Test Bank
Personal Financial Planning
By Randy Billingsley
16th Edition
,Table Of Content
1. Understanding The Financial Planning Process.
2. Developing Your Financial Statements And Plans.
3. Preparing Your Taxes.
4. Managing Your Cash And Savings.
5. Making Automobile And Housing Decisions.
6. Using Credit.
7. Using Consumer Loans.
8. Insuring Your Life.
9. Insuring Your Health.
10. Protecting Your Property.
11. Investment Planning.
12. Investing In Stocks And Bonds.
13. Investing In Mutual Funds And Real Estate.
14. Planning For Retirement.
15. Preserving Your Estate.
,Chapter 1—Understanding The Financial Planning Process
TRUE/FALSE
1. Standard Of Living Is Defined As The Necessities, Comforts, And Luxuries Desired By An Individual Or
Group.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Knowledge
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.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Knowledge
3. A Good Financial Plan Completed When One Is In Their 30s Will Typically Last A Lifetime.
ANS: F PTS: 1 DIF: Challenging OBJ: LO: 1-2
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Synthesis
4. Financial Planning Is A Continuing, Life-Long Process.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
5. Financial Planning Can Improve Your Standard Of Living.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
6. Current Consumption Is Inversely Related To Saving For The Future.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Analysis
7. About 20% Of Americans Say Retirement Planning Is Their Most Pressing Financial Concern.
, ANS: F PTS: 1 DIF: Moderate OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Knowledge
8. The Most Effective Way To Achieve Financial Objectives Is Through Financial Planning.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
9. Defining Financial Goals Is An Important First Step In Personal Financial Planning Process.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
10. Two Persons With Equal Average Propensities To Consume Will Not Necessarily Have Equal
Standards Of Living Because Of Differences In Income.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Evaluation
11. The Need For Financial Planning Declines As Your Income Increases.
ANS: F PTS: 1 DIF: Moderate OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Synthesis
12. Current Consumption Effects Future Consumption.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Analysis
13. A Person Who Has $2,000 Monthly Income And Spends $1,800 Monthly Has An Average
Propensity To Consume Of 90%.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Evaluation
14. A Person Making $35,000 And Spending $30,800 Has An Average Propensity To Consume Of 80%.
ANS: F PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Evaluation
15. Most Families Find It Difficult To Discuss Money Matters.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2
Personal Financial Planning
By Randy Billingsley
16th Edition
,Table Of Content
1. Understanding The Financial Planning Process.
2. Developing Your Financial Statements And Plans.
3. Preparing Your Taxes.
4. Managing Your Cash And Savings.
5. Making Automobile And Housing Decisions.
6. Using Credit.
7. Using Consumer Loans.
8. Insuring Your Life.
9. Insuring Your Health.
10. Protecting Your Property.
11. Investment Planning.
12. Investing In Stocks And Bonds.
13. Investing In Mutual Funds And Real Estate.
14. Planning For Retirement.
15. Preserving Your Estate.
,Chapter 1—Understanding The Financial Planning Process
TRUE/FALSE
1. Standard Of Living Is Defined As The Necessities, Comforts, And Luxuries Desired By An Individual Or
Group.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Knowledge
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.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Knowledge
3. A Good Financial Plan Completed When One Is In Their 30s Will Typically Last A Lifetime.
ANS: F PTS: 1 DIF: Challenging OBJ: LO: 1-2
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Synthesis
4. Financial Planning Is A Continuing, Life-Long Process.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
5. Financial Planning Can Improve Your Standard Of Living.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
6. Current Consumption Is Inversely Related To Saving For The Future.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Analysis
7. About 20% Of Americans Say Retirement Planning Is Their Most Pressing Financial Concern.
, ANS: F PTS: 1 DIF: Moderate OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Knowledge
8. The Most Effective Way To Achieve Financial Objectives Is Through Financial Planning.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
9. Defining Financial Goals Is An Important First Step In Personal Financial Planning Process.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Comprehension
10. Two Persons With Equal Average Propensities To Consume Will Not Necessarily Have Equal
Standards Of Living Because Of Differences In Income.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Evaluation
11. The Need For Financial Planning Declines As Your Income Increases.
ANS: F PTS: 1 DIF: Moderate OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Synthesis
12. Current Consumption Effects Future Consumption.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Analysis
13. A Person Who Has $2,000 Monthly Income And Spends $1,800 Monthly Has An Average
Propensity To Consume Of 90%.
ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Evaluation
14. A Person Making $35,000 And Spending $30,800 Has An Average Propensity To Consume Of 80%.
ANS: F PTS: 1 DIF: Challenging OBJ: LO: 1-1
NAT: BUSPROG: Reflective Thinking STA: DISC: Financial Markets And Interest
Rates KEY: Bloom's: Evaluation
15. Most Families Find It Difficult To Discuss Money Matters.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2
