Test Bank for Personal Financial Planning,
16th Edition by Randy Billingsley, Lawrence
Gitman, Michael JoehnkAll Chapters 1-15|
LATEST 2025 A+
, TABLE OF CONTENTS
Part I: FOUNDATIONS OF FINANCIAL PLANNING.
1. Understanding the Financial Planning Process.
2. Developing Your Financial Statements and Plans.
3. Preparing Your Taxes.
Part II: MANAGING BASIC ASSETS.
4. Managing Your Cash and Savings.
5. Making Automobile and Housing Decisions.
Part III: MANAGING CREDIT.
6. Using Credit.
7. Using Consumer Loans.
Part IV: MANAGING INSURANCE NEEDS.
8. Insuring Your Life.
9. Insuring Your Health.
10. Protecting Your Property.
Part V: MANAGING INVESTMENTS.
11. Investment Planning.
12. Investing in Stocks and Bonds.
13. Investing in Mutual Funds and Real Estate.
Part VI: RETIREMENT AND ESTATE PLANNING.
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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
, ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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%.
ANSWER: 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%.
ANSWER: 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.
ANSWER: T PTS: 1 DIF: Easy OBJ: LO: 1-2
16th Edition by Randy Billingsley, Lawrence
Gitman, Michael JoehnkAll Chapters 1-15|
LATEST 2025 A+
, TABLE OF CONTENTS
Part I: FOUNDATIONS OF FINANCIAL PLANNING.
1. Understanding the Financial Planning Process.
2. Developing Your Financial Statements and Plans.
3. Preparing Your Taxes.
Part II: MANAGING BASIC ASSETS.
4. Managing Your Cash and Savings.
5. Making Automobile and Housing Decisions.
Part III: MANAGING CREDIT.
6. Using Credit.
7. Using Consumer Loans.
Part IV: MANAGING INSURANCE NEEDS.
8. Insuring Your Life.
9. Insuring Your Health.
10. Protecting Your Property.
Part V: MANAGING INVESTMENTS.
11. Investment Planning.
12. Investing in Stocks and Bonds.
13. Investing in Mutual Funds and Real Estate.
Part VI: RETIREMENT AND ESTATE PLANNING.
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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
, ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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.
ANSWER: 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%.
ANSWER: 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%.
ANSWER: 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.
ANSWER: T PTS: 1 DIF: Easy OBJ: LO: 1-2
