https://www.stuvia.com/
Test Bank For
Focus On Personal Finance
Author: Jack R. Kapoor
7th Edition
,https://www.stuvia.com/
TABLE OF CONTENTS
CHAPTER 1: Personal Financial Planning in Action
CHAPTER 1: APPENDIX Time Value of Money
CHAPTER 2: Money Management Skills
CHAPTER 2: APPENDIX Developing a Career Strategy
CHAPTER 3: Taxes in Your Financial Plan
CHAPTER 4: Financial Services: Savings Plans and Payment Accounts
CHAPTER 5: Consumer Credit: Advantages, Disadvantages, Sources, and Costs
CHAPTER 5: APPENDIX Education Financing, Loans, and Scholarships
CHAPTER 6: Consumer Purchasing and Wise Buying Strategies
CHAPTER 6: APPENDIX Consumer Agencies and Organizations
CHAPTER 7: Selecting and Financing Housing
CHAPTER 8: Home and Automobile Insurance
CHAPTER 9: Health and Disability Income Insurance
CHAPTER 10: Financial Planning with Life Insurance
CHAPTER 11: Investing Basics and Evaluating Bonds
CHAPTER 12: Investing in Stocks
CHAPTER 13: Investing in Mutual Funds
CHAPTER 14: Starting Early: Retirement and Estate Planning
,https://www.stuvia.com/
01
Student:
1. Personal Financial Planning Has The Main Goal Of:
A. Savings And Investing For Future Needs.
B. Reducing A Person's Tax Liability.
C. Managing Money To Achieve Personal Economic Satisfaction.
D. Spending To Achieve Financial Objectives.
E. Savings, Spending, And Borrowing Based On Current Needs.
2. The First Step Of The Financial Planning Process Is To
A. Develop Financial Goals.
B. Implement The Financial Plan.
C. Determine Your Current Personal And Financial Situation.
D. Evaluate And Revise Your Actions.
E. Create A Financial Plan Of Action.
3. Opportunity Cost Refers To:
A. Money Needed For Major Consumer Purchases.
B. The Trade-Off Of A Decision.
C. The Amount Paid For Taxes When A Purchase Is Made.
D. Current Interest Rates.
E. Evaluating Different Alternatives For Financial Decisions.
4. Increased Consumer Spending Will Usually Cause:
A. Lower Consumer Prices.
B. Reduced Employment Levels.
C. Lower Tax Revenues.
D. Lower Interest Rates.
E. Higher Employment Levels.
5. The Uncertainty Associated With Decision Making Is Referred To As:
A. Opportunity Cost.
B. Selection Of Alternatives.
C. Financial Goals.
D. Personal Values.
E. Risk.
6. Some Savings And Investment Choices Have The Potential For Higher Earnings. However, These May
Also Be Difficult To Convert To Cash When You Need The Funds. This Problem Refers To:
A. Inflation Risk
B. Interest Rate Risk
C. Income Risk
D. Personal Risk
E. Liquidity Risk
7. The Financial Planning Process Concludes With Efforts To:
A. Develop Financial Goals.
B. Create A Financial Plan Of Action.
C. Analyze Your Current Personal And Financial Situation.
D. Implement The Financial Plan.
E. Revaluate And Revise Your Actions.
,https://www.stuvia.com/
8. Changes In Income, Values, And Family Situation Make It Necessary To:
A. Develop Financial Goals
B. Implement The Financial Plan.
C. Evaluate And Revise Your Actions.
D. Analyze Your Current Personal And Financial Situation.
E. Create A Financial Plan Of Action.
9. As Jeanne Taillefer Plans To Set Aside Funds For Her Young Children's College Education, She Is Setting
A(N)
Goal.
A. Intermediate
B. Short Term
C. Long-Term
D. Intangible
E. Durable
10. Goals Relate To Personal Relationships, Health, And Education.
A. Short-Term
B. Intangible-Purchase
C. Consumable-Product
D. Durable-Product
E. Intermediate
11. Brad Opper Has A Goal Of "Saving $50 A Month For Vacation." Brad's Goal Lacks
A. Measurable Terms.
B. A Realistic Perspective.
C. Specific Actions.
D. A Tangible End.
E. A Time Frame.
12. Which Of The Following Goals Would Be The Easiest To Implement And Measure Its Accomplishment?
A. "Reduce Our Debt Payments."
B. "Save Funds For An Annual Vacation."
C. "Save $100 A Month To Create A $4,000 Emergency Fund."
D. "Clear Credit Card Debt
E. "Invest $2,000 A Year For Retirement."
13. The Present Value Of A Future Amount Will Decrease If .
I. The Discount Rate Increases
II. The Amount Occurs Closer In Time
III. The Compounding Frequency Increases
IV. Inflation Increases
A. I And Ii Only
B. I And Iii Only
C. Ii And Iii Only
D. Iii And Iv Only
E. I, Iii And Iv Only
14. Higher Prices Are Likely To Result
From:
A. Increased Spending By Consumers.
B. Increased Production By Business.
C. Lower Interest Rates.
D. Lower Demand By Consumers
E. An Increase In The Supply Of A Product.
Test Bank For
Focus On Personal Finance
Author: Jack R. Kapoor
7th Edition
,https://www.stuvia.com/
TABLE OF CONTENTS
CHAPTER 1: Personal Financial Planning in Action
CHAPTER 1: APPENDIX Time Value of Money
CHAPTER 2: Money Management Skills
CHAPTER 2: APPENDIX Developing a Career Strategy
CHAPTER 3: Taxes in Your Financial Plan
CHAPTER 4: Financial Services: Savings Plans and Payment Accounts
CHAPTER 5: Consumer Credit: Advantages, Disadvantages, Sources, and Costs
CHAPTER 5: APPENDIX Education Financing, Loans, and Scholarships
CHAPTER 6: Consumer Purchasing and Wise Buying Strategies
CHAPTER 6: APPENDIX Consumer Agencies and Organizations
CHAPTER 7: Selecting and Financing Housing
CHAPTER 8: Home and Automobile Insurance
CHAPTER 9: Health and Disability Income Insurance
CHAPTER 10: Financial Planning with Life Insurance
CHAPTER 11: Investing Basics and Evaluating Bonds
CHAPTER 12: Investing in Stocks
CHAPTER 13: Investing in Mutual Funds
CHAPTER 14: Starting Early: Retirement and Estate Planning
,https://www.stuvia.com/
01
Student:
1. Personal Financial Planning Has The Main Goal Of:
A. Savings And Investing For Future Needs.
B. Reducing A Person's Tax Liability.
C. Managing Money To Achieve Personal Economic Satisfaction.
D. Spending To Achieve Financial Objectives.
E. Savings, Spending, And Borrowing Based On Current Needs.
2. The First Step Of The Financial Planning Process Is To
A. Develop Financial Goals.
B. Implement The Financial Plan.
C. Determine Your Current Personal And Financial Situation.
D. Evaluate And Revise Your Actions.
E. Create A Financial Plan Of Action.
3. Opportunity Cost Refers To:
A. Money Needed For Major Consumer Purchases.
B. The Trade-Off Of A Decision.
C. The Amount Paid For Taxes When A Purchase Is Made.
D. Current Interest Rates.
E. Evaluating Different Alternatives For Financial Decisions.
4. Increased Consumer Spending Will Usually Cause:
A. Lower Consumer Prices.
B. Reduced Employment Levels.
C. Lower Tax Revenues.
D. Lower Interest Rates.
E. Higher Employment Levels.
5. The Uncertainty Associated With Decision Making Is Referred To As:
A. Opportunity Cost.
B. Selection Of Alternatives.
C. Financial Goals.
D. Personal Values.
E. Risk.
6. Some Savings And Investment Choices Have The Potential For Higher Earnings. However, These May
Also Be Difficult To Convert To Cash When You Need The Funds. This Problem Refers To:
A. Inflation Risk
B. Interest Rate Risk
C. Income Risk
D. Personal Risk
E. Liquidity Risk
7. The Financial Planning Process Concludes With Efforts To:
A. Develop Financial Goals.
B. Create A Financial Plan Of Action.
C. Analyze Your Current Personal And Financial Situation.
D. Implement The Financial Plan.
E. Revaluate And Revise Your Actions.
,https://www.stuvia.com/
8. Changes In Income, Values, And Family Situation Make It Necessary To:
A. Develop Financial Goals
B. Implement The Financial Plan.
C. Evaluate And Revise Your Actions.
D. Analyze Your Current Personal And Financial Situation.
E. Create A Financial Plan Of Action.
9. As Jeanne Taillefer Plans To Set Aside Funds For Her Young Children's College Education, She Is Setting
A(N)
Goal.
A. Intermediate
B. Short Term
C. Long-Term
D. Intangible
E. Durable
10. Goals Relate To Personal Relationships, Health, And Education.
A. Short-Term
B. Intangible-Purchase
C. Consumable-Product
D. Durable-Product
E. Intermediate
11. Brad Opper Has A Goal Of "Saving $50 A Month For Vacation." Brad's Goal Lacks
A. Measurable Terms.
B. A Realistic Perspective.
C. Specific Actions.
D. A Tangible End.
E. A Time Frame.
12. Which Of The Following Goals Would Be The Easiest To Implement And Measure Its Accomplishment?
A. "Reduce Our Debt Payments."
B. "Save Funds For An Annual Vacation."
C. "Save $100 A Month To Create A $4,000 Emergency Fund."
D. "Clear Credit Card Debt
E. "Invest $2,000 A Year For Retirement."
13. The Present Value Of A Future Amount Will Decrease If .
I. The Discount Rate Increases
II. The Amount Occurs Closer In Time
III. The Compounding Frequency Increases
IV. Inflation Increases
A. I And Ii Only
B. I And Iii Only
C. Ii And Iii Only
D. Iii And Iv Only
E. I, Iii And Iv Only
14. Higher Prices Are Likely To Result
From:
A. Increased Spending By Consumers.
B. Increased Production By Business.
C. Lower Interest Rates.
D. Lower Demand By Consumers
E. An Increase In The Supply Of A Product.
