PFP Ch19 questions and answers 2023

1. Why is knowledge of actual human behavior arguably more important for Personal Financial Planning (PFP) than for any other area of finance? A. Due to PFP's closeness to human actions. B. Due to PFP's emphasis on practicality. C. Due to the irrational nature of most personal finance decisions. D. Both a and b. E. Both b and c. 2. Which of the following is a component of behavioral financial planning operations? A. Estate planning. B. Traditional money planning and making more efficient financial decisions. C. Life planning. D. Both a and b. E. Both b and c. 3. Behavioral economics and behavioral finance: A. Consider the "ideal" person. B. Consider the "irrational" person. C. Examine people as they actually are. D. Both a and b. E. None of the above. 4. What is the goal of an assessment of behavioral financial planning? A. To understand and evaluate the contribution of behavioral analysis to PFP. B. To maximize revenue. C. To maximize profits. D. Both a and b E. None of the above.