Test Bank For Personal Finance, 9th Edition By Keown || All Chapters (1-17) |Updated Version 2024. A+
32 views 2 purchases
Course
Personal Finance, 9th edition
Institution
Personal Finance, 9th Edition
Test Bank for Personal Finance, 9th edition Keown Chapter 1-17. A+
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: FAL...
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
,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
,10) What elements are found in an effective financial plan?
A) Flexibility to allow for changes in your situation
B) Sufficient liquidity to meet unexpected needs
C) Insurance protection from catastrophic events
D) Helps you legally reduce the amount of taxes you owe
E) All of the above
Answer: E
Diff: 1
Topic: Financial Planning
AACSB: Analytical Thinking
11) This course/text will assist you in accomplishing six financial objectives. What are they?
Answer:
1. Manage the unplanned.
2. Accumulate wealth for special expenses.
3. Realistically save for retirement.
4. Cover your assets.
5. Invest intelligently.
6. Minimize your payments to Uncle Sam.
Diff: 2
Topic: Financial Planning
AACSB: Analytical Thinking
12) How will a financial plan help you save for retirement?
Answer: A strong financial plan will help you forecast the costs of retirement and develop a plan
that will allow you to live a comfortable life after you retire.
Diff: 2
Topic: Financial Planning
AACSB: Reflective Thinking
1.2 The Personal Financial Planning Process
1) Today, most Americans over the age of 65 have adequate savings and income available to them
during retirement.
Answer: FALSE
Diff: 1
Topic: Financial Planning Life Cycle
AACSB: Analytical Thinking
2) The amount of current income that you earn today isn't relevant to setting your long-term goals
for the future.
Answer: FALSE
Diff: 1
Topic: Financial Planning
AACSB: Reflective Thinking
, 3) A financial plan is only concerned with your future earnings and expenses. An examination of
your current financial situation is not so important.
Answer: FALSE
Diff: 1
Topic: The Financial Planning Process
AACSB: Analytical Thinking
4) While each person's financial plan is different, some common factors guide all sound financial
plans: flexibility, liquidity, protection, and minimization of taxes.
Answer: TRUE
Diff: 2
Topic: The Financial Planning Process
AACSB: Analytical Thinking
5) Financial planning is an ongoing process. As your financial situation and position in life change,
the plan changes.
Answer: TRUE
Diff: 1
Topic: The Financial Planning Process
AACSB: Analytical Thinking
6) Which of the following is one of the five basic steps in personal financial planning?
A) Evaluate your personal health.
B) Define your career goals.
C) Develop a plan of action.
D) Let an accountant review your plan.
Answer: C
Diff: 2
Topic: The Financial Planning Process
AACSB: Analytical Thinking
7) Which basic step to personal financial planning should be considered when examining your
current financial situation?
A) Step 1
B) Step 2
C) Step 3
D) Step 4
Answer: A
Diff: 1
Topic: The Financial Planning Process
AACSB: Analytical Thinking
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.
