Test Bank for Focus on Personal Finance 12th Edition by Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa Hart || ISBN-13 ‎978-1259720680 || Chapter 1-19 | All Chapters Guide A+

Test Bank for Focus on Personal Finance 12th Edition by Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa Hart || ISBN-13 ‎978-1259720680 || All Chapters 1-19 A+ Chapter 01 Testbank - Static Student: ___________________________________________________________________________ 1. Increased demand for a product or service will usually result in lower prices for the item. True False 2. Inflation reduces the buying power of the dollar. True False 3. Lenders benefit more than borrowers in times of high inflation. True False 4. Economics is the study of using money to achieve financial goals. True False 5. A decrease in the demand for a product or service may result in unemployment from staff reduction. True False 6. Developing and using a budget is part of the "obtaining" component of financial planning. True False 7. A financial plan is another name for a budget. True False 8. Planning to buy a car is an example of an intangible goal. True False 9. Opportunity costs refer to what a person gives up when making a choice. True False 10. Personal opportunity costs refer to time, effort, and health that are given up when a decision is made. True False 11. Time value of money refers to changes in consumer spending when inflation occurs. True False 12. Interest on savings is calculated by multiplying the principal amount times the opportunity cost times the annual interest rate. True False 13. Present value is also referred to as compounding. True False 14. Opportunity costs may be viewed only in terms of financial resources. True False 15. Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders, excluding items produced with foreign resources. True False 16. Trade balance is defined as the difference between a country's exports and its imports. True False 17. The main goal of personal financial planning is managing your money to: A. save and invest for future needs. B. reduce a person's tax liability. C. achieve personal economic satisfaction. D. spend to achieve financial objectives. E. save, spend, and borrow based on current needs. 18. Higher prices are likely to result from: A. lower demand by consumers. B. increased production by business. C. lower interest rates. D. increased demand by consumers without increased supply. E. an increase in the supply of a product.