Exam (elaborations)
Personal Finance 13Th Ed By Jack Kapoor - Test Bank
- Module
- Personal Finance
- Institution
- Personal Finance
Personal Finance 13Th Ed By Jack Kapoor - Test Bank
[Show more]
Content preview
,Personal Finance, 13e (Kapoor)Chapter 1 Personal Finance Basics and the Time Value of Money
1) Increased demand for a product or service will usually result in lower prices for the item.
Answer: FALSE
Difficulty: 1 Easy
Topic: Economic conditions and factors
Learning Objective: 01-02 Assess personal and economic factors that influence personal
financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
2) Inflation reduces the buying power of the dollar.
Answer: TRUE
Difficulty: 1 Easy
Topic: Economic conditions and factors
Learning Objective: 01-02 Assess personal and economic factors that influence personal
financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
3) Lenders benefit more than borrowers in times of high inflation.
Answer: FALSE
Difficulty: 3 Hard
Topic: Economic conditions and factors
Learning Objective: 01-02 Assess personal and economic factors that influence personal
financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
4) Economics is the study of using money to achieve financial goals.
Answer: FALSE
Difficulty: 2 Medium
Topic: Economic conditions and factors
Learning Objective: 01-02 Assess personal and economic factors that influence personal
financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
1
Copyright © 2020 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written onsent of McGraw-Hill Education.
,5) Reduced spending causes unemployment from staff reduction.
Answer: TRUE
Difficulty: 2 Medium
Topic: Economic conditions and factors
Learning Objective: 01-02 Assess personal and economic factors that influence personal
financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
6) A financial plan is another name for a budget.
Answer: FALSE
Difficulty: 2 Medium
Topic: Financial plan development
Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different
life situations.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
7) Developing and using a budget is part of the "obtaining" component of financial planning.
Answer: FALSE
Difficulty: 1 Easy
Topic: Components of Financial Planning
Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different
life situations.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
8) Planning to buy a car is an example of an intangible-purchase goal.
Answer: FALSE
Difficulty: 2 Medium
Topic: Financial Goals
Learning Objective: 01-03 Develop personal financial goals.
Bloom's: Understand
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
2
Copyright © 2020 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written onsent of McGraw-Hill Education.
, 9) Opportunity costs refer to what a person gives up when making a choice.
Answer: TRUE
Difficulty: 2 Medium
Topic: Opportunity Costs
Learning Objective: 01-04 Calculate time value of money to analyze personal financial
decisions.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
10) Personal opportunity costs refer to time, effort, and health that are given up when a decision
is made.
Answer: TRUE
Difficulty: 2 Medium
Topic: Opportunity Costs
Learning Objective: 01-04 Calculate time value of money to analyze personal financial
decisions.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
11) Time value of money refers to changes in consumer spending when inflation occurs.
Answer: FALSE
Difficulty: 2 Medium
Topic: Time value of money - interest rates and inflation
Learning Objective: 01-04 Calculate time value of money to analyze personal financial
decisions.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
12) Interest on savings is calculated by multiplying the principal amount times the opportunity
cost times the annual interest rate.
Answer: FALSE
Difficulty: 3 Hard
Topic: Time value of money - interest rates and inflation
Learning Objective: 01-04 Calculate time value of money to analyze personal financial
decisions.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
3
Copyright © 2020 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written onsent of McGraw-Hill Education.
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 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 evileye251. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £20.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73314 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now