TEST BANK FOR Personal Finance, 2nd Edition Vickie L. Bajtelsmit Chapter 1-14

TEST BANK FOR
Personal Finance, 2nd Edition Vickie L. Bajtelsmit
Chapter 1-14




ChapterT1
ToTaccompanyTPersonalTFinance,T2ndTedition,TbyTVickieTBajtels
mit

Summary:T 47Tquestions.T T 46TMultipleTChoiceT|T1TMultipleTSelect

LOT1.1 8 17%

LOT1.2 14 30%

LOT1.3 5 11%

LOT1.4 8 17%

LOT1.5 12 26%

47

, Easy 6 13%

Medium 40 85%

Hard 1 2%

47



Knowledge 6 13%

Comprehensive 18 38%

Application 17 36%

Analysis 6 13%

47



Calculations

PercentageTChangeTCalculation #14

PercentageTChangeTCalculationT(withTdistracto #15
r)
PercentageTChangeTCalculationT(multipleTyrs.) #16

AnnualTPercentageTChangeTCalculatio #17
n
FeeTCalculation #34

OpportunityTCostTCalculation #40


1. PersonalTfinanceTisTaTspecializedTareaTofTstudyTthatTfocuses
A) exclusivelyTonTinvestmentsTandTretirementTplanning.
B) onTfinancialTmanagement,ThouseholdTbudgets,TandTinvestments.
C) exclusivelyTonTinvestmentTmanagementTandThouseholdTbudgets.
D) onTindividualTandThouseholdTfinancialTdecisions,TsuchTasTbudgeting,Tsavi
ng,Tspending,TtaxTplanning,Tinsurance,TandTinvestments.

Answer:TD
Solution:TPersonalTfinanceTisTaTspecializedTareaTofTstudyTthatTfocuses
TonTindividualTandThouseholdTfinancialTdecisions,TsuchTasTbudgeting,T
saving,Tspending,Ttax-planning,Tinsurance,TandTinvestments.
Format:TMultipleTChoice
Title:TTestTBankT1.1TPersonalTFinancialTPlanningTSe
ction:TWhyTStudyTPersonalTFinancialTPlanning?
LearningTObjective:T1.1TDescribeTtheTpersonalTfinancialTplanningTprocess,Tand

, TexplainThowTtheTelementsTofTaTcomprehensiveTfinancialTplanTfitTtogether.
Difficulty:TEasyTBloomc
ode:TKnowledgeTAACS
B:TKnowledge
ExpectedTTimeTtoTComplete:T1Tminute

2. CriticalTtoTtheTsuccessTofTbuildingTaTcomprehensiveTfinancialTplanTisTthatTyouTa
pproachTitsTcreationTinTaTlogicalTorder.TTheTstepsTtoTsuccess,TinTtheTcorrectTor
der,TareTasTfollows:
A) SecureTbasicTneeds,TbuildTandTprotectTwealth,TandTestablishTaTfirmTfoundation.
B) SecureTbasicTneeds,TestablishTaTfirmTfoundation,TandTbuildTandTprotectT wealth.
C) BuildTandTprotectTwealth,TestablishTaTfirmTfoundation,TandTsecureTbasicTneeds.
D) EstablishTaTfirmTfoundation,TsecureTbasicTneeds,TandTbuildTandTprotectTwealth.

Answer:TD
Solution:TCriticalTtoTtheTsuccessTofTbuildingTaTcomprehensiveTfinancialTplanTisT
thatTyouTapproachTitsTcreationTinTaTlogicalTorder.TTheTstepsTtoTsuccessTare:Tes
tablishTaTfirmTfoundation,TsecureTbasicTneeds,TandTbuildTandTprotectTwealth.
Format:TMultipleTChoice
Title:TTestTBankT1.1TStepsTtoTaTComprehensiveTFinancialTPlan
TSection:TElementsTofTaTComprehensiveTFinancialTPlan
LearningTObjective:T1.1TDescribeTtheTpersonalTfinancialTplanningTprocess,TandT
explainThowTtheTelementsTofTaTcomprehensiveTfinancialTplanTfitTtogether.
Difficulty:TMediumTBloomco
de:TComprehensionTAACSB
:TComprehension
ExpectedTTimeTtoTComplete:T2Tminutes

3. TheTfinancialTplanningTprocessTincludesTfiveTsteps.TFourTofTtheTstepsTareTlistedTnext:

, • AnalyzeTyourTcurrentTfinancialTstatus.
• ImplementTyourTfinancialTplan.
• MonitorTyourTprogressTandTreviseTyourTplanTasTneeded.
• OrganizeTyourTfinancialTinformationTandTsetTshort-termTandTlong-termTgoals.

WhatTisTtheTmissingTstep?

A) IdentifyTandTevaluateTalternativeTstrategiesTforTmeetingTyourTgoals.
B) UnderstandTtheTpersonalTfinancialTplanningTprocess.
C) AcquireTtheTnecessaryTdecision-makingTskillsTandTtools.
D) BuildTwealthTandTprotectionTagainstTemergencies.

Answer:TA
Solution:TTheTfiveTstepsTinTtheTfinancialTplanningTprocessTareTasTfollows:
1. OrganizeTyourTfinancialTinformationTandTsetTshort-termTandTlong-
termTgoals.
2. AnalyzeTyourTcurrentTfinancialTstatus.
3. IdentifyTandTevaluateTalternativeTstrategiesTforTachievingTyourTgoals.
4. ImplementTyourTfinancialTplan.
5. MonitorTyourTprogressTandTreviseTyourTplanTasTneeded.

Format:TMultipleTChoice
Title:TTestTBankT1.1TTheTFiveTStepsTinTtheTFinancialTPlanningTProcessTS
ection:TTheTPersonalTFinancialTPlanningTProcess
LearningTObjective:T1.1TDescribeTtheTpersonalTfinancialTplanningTprocess,TandT
explainThowTtheTelementsTofTaTcomprehensiveTfinancialTplanTfitTtogether.
Difficulty:TMediumTBloomco
de:TComprehensionTAACSB
:TComprehension
ExpectedTTimeTtoTComplete:T2Tminutes

4. AnTeffectiveTfinancialTplanTmustTbeTadaptableTtoTchangingTcircumstances.TWhich
TwouldTnotTbeTaTreasonTtoTtakeTyouTbackTtoTStepT1TofTtheTfinancialTplanningTpro
cess?
A) ChangesTinTeconomicTconditions
B) BirthTofTaTchild
C) PurchaseTofTlifeTinsurance
D) Marriage

Answer:TC
Solution:TManyTchangesTwillToccurToverTtheTcourseTofTyourTlife.TNotTonlyTwillTc
hangesTinTyourTpersonalTcircumstancesT(aTnewTjob,Tmarriage,TandTchildren)Taf
fectTyourTfinancialTplanningTobjectivesTandTstrategiesTbutTalsoTmayTchangesTin
TeconomicTconditionsTnecessitateTaTrevisionTofTyourTcomprehensiveTfinancialTp
lan.TThus,TrevisingTyourTplanTtakesTyouTcontinuallyTbackTtoTtheTbeginningTofTt
heTprocessTagain.TLifeTinsuranceTisTaTresultTofTchangingTaTfinancialTplan.
Format:TMultipleTChoice
TTitle:TTestTBankT1.1
Section:TTheTPersonalTFinancialTPlanningTProcess