancialFMarketsFandFInterestFRates
KEY:FF Bloom's:FComprehension

10. TwoFpersonsFwithFequalFaverageFpropensitiesFtoFconsumeFwillFnotFnecessarilyFhaveFequalFstandardsF
ofF livingFbecauseFofFdifferencesFinFincome.

ANS:FF T PTS:FFF 1 DIF: Challenging OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FEvaluation

11. TheFneedFforFfinancialFplanningFdeclinesFasFyourFincomeFincreases.

ANS:FF F PTS:FFF 1 DIF: Moderate OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FSynthesis

12. CurrentFconsumptionFeffectsFfutureFconsumption.

ANS:FF T PTS:FFF 1 DIF: Challenging OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FAnalysis

13. AFpersonFwhoFhasF$2,000FmonthlyFincomeFandFspendsF$1,800FmonthlyFhasFanFaverageFpropensityFt
oF consumeFofF90%.

ANS:FF T PTS:FFF 1 DIF: Challenging OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking
STA:FF DISC:FFinancialFMarketsFandFInterestFRate
sF KEY:FF Bloom's:FEvaluation

14. AFpersonFmakingF$35,000FandFspendingF$30,800FhasFanFaverageFpropensityFtoFconsumeFofF80

%.F ANS:FF F PTS:FFF 1 DIF: Challenging OBJ:FFF LO:F1-1
NAT:FF BUSPROG:FReflectiveFthinking STA:FF DISC:FFinancialFMarketsFandFInterestFRates
KEY:FF Bloom's:FEvaluation

15. MostFfamiliesFfindFitFdifficultFtoFdiscussFmoneyFmatters.

, ANS:FF T PTS:FFF 1 DIF: Easy OBJ:FFF LO:F1-2