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.

,Chapterc1—UnderstandingcthecFinancialcPlanningcProcess


TRUE/FALSE

1. Standardcofclivingciscdefinedcascthecnecessities,ccomforts,candcluxuriescdesiredcbycancindividualcorcgroup.

cANS:cc T PTS:ccc 1 DIF: Easy OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking STA:cc DISC:cFinancialcMarketscandcInterestcRates
KEY:cc Bloom's:cKnowledge

2. Yourcaveragecpropensityctocconsumeciscthecpercentagecofceachcdollarcofcincome,concthecaverage,cthatcis
c spentcforccurrentcneedscrathercthancsavings.



ANS:cc T PTS:ccc 1 DIF: Easy OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cKnowledge

3. Acgoodcfinancialcplanccompletedcwhenconeciscinctheirc30scwillctypicallyclastcaclifetime.c

ANS:cc F PTS:ccc 1 DIF: Challenging OBJ:ccc LO:c1-2
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cSynthesis

4. Financialcplanningciscaccontinuing,clife-longcprocess.

ANS:cc T PTS:ccc 1 DIF: Easy OBJ:ccc LO:c1-2
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cComprehension

5. Financialcplanningccancimprovecyourcstandardcofcliving.

ANS:cc T PTS:ccc 1 DIF: Easy OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cComprehension

6. Currentcconsumptionciscinverselycrelatedctocsavingcforcthecfuture.

ANS:cc T PTS:ccc 1 DIF: Challenging OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cAnalysis

7. Aboutc20%cofcAmericanscsaycretirementcplanningcisctheircmostcpressingcfinancialcconcern.

, ANS:cc F PTS:ccc 1 DIF: Moderate OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cKnowledge

8. Thecmostceffectivecwayctocachievecfinancialcobjectivesciscthroughcfinancialcplanning.

cANS:cc T PTS:ccc 1 DIF: Moderate OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cComprehension

9. Definingcfinancialcgoalsciscancimportantcfirstcstepcincpersonalcfinancialcplanningcprocess.c

ANS:cc T PTS:ccc 1 DIF: Easy OBJ:ccc LO:c1-2
NAT:cc BUSPROG:cReflectivecthinking STA:cc DISC:cFinancialcMarketscandcInterestcRates
KEY:cc Bloom's:cComprehension

10. Twocpersonscwithcequalcaveragecpropensitiesctocconsumecwillcnotcnecessarilychavecequalcstandardscof
c livingcbecausecofcdifferencescincincome.



ANS:cc T PTS:ccc 1 DIF: Challenging OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cEvaluation

11. Thecneedcforcfinancialcplanningcdeclinescascyourcincomecincreases.

ANS:cc F PTS:ccc 1 DIF: Moderate OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cSynthesis

12. Currentcconsumptionceffectscfuturecconsumption.

ANS:cc T PTS:ccc 1 DIF: Challenging OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cAnalysis

13. Acpersoncwhochasc$2,000cmonthlycincomecandcspendsc$1,800cmonthlychascancaveragecpropensitycto
c consumecofc90%.



ANS:cc T PTS:ccc 1 DIF: Challenging OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking
STA:cc DISC:cFinancialcMarketscandcInterestcRates
c KEY:cc Bloom's:cEvaluation

14. Acpersoncmakingc$35,000candcspendingc$30,800chascancaveragecpropensityctocconsumecofc80%.

cANS:cc F PTS:ccc 1 DIF: Challenging OBJ:ccc LO:c1-1
NAT:cc BUSPROG:cReflectivecthinking STA:cc DISC:cFinancialcMarketscandcInterestcRates
KEY:cc Bloom's:cEvaluation

15. Mostcfamiliescfindcitcdifficultctocdiscusscmoneycmatters.

, ANS:cc T PTS:ccc 1 DIF: Easy OBJ:ccc LO:c1-2