,TESTBANK for Personal Finance, 2nd Edition by
Vickie L. Bajtelsmit
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,Chapter 1 Test Bank
To accompany Personal Finance, 2nd edition, by Vickie Bajtelsmit
Summary: 47 questions. 46 Multiple Choice | 1 Multiple Select
LO 1.1 8 17%
LO 1.2 14 30%
LO 1.3 5 11%
LO 1.4 8 17%
LO 1.5 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
Percentage Change Calculation #14
Percentage Change Calculation (with distractor) #15
Percentage Change Calculation (multiple yrs.) #16
Annual Percentage Change Calculation #17
Fee Calculation #34
Opportunity Cost Calculation #40
,1. Personal finance is a specialized area of study that focuses
A) exclusively on investments and retirement planning.
B) on financial management, household budgets, and investments.
C) exclusively on investment management and household budgets.
D) on individual and household financial decisions, such as budgeting, saving,
spending, tax planning, insurance, and investments.
Answer: D
Solution: Personal finance is a specialized area of study that focuses on
individual and household financial decisions, such as budgeting, saving,
spending, tax-planning, insurance, and investments.
Format: Multiple Choice
Title: Test Bank 1.1 Personal Financial Planning
Section: Why Study Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Easy
Bloomcode: Knowledge
AACSB: Knowledge
Expected Time to Complete: 1 minute
2. Critical to the success of building a comprehensive financial plan is that you
approach its creation in a logical order. The steps to success, in the correct order,
are as follows:
A) Secure basic needs, build and protect wealth, and establish a firm foundation.
B) Secure basic needs, establish a firm foundation, and build and protect wealth.
C) Build and protect wealth, establish a firm foundation, and secure basic needs.
D) Establish a firm foundation, secure basic needs, and build and protect wealth.
Answer: D
Solution: Critical to the success of building a comprehensive financial plan is that
you approach its creation in a logical order. The steps to success are: establish a
firm foundation, secure basic needs, and build and protect wealth.
Format: Multiple Choice
Title: Test Bank 1.1 Steps to a Comprehensive Financial Plan
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
3. The financial planning process includes five steps. Four of the steps are listed next:
• Analyze your current financial status.
• Implement your financial plan.
• Monitor your progress and revise your plan as needed.
• Organize your financial information and set short-term and long-term goals.
, What is the missing step?
A) Identify and evaluate alternative strategies for meeting your goals.
B) Understand the personal financial planning process.
C) Acquire the necessary decision-making skills and tools.
D) Build wealth and protection against emergencies.
Answer: A
Solution: The five steps in the financial planning process are as follows:
1. Organize your financial information and set short-term and long-term
goals.
2. Analyze your current financial status.
3. Identify and evaluate alternative strategies for achieving your goals.
4. Implement your financial plan.
5. Monitor your progress and revise your plan as needed.
Format: Multiple Choice
Title: Test Bank 1.1 The Five Steps in the Financial Planning Process
Section: The Personal Financial Planning Process
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
4. An effective financial plan must be adaptable to changing circumstances. Which
would not be a reason to take you back to Step 1 of the financial planning process?
A) Changes in economic conditions
B) Birth of a child
C) Purchase of life insurance
D) Marriage
Answer: C
Solution: Many changes will occur over the course of your life. Not only will
changes in your personal circumstances (a new job, marriage, and children)
affect your financial planning objectives and strategies but also may changes in
economic conditions necessitate a revision of your comprehensive financial plan.
Thus, revising your plan takes you continually back to the beginning of the
process again. Life insurance is a result of changing a financial plan.
Format: Multiple Choice
Title: Test Bank 1.1
Section: The Personal Financial Planning Process
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Application
AACSB: Reflective Thinking
, Expected Time to Complete: 1 minute
5. Personal financial planning does not include which of the following?
A) Buying insurance
B) Deciding which make and model of car to buy
C) Budgeting
D) Assessing attitude toward risk
Answer: B
Solution: Personal financial planning includes budgeting, savings, buying
insurance, and assessing attitudes toward risk. While determining the cheapest
form of financing and the opportunity cost associated with purchasing a car is
part of financial planning, the qualitative factors involved in the make and model
of a vehicle is not.
Format: Multiple Choice
Title: Test Bank 1.1 Personal Financial Planning
Section: Why Study Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 1 minute
6. Which is not a necessary activity in securing your basic needs?
A) Making purchase and credit decisions
B) Managing cash for liquidity and emergencies
C) Selecting financial institutions for checking and savings accounts
D) Investing to achieve long-term goals
Answer: D
Solution: Securing your basic needs is the second element of a comprehensive
financial plan. Making purchase and credit decisions, managing cash for liquidity
and emergencies, and selecting financial institutions for checking and savings
accounts are all activities necessary to completing this part of your plan, not long-
term investments.
Format: Multiple Choice
Title: Test Bank 1.1 Secure Your Basic Needs
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 1 minute
7. Which is not a necessary activity in establishing a firm foundation?
, A) Protecting income and wealth from losses
B) Acquiring necessary decision-making skills and tools
C) Understanding the personal financial planning process
D) Setting short-term and long-term goals
Answer: A
Solution: Establishing a firm foundation is the first element of a comprehensive
financial plan. Acquiring necessary decision-making skills and tools,
understanding the personal financial planning process, and setting short-term
and long-term goals are all activities necessary to completing this part of your
plan, not insurance protection.
Format: Multiple Choice
Title: Test Bank 1.1 Establishing a Firm Foundation
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
8. Which is not a necessary activity in building and protecting wealth?
A) Writing a will
B) Investing to achieve long-term goals
C) Buying property and liability insurance
D) Managing cash for liquidity and emergencies
Answer: D
Solution: Writing a will, investing to achieve long-term goals, protecting income
and wealth from losses, and buying property and liability insurance are all
activities necessary to completing this part of your plan, not cash/liquidity
management.
Format: Multiple Choice
Title: Test Bank 1.1 Build and Protect Wealth
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
9. As you build your financial plan, you’ll need to consider the unique characteristics of
your household that may influence spending and saving. Which of these factors is
not unique to your household?
A) Life cycle stage
B) Family makeup
C) Inflation and interest rates
D) Values and attitudes
, Answer: C
Solution: Factors unique to your household are your life cycle stage, family
makeup, and values and attitudes. While economic factors, such as inflation and
interest rates, are important considerations for everyone who is developing and
implementing financial plans.
Format: Multiple Choice
Title: Test Bank 1.2 Factors That Influence Financial Planning Decisions
Section: Factors That Influence Financial Planning Decisions
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 1 minute
10. If your ____ are larger than your _____, your wealth is negative.
A) expenses; debts
B) debts; assets
C) assets; debts
D) assets; income
Answer: B
Solution: If your debts are larger than your assets, your wealth is negative.
Format: Multiple Choice
Title: Test Bank 1.2 Life Cycle Factors
Section: Individual Characteristics and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
11. A person’s fundamental beliefs concerning what is important in life are referred to as
A) judgments.
B) values.
C) attitudes.
D) opinions.
Answer: B
Solution: Values are fundamental beliefs about what is important in life.
Format: Multiple Choice
Title: Test Bank 1.2 Fundamental Beliefs
Section: Individual Characteristics and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Easy
, Bloomcode: Knowledge
AACSB: Knowledge
Expected Time to Complete: 1 minute
12. When the consumer price index (CPI) increases,
A) you can buy goods and services cheaper.
B) the prices of goods and services are more expensive.
C) the value of the dollar is high.
D) you will earn less on your investments.
Answer: B
Solution: In the United States, inflation is typically measured by the change in the
CPI, which is a representative basket of more than 400 goods and services used
by urban households, including food, housing, consumer goods, gasoline, and
clothing. When the consumer price index (CPI) increases, the prices of goods
and services become more expensive.
Format: Multiple Choice
Title: Test Bank 1.2 CPI
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Application
AACSB: Analytic
Expected Time to Complete: 1 minute
13. As inflation _______, the spending power of money______.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; remains the same
Answer: C
Solution: Inflation refers to an increase in prices. As prices of goods and services
go up, the spending power of your money goes down; thus, a dollar will not
purchase as much as it previously did.
Format: Multiple Choice
Title: Test Bank 1.2 Inflation
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Application
AACSB: Analytic
Expected Time to Complete: 1 minute
14. Your salary was $32,000 in 2019. It increased to $35,000 in 2020. What was the
percentage increase in your salary from 2019 to 2020?
, A) 8.57%
B) 9.14%
C) 9.38%
D) 33.5%
Answer: C
New value−Old value
Solution: Percentage change = Old value
$35,000 − $32,000
Percentage change = = 0.0938, or 9.38%
$32,000
Format: Multiple Choice
Title: Test Bank 1.2 Percentage Change Calculation
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Analysis
AACSB: Analytic
Expected Time to Complete: 2 minutes
15. Your salary was $28,000 in 2018 and $30,000 in 2019. In 2020, your salary was
$34,000. What was the percentage increase in your salary from 2018 to 2020?
A) 7.14%
B) 11.76%
C) 14.29%
D) 21.43%
Answer: D
New value−Old value
Solution: Percentage change = Old value
$34,000 − $28,000
Percentage change = = 0.2143, or 21.43%
$28,000
Format: Multiple Choice
Title: Test Bank 1.2 Percentage Change Calculation
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Analysis
AACSB: Analytic
Expected Time to Complete: 2 minutes
Vickie L. Bajtelsmit
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
,Chapter 1 Test Bank
To accompany Personal Finance, 2nd edition, by Vickie Bajtelsmit
Summary: 47 questions. 46 Multiple Choice | 1 Multiple Select
LO 1.1 8 17%
LO 1.2 14 30%
LO 1.3 5 11%
LO 1.4 8 17%
LO 1.5 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
Percentage Change Calculation #14
Percentage Change Calculation (with distractor) #15
Percentage Change Calculation (multiple yrs.) #16
Annual Percentage Change Calculation #17
Fee Calculation #34
Opportunity Cost Calculation #40
,1. Personal finance is a specialized area of study that focuses
A) exclusively on investments and retirement planning.
B) on financial management, household budgets, and investments.
C) exclusively on investment management and household budgets.
D) on individual and household financial decisions, such as budgeting, saving,
spending, tax planning, insurance, and investments.
Answer: D
Solution: Personal finance is a specialized area of study that focuses on
individual and household financial decisions, such as budgeting, saving,
spending, tax-planning, insurance, and investments.
Format: Multiple Choice
Title: Test Bank 1.1 Personal Financial Planning
Section: Why Study Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Easy
Bloomcode: Knowledge
AACSB: Knowledge
Expected Time to Complete: 1 minute
2. Critical to the success of building a comprehensive financial plan is that you
approach its creation in a logical order. The steps to success, in the correct order,
are as follows:
A) Secure basic needs, build and protect wealth, and establish a firm foundation.
B) Secure basic needs, establish a firm foundation, and build and protect wealth.
C) Build and protect wealth, establish a firm foundation, and secure basic needs.
D) Establish a firm foundation, secure basic needs, and build and protect wealth.
Answer: D
Solution: Critical to the success of building a comprehensive financial plan is that
you approach its creation in a logical order. The steps to success are: establish a
firm foundation, secure basic needs, and build and protect wealth.
Format: Multiple Choice
Title: Test Bank 1.1 Steps to a Comprehensive Financial Plan
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
3. The financial planning process includes five steps. Four of the steps are listed next:
• Analyze your current financial status.
• Implement your financial plan.
• Monitor your progress and revise your plan as needed.
• Organize your financial information and set short-term and long-term goals.
, What is the missing step?
A) Identify and evaluate alternative strategies for meeting your goals.
B) Understand the personal financial planning process.
C) Acquire the necessary decision-making skills and tools.
D) Build wealth and protection against emergencies.
Answer: A
Solution: The five steps in the financial planning process are as follows:
1. Organize your financial information and set short-term and long-term
goals.
2. Analyze your current financial status.
3. Identify and evaluate alternative strategies for achieving your goals.
4. Implement your financial plan.
5. Monitor your progress and revise your plan as needed.
Format: Multiple Choice
Title: Test Bank 1.1 The Five Steps in the Financial Planning Process
Section: The Personal Financial Planning Process
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
4. An effective financial plan must be adaptable to changing circumstances. Which
would not be a reason to take you back to Step 1 of the financial planning process?
A) Changes in economic conditions
B) Birth of a child
C) Purchase of life insurance
D) Marriage
Answer: C
Solution: Many changes will occur over the course of your life. Not only will
changes in your personal circumstances (a new job, marriage, and children)
affect your financial planning objectives and strategies but also may changes in
economic conditions necessitate a revision of your comprehensive financial plan.
Thus, revising your plan takes you continually back to the beginning of the
process again. Life insurance is a result of changing a financial plan.
Format: Multiple Choice
Title: Test Bank 1.1
Section: The Personal Financial Planning Process
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Application
AACSB: Reflective Thinking
, Expected Time to Complete: 1 minute
5. Personal financial planning does not include which of the following?
A) Buying insurance
B) Deciding which make and model of car to buy
C) Budgeting
D) Assessing attitude toward risk
Answer: B
Solution: Personal financial planning includes budgeting, savings, buying
insurance, and assessing attitudes toward risk. While determining the cheapest
form of financing and the opportunity cost associated with purchasing a car is
part of financial planning, the qualitative factors involved in the make and model
of a vehicle is not.
Format: Multiple Choice
Title: Test Bank 1.1 Personal Financial Planning
Section: Why Study Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 1 minute
6. Which is not a necessary activity in securing your basic needs?
A) Making purchase and credit decisions
B) Managing cash for liquidity and emergencies
C) Selecting financial institutions for checking and savings accounts
D) Investing to achieve long-term goals
Answer: D
Solution: Securing your basic needs is the second element of a comprehensive
financial plan. Making purchase and credit decisions, managing cash for liquidity
and emergencies, and selecting financial institutions for checking and savings
accounts are all activities necessary to completing this part of your plan, not long-
term investments.
Format: Multiple Choice
Title: Test Bank 1.1 Secure Your Basic Needs
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 1 minute
7. Which is not a necessary activity in establishing a firm foundation?
, A) Protecting income and wealth from losses
B) Acquiring necessary decision-making skills and tools
C) Understanding the personal financial planning process
D) Setting short-term and long-term goals
Answer: A
Solution: Establishing a firm foundation is the first element of a comprehensive
financial plan. Acquiring necessary decision-making skills and tools,
understanding the personal financial planning process, and setting short-term
and long-term goals are all activities necessary to completing this part of your
plan, not insurance protection.
Format: Multiple Choice
Title: Test Bank 1.1 Establishing a Firm Foundation
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
8. Which is not a necessary activity in building and protecting wealth?
A) Writing a will
B) Investing to achieve long-term goals
C) Buying property and liability insurance
D) Managing cash for liquidity and emergencies
Answer: D
Solution: Writing a will, investing to achieve long-term goals, protecting income
and wealth from losses, and buying property and liability insurance are all
activities necessary to completing this part of your plan, not cash/liquidity
management.
Format: Multiple Choice
Title: Test Bank 1.1 Build and Protect Wealth
Section: Elements of a Comprehensive Financial Plan
Learning Objective: 1.1 Describe the personal financial planning process, and
explain how the elements of a comprehensive financial plan fit together.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
9. As you build your financial plan, you’ll need to consider the unique characteristics of
your household that may influence spending and saving. Which of these factors is
not unique to your household?
A) Life cycle stage
B) Family makeup
C) Inflation and interest rates
D) Values and attitudes
, Answer: C
Solution: Factors unique to your household are your life cycle stage, family
makeup, and values and attitudes. While economic factors, such as inflation and
interest rates, are important considerations for everyone who is developing and
implementing financial plans.
Format: Multiple Choice
Title: Test Bank 1.2 Factors That Influence Financial Planning Decisions
Section: Factors That Influence Financial Planning Decisions
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 1 minute
10. If your ____ are larger than your _____, your wealth is negative.
A) expenses; debts
B) debts; assets
C) assets; debts
D) assets; income
Answer: B
Solution: If your debts are larger than your assets, your wealth is negative.
Format: Multiple Choice
Title: Test Bank 1.2 Life Cycle Factors
Section: Individual Characteristics and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Comprehension
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
11. A person’s fundamental beliefs concerning what is important in life are referred to as
A) judgments.
B) values.
C) attitudes.
D) opinions.
Answer: B
Solution: Values are fundamental beliefs about what is important in life.
Format: Multiple Choice
Title: Test Bank 1.2 Fundamental Beliefs
Section: Individual Characteristics and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Easy
, Bloomcode: Knowledge
AACSB: Knowledge
Expected Time to Complete: 1 minute
12. When the consumer price index (CPI) increases,
A) you can buy goods and services cheaper.
B) the prices of goods and services are more expensive.
C) the value of the dollar is high.
D) you will earn less on your investments.
Answer: B
Solution: In the United States, inflation is typically measured by the change in the
CPI, which is a representative basket of more than 400 goods and services used
by urban households, including food, housing, consumer goods, gasoline, and
clothing. When the consumer price index (CPI) increases, the prices of goods
and services become more expensive.
Format: Multiple Choice
Title: Test Bank 1.2 CPI
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Application
AACSB: Analytic
Expected Time to Complete: 1 minute
13. As inflation _______, the spending power of money______.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; remains the same
Answer: C
Solution: Inflation refers to an increase in prices. As prices of goods and services
go up, the spending power of your money goes down; thus, a dollar will not
purchase as much as it previously did.
Format: Multiple Choice
Title: Test Bank 1.2 Inflation
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Application
AACSB: Analytic
Expected Time to Complete: 1 minute
14. Your salary was $32,000 in 2019. It increased to $35,000 in 2020. What was the
percentage increase in your salary from 2019 to 2020?
, A) 8.57%
B) 9.14%
C) 9.38%
D) 33.5%
Answer: C
New value−Old value
Solution: Percentage change = Old value
$35,000 − $32,000
Percentage change = = 0.0938, or 9.38%
$32,000
Format: Multiple Choice
Title: Test Bank 1.2 Percentage Change Calculation
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Analysis
AACSB: Analytic
Expected Time to Complete: 2 minutes
15. Your salary was $28,000 in 2018 and $30,000 in 2019. In 2020, your salary was
$34,000. What was the percentage increase in your salary from 2018 to 2020?
A) 7.14%
B) 11.76%
C) 14.29%
D) 21.43%
Answer: D
New value−Old value
Solution: Percentage change = Old value
$34,000 − $28,000
Percentage change = = 0.2143, or 21.43%
$28,000
Format: Multiple Choice
Title: Test Bank 1.2 Percentage Change Calculation
Section: Economic Factors and Your Financial Plan
Learning Objective: 1.2 Describe how individual characteristics and economic
factors influence personal financial planning.
Difficulty: Medium
Bloomcode: Analysis
AACSB: Analytic
Expected Time to Complete: 2 minutes
