Personal Financial Planning 13th Edition by Lawrence J. Gitman - Test Bank

,Chapter 01—Understanding Personal Finance
True / False

1. Financial literacy is your knowledge of facts, concepts, principles, and technological tools that are fundamental to be
smart about money.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
DATE CREATED: 9/20/2017 8:39 AM
DATE MODIFIED: 9/25/2017 12:24 AM

2. Being financially responsible is being knowledgeable about facts, concepts, principles, and technological tools that are
fundamental to be smart about money.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: being financially responsibility means that you are accountable for your financial well-being
and strive to make good financial decisions 1.1
DATE CREATED: 9/20/2017 8:41 AM
DATE MODIFIED: 9/25/2017 12:31 AM

3. Personal finance is the study of personal and family resources considered important in achieving financial success.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
Copyright Cengage Learning. Powered by Cognero. Page 1

,Chapter 01—Understanding Personal Finance

NOTES: NOTES: 1.1
DATE CREATED: 9/20/2017 8:45 AM
DATE MODIFIED: 9/25/2017 12:27 AM

4. Financial success is marked by having high wealth.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False
HAS VARIABLES: False
KEYWORDS: Bloom’s: Understanding
OTHER: Analytic
NOTES: financial success is the achievement of financial aspirations that are desired, planned, or
attempted. 1.1
DATE CREATED: 9/20/2017 8:47 AM
DATE MODIFIED: 9/25/2017 12:32 AM

5. Financial security is marked by having high income.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False
HAS VARIABLES: False
KEYWORDS: Bloom’s: Understanding
OTHER: Analytic
NOTES: financial security provides the comfortable feeling that your financial resources will be
adequate to fulfill any needs you have as well as most of your wants. 1.1
DATE CREATED: 9/20/2017 9:17 AM
DATE MODIFIED: 9/25/2017 12:32 AM

6. By saving and investing, people are much more likely to have funds available for future consumption.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False

Copyright Cengage Learning. Powered by Cognero. Page 2

, Chapter 01—Understanding Personal Finance

HAS VARIABLES: False
KEYWORDS: Bloom’s: Understanding
OTHER: Analytic
NOTES: 1.1
DATE CREATED: 9/20/2017 9:27 AM
DATE MODIFIED: 9/25/2017 12:33 AM

7. One's standard of living comprises all his or her current consumption.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False
HAS VARIABLES: False
KEYWORDS: Bloom’s: Understanding
OTHER: Analytic
NOTES: current consumption is one's level of living. Standard of living is what you aspire to
achieve. 1.1
DATE CREATED: 9/20/2017 9:28 AM
DATE MODIFIED: 9/25/2017 12:33 AM

8. Your standard of living is where you would like to be and your level of living is where you actually are.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Recognize the keys to achieving financial success
QUESTION TYPE: True / False
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 1.1
DATE CREATED: 9/20/2017 9:30 AM
DATE MODIFIED: 9/25/2017 12:34 AM

9. You cannot build financial security or wealth unless you spend less than you earn.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate

Copyright Cengage Learning. Powered by Cognero. Page 3