Personal Financial Planning 14th Edition by Billingsley - Test Bank
2 views 0 purchase
Course
Finance - Test Bank
Institution
Finance - Test Bank
1. The federal personal income tax is a progressive tax.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: PFIN.BILL.17.3-1 - LO: 3-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills
STATE STANDARDS: Unit...
,Chapter 1—Understanding the Financial Planning Process
1. Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or family.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJEC PFIN.BILL.17.1-1 - LO: 1-1
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Remembering
2. Your average propensity to consume is the percentage of each dollar of income, on the average, that is spent for current
needs rather than savings.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJEC PFIN.BILL.17.1-1 - LO: 1-1
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Remembering
3. A good financial plan completed when one is in their 30s will typically last a lifetime.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJEC PFIN.BILL.17.1-2 - LO: 1-2
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Analyzing
4. Financial planning is a continuing, lifelong process.
a. True
b. False
Cengage Learning Testing, Powered by Cognero Page 1
,Chapter 1—Understanding the Financial Planning Process
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJEC PFIN.BILL.17.1-2 - LO: 1-2
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Understanding
5. The heart of sound financial planning is improved standard of living.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJEC PFIN.BILL.17.1-1 - LO: 1-1
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Understanding
6. Nearly 35% of Americans say retirement planning is their most pressing financial concern.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJEC PFIN.BILL.17.1-1 - LO: 1-1
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Remembering
7. The average American has less than $50,000 in savings.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
Cengage Learning Testing, Powered by Cognero Page 2
, Chapter 1—Understanding the Financial Planning Process
LEARNING OBJEC PFIN.BILL.17.1-1 - LO: 1-1
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Remembering
8. The most effective way to achieve financial objectives is through financial planning.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJEC PFIN.BILL.17.1-1 - LO: 1-1
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Understanding
9. Defining financial goals is an important first step in the personal financial planning process.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJEC PFIN.BILL.17.1-2 - LO: 1-2
TIVES:
NATIONAL STAND United States - BUSPROG: Reflective Thinking
ARDS:
STATE STANDARD United States - AK - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates
S: United States - KS - DISC: Investments
KEYWORDS: Bloom's: Understanding
10. Two persons with equal average propensities to consume will not necessarily have equal standards of living because
of differences in income.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJEC PFIN.BILL.17.1-1 - LO: 1-1
TIVES:
Cengage Learning Testing, Powered by Cognero Page 3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $22.65. You're not tied to anything after your purchase.
