100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
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+$12.99
Add to cart
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+
11 views 0 purchase
Course
Focus on Personal Finance 12th Edition
Institution
Focus On Personal Finance 12th Edition
Book
Loose Leaf for Personal Finance
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 dem...
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.
,19. Who is most likely to benefit from inflation?
A. Retired people
B. Lenders
C. Borrowers
D. Low-income consumers
E. Government
20. Higher consumer prices are likely to be accompanied by:
A. lower union wages.
B. lower interest rates.
C. lower production costs.
D. higher interest rates.
E. higher exports.
21. With an inflation rate of 9 percent, prices would double in about ___________ years.
A. 4
B. 6
C. 8
D. 10
E. 12
22. Increased consumer spending will usually cause:
A. lower consumer prices.
B. reduced employment levels.
C. lower tax revenues.
D. lower interest rates.
E. higher employment levels.
23. Higher interest rates can be caused by:
A. a lower money supply.
B. an increase in the money supply.
C. a decrease in consumer borrowing.
D. lower government spending.
E. increased saving and investing by consumers.
24. The risk premium you receive as a saver is based:
A. on your credit rating.
B. on the amount of money you are borrowing.
C. only on the uncertainty associated with getting your money back.
D. only on the expected rate of inflation.
E. in part on the uncertainty associated with getting your money back and the expected rate of inflation.
, 25. Which of the following would increase the risk of a loan to the lender?
A. Inflation rate greater than loan rate
B. A short time to maturity
C. Consumer Price Index
D. Rule of 72
E. Inflation rate lower than loan rate
26. The stages in the family and financial needs of an adult are called the:
A. financial planning process.
B. budgeting procedure.
C. personal economic cycle.
D. adult life cycle.
E. tax planning process.
27. The study of how wealth is created and distributed is:
A. financial planning.
B. opportunity cost.
C. inflation.
D. economics.
E. a market economy.
28. The main economic influence that causes inflation is:
A. Changes in the stock market.
B. Decreases in interest rates.
C. Increases in employment.
D. Decreases in government spending.
E. Increases in demand without increases in supply.
29. The Fed refers to:
A. government regulation of business.
B. Congress.
C. the Federal Reserve System.
D. the Federal Deposit Insurance Corporation.
E. spending by the federal government.
30. The main responsibility of The Fed is to:
A. maintain an adequate supply of money.
B. approve spending by Congress.
C. set federal income tax rates.
D. determine illegal business activities.
E. maintain a balanced budget for the federal government.
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 TestsBanks. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
