Test bank for personal finance 9th edition by arthur j keown
Chapters 1-17
1
Copyright © 2023 Pearson Education, Inc.
,TABLE OF CONTENT
PART I: FINANCIAL PLANNING
1. The Personal Financial Planning Process
2. Measuring Your Financial Health and Making a Plan
3. Understanding and Appreciating the Time Value of Money
4. Tax Planning and Strategies
PART II: MANAGING YOUR MONEY
5. Cash or Liquid Asset Management
6. Using Credit Cards: The Role of Open Credit
7. Student and Consumer Loans: The Role of Planned Borrowing
8. The Home and Automobile Decision
PART III: PROTECTING YOURSELF WITH INSURANCE
9. Life and Health Insurance
10. Property and Liability Insurance
PART IV: MANAGING YOUR INVESTMENTS
11. Investment Basics
12. Investing in Stocks
13. Investing in Bonds and Other Alternatives
14. Mutual Funds and Exchange-Traded Funds: An Easy Way to Diversify
PART V: LIFE CYCLE ISSUES
15. Retirement Planning
16. Estate Planning: Saving Your Heirs Money and Headaches
17. Financial Life Events: Fitting the Pieces Together
2
Copyright © 2023 Pearson Education, Inc.
,TEST BANK FOR
Personal Finance, 9th edition Keown
Chapter 1-17
Personal Finance: Turning Money Into Wealth, 9e (Keown)
Chapter 1 The Financial Planning Process
1.1 Facing Financial Challenges
1) Once a sound financial plan is in place, there should be no need to ever change it.
Answer: FALSE
Diff: 1
Topic: The Financial Planning Process
AACSB: Analytical Thinking
2) One purpose of financial planning is to help you legally reduce the amount of taxes you have to
pay on your earnings.
Answer: TRUE
Diff: 1
Topic: Financial Planning
AACSB: Analytical Thinking
3) When comparing two different investment opportunities the investor should always choose the
investment that minimizes the total amount of taxes paid.
Answer: FALSE
Diff: 2
Topic: Minimization of Taxes
AACSB: Analytical Thinking
4) Annual public school tuition and fees are three times more expensive than private school tuition
and fees.
Answer: FALSE
Diff: 2
Topic: Financial Challenges
AACSB: Analytical Thinking
5) Being financially secure involves balancing what you earn with
A) your investments.
B) what you spend.
C) your retirement plans.
D) your current level of debt.
Answer: B
Diff: 1
Topic: Financial Planning
AACSB: Analytical Thinking
3
Copyright © 2023 Pearson Education, Inc.
, 6) Financial planning might not help you earn more, but it can help you use the money you do earn
to achieve your
A) life's purpose.
B) dreams.
C) financial goals.
D) desired lifestyle.
Answer: C
Diff: 1
Topic: Financial Goals
AACSB: Analytical Thinking
7) Which statement is true about managing personal finances?
A) The ability to manage finances is a skill with which you are born.
B) Personal finance courses are commonly offered in high school.
C) Financial difficulties can be a major cause of marital problems.
D) Personal financial management is not a skill worth learning.
Answer: C
Diff: 2
Topic: Finance Company
AACSB: Analytical Thinking
8) In order for your financial plan to be realistic and attainable it needs to be based upon your
A) budget.
B) income level.
C) number of tax deductions, exemption, exclusions, and credits.
D) balance sheet.
E) none of the above.
Answer: B
Diff: 2
Topic: Financial Planning
AACSB: Analytical Thinking
9) Personal financial planning can help you to
A) deal with unplanned health issues.
B) minimize your tax payments to Uncle Sam.
C) minimize your chances of personal bankruptcy.
D) have enough money for a comfortable retirement.
E) all of the above.
Answer: E
Diff: 2
Topic: Financial Planning
AACSB: Analytical Thinking
4
Copyright © 2023 Pearson Education, Inc.
Chapters 1-17
1
Copyright © 2023 Pearson Education, Inc.
,TABLE OF CONTENT
PART I: FINANCIAL PLANNING
1. The Personal Financial Planning Process
2. Measuring Your Financial Health and Making a Plan
3. Understanding and Appreciating the Time Value of Money
4. Tax Planning and Strategies
PART II: MANAGING YOUR MONEY
5. Cash or Liquid Asset Management
6. Using Credit Cards: The Role of Open Credit
7. Student and Consumer Loans: The Role of Planned Borrowing
8. The Home and Automobile Decision
PART III: PROTECTING YOURSELF WITH INSURANCE
9. Life and Health Insurance
10. Property and Liability Insurance
PART IV: MANAGING YOUR INVESTMENTS
11. Investment Basics
12. Investing in Stocks
13. Investing in Bonds and Other Alternatives
14. Mutual Funds and Exchange-Traded Funds: An Easy Way to Diversify
PART V: LIFE CYCLE ISSUES
15. Retirement Planning
16. Estate Planning: Saving Your Heirs Money and Headaches
17. Financial Life Events: Fitting the Pieces Together
2
Copyright © 2023 Pearson Education, Inc.
,TEST BANK FOR
Personal Finance, 9th edition Keown
Chapter 1-17
Personal Finance: Turning Money Into Wealth, 9e (Keown)
Chapter 1 The Financial Planning Process
1.1 Facing Financial Challenges
1) Once a sound financial plan is in place, there should be no need to ever change it.
Answer: FALSE
Diff: 1
Topic: The Financial Planning Process
AACSB: Analytical Thinking
2) One purpose of financial planning is to help you legally reduce the amount of taxes you have to
pay on your earnings.
Answer: TRUE
Diff: 1
Topic: Financial Planning
AACSB: Analytical Thinking
3) When comparing two different investment opportunities the investor should always choose the
investment that minimizes the total amount of taxes paid.
Answer: FALSE
Diff: 2
Topic: Minimization of Taxes
AACSB: Analytical Thinking
4) Annual public school tuition and fees are three times more expensive than private school tuition
and fees.
Answer: FALSE
Diff: 2
Topic: Financial Challenges
AACSB: Analytical Thinking
5) Being financially secure involves balancing what you earn with
A) your investments.
B) what you spend.
C) your retirement plans.
D) your current level of debt.
Answer: B
Diff: 1
Topic: Financial Planning
AACSB: Analytical Thinking
3
Copyright © 2023 Pearson Education, Inc.
, 6) Financial planning might not help you earn more, but it can help you use the money you do earn
to achieve your
A) life's purpose.
B) dreams.
C) financial goals.
D) desired lifestyle.
Answer: C
Diff: 1
Topic: Financial Goals
AACSB: Analytical Thinking
7) Which statement is true about managing personal finances?
A) The ability to manage finances is a skill with which you are born.
B) Personal finance courses are commonly offered in high school.
C) Financial difficulties can be a major cause of marital problems.
D) Personal financial management is not a skill worth learning.
Answer: C
Diff: 2
Topic: Finance Company
AACSB: Analytical Thinking
8) In order for your financial plan to be realistic and attainable it needs to be based upon your
A) budget.
B) income level.
C) number of tax deductions, exemption, exclusions, and credits.
D) balance sheet.
E) none of the above.
Answer: B
Diff: 2
Topic: Financial Planning
AACSB: Analytical Thinking
9) Personal financial planning can help you to
A) deal with unplanned health issues.
B) minimize your tax payments to Uncle Sam.
C) minimize your chances of personal bankruptcy.
D) have enough money for a comfortable retirement.
E) all of the above.
Answer: E
Diff: 2
Topic: Financial Planning
AACSB: Analytical Thinking
4
Copyright © 2023 Pearson Education, Inc.
