TEST BANK FOR: For Personal Financial Planning 15th Edition By Randy Billingsley Latest Update Graded A+

TEST BANK FOR:
For Personal Financial Planning 15th Edition
By Randy Billingsley Latest Update
Graded A+

, Personal Financial Planning, 13th Edition, By J. Gitman,
Michael D. Joehnk, And R Billingsley.
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.