PERSONAL FINANCE 14TH EDITION BY JACK KAPOOR LES DLABAY ROBERT HUGHES MELISSA FULL QUESTIONS SOLUTIONS ALREADY PASSED TEST BANK

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PERSONAL FINANCE 14TH EDITION BY
TEST BANK LESPERSONAL


Test
JACK KAPOOR
FINANCE
HUGHES MELISSA
DLABAY ROBERT
14THFULL
BANK
EDITION

DLABAY ROBERT HUGHES
MELISSA UPDATED
QUESTIONSBY
SOLUTIONS ALREADY PASSED TEST
JACK KAPOOR LES



Bank
ACTUAL QUESTIONS WITH
VERIFIED SOLUTIONS


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Chapter 1. Personal Finance Basics and the Time Value of Money


Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Long-term financial security can be achieved through frugal living and wise investing.
⊚ true
⊚ false

2) An opportunity fund is when money is set aside to expand ones income and net worth, or can
be used to invest in oneself through higher education.
⊚ true
⊚ false

3) The purpose of a tariff, also known as an import tax, is to decrease the trade deficit, which
always has the effect intended.
⊚ true
⊚ false

4) Increased demand for a product or service will usually result in lower prices for the item.
⊚ true
⊚ false

5) Inflation reduces the buying power of the dollar.
⊚ true
⊚ false

6) Lenders benefit more than borrowers in times of high inflation.
⊚ true
⊚ false

7) Economics is the study of using money to achieve financial goals.
⊚ true
⊚ false

8) Reduced consumer spending may be caused by unemployment due to a layoff.
⊚ true
⊚ false

9) A financial plan is another name for a budget.
⊚ true
⊚ false




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Chapter 1. Personal Finance Basics and the Time Value of Money


10) Developing and using a budget is part of the "obtaining" component of financial planning.
⊚ true
⊚ false

11) Planning to buy a car is an example of an intangible-purchase goal.
⊚ true
⊚ false

12) Opportunity costs refer to what a person gives up when making a choice.
⊚ true
⊚ false

13) Personal opportunity costs refer to time, effort, and health that are given up when a decision
is made.
⊚ true
⊚ false

14) Time value of money refers to changes in consumer spending when inflation occurs.
⊚ true
⊚ false

15) Interest on savings is calculated by multiplying the principal amount times the opportunity
cost times the annual interest rate.
⊚ true
⊚ false

16) Present value is often referred to as compounding.
⊚ true
⊚ false

17) Present value computations are used to determine how much you need to deposit now so that
you can withdraw a specified amount for a set number of years.
⊚ true
⊚ false

18) Opportunity costs are viewed only in terms of financial resources.
⊚ true
⊚ false




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Chapter 1. Personal Finance Basics and the Time Value of Money


19) Gross domestic product (GDP) measures the total value of goods and services produced
within a country's borders, excluding items produced with foreign resources.
⊚ true
⊚ false

20) Estate planning arranges for the transfer of finances and valuables to others when incapacity,
illness, or death occurs.
⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
21) Which of the following are benefits to financial literacy?
A. Increased effectiveness in obtaining, using, and protecting financial resources
B. Expanded control of financial activities
C. Excessive debt, bankruptcy, and dependence on others for financial security
A) Only A
B) Only B
C) Only C
D) Only A and B
E) Only B and C

22) Personal financial activities involve which three main decision areas?
A) Spending, operating, and sharing
B) Spending, using, and operating
C) Operating, using, and saving
D) Balancing, investing, and budgeting
E) Spending, saving, and sharing

23) The main goal of personal financial planning is managing your money to:
A) save and invest for future needs.
B) reduce a person's tax liability.
C) achieve personal economic satisfaction.
D) spend to achieve financial objectives.
E) save, spend, and borrow based on current needs.




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