Personal Finance 7th Canadian Edition by Jack Kapoor - Test Bank

,Chapter 01 - Personal Financial Planning: An Introduction


Chapter 01
Personal Financial Planning: An Introduction




True / False Questions


1. Analyzing your current financial position is a part of the first stage of the financial planning
process.
FALSE



Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Analyze the process for making personal financial decisions.
Topic: 01-02 The Financial Planning Process



2. Developing financial goals is the first step in the financial planning process.
TRUE



Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Analyze the process for making personal financial decisions.
Topic: 01-02 The Financial Planning Process



3. Risks associated with most financial decisions are fairly easy to measure.
FALSE



Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Analyze the process for making personal financial decisions.
Topic: 01-02 The Financial Planning Process




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,Chapter 01 - Personal Financial Planning: An Introduction




4. The financial planning process is complete once you implement your financial plan.
FALSE



Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Analyze the process for making personal financial decisions.
Topic: 01-02 The Financial Planning Process



5. Intermediate goals are usually achieved within the next year or so.
TRUE



Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Develop personal financial goals.
Topic: 01-09 Developing Personal Financial Goals



6. Planning to buy a house is an example of a durable product goal.
FALSE



Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Develop personal financial goals.
Topic: 01-09 Developing Personal Financial Goals



7. Household size is a major influence on personal financial planning decisions.
TRUE



Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Develop personal financial goals.
Topic: 01-09 Developing Personal Financial Goals




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, Chapter 01 - Personal Financial Planning: An Introduction




8. Simple interest is the interest computed based on the principle, excluding previously earned
interest.
TRUE



Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Assess economic factors that influence personal financial planning.
Topic: 01-13 The Influence of Economic Factors on Personal Financial Planning



9. Increased demand for a product or service will usually result in lower prices for the item.
FALSE



Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Assess economic factors that influence personal financial planning.
Topic: 01-13 The Influence of Economic Factors on Personal Financial Planning



10. Inflation reduces the buying power of money.
TRUE



Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Assess economic factors that influence personal financial planning.
Topic: 01-13 The Influence of Economic Factors on Personal Financial Planning



11. Lenders benefit less than borrowers in times of high inflation.
TRUE



Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Assess economic factors that influence personal financial planning.
Topic: 01-13 The Influence of Economic Factors on Personal Financial Planning




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