Question Bank in line with Personal Financial Planning,Billingsley,14e

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

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: PFIN.BILL.17.1-1 - LO: 1-1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Remembering



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.
a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: PFIN.BILL.17.1-1 - LO: 1-1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Remembering

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

b. False

ANSWER: False

POINTS: 1

DIFFICULTY: Challenging

LEARNING OBJECTIVES: PFIN.BILL.17.1-2 - LO: 1-2

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Analyzing



4. Financial planning is a continuing, lifelong process.
a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: PFIN.BILL.17.1-2 - LO: 1-2

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Understanding



5. The heart of sound financial planning is improved standard of living.

, a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: PFIN.BILL.17.1-1 - LO: 1-1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Understanding



6. Nearly 35% of Americans say retirement planning is their most pressing financial concern.
a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: PFIN.BILL.17.1-1 - LO: 1-1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Remembering



7. The average American has less than $50,000 in savings.
a. True

, b. False

ANSWER: False

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: PFIN.BILL.17.1-1 - LO: 1-1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Remembering



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

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: PFIN.BILL.17.1-1 - LO: 1-1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

STATE STANDARDS: United States - AK - DISC: Financial Markets and Inte - DISC:
Financial Markets and Interest Rates
United States - KS - DISC: Investments

KEYWORDS: Bloom's: Understanding



9. Defining financial goals is an important first step in the personal financial planning process.
a. True

b. False