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
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