Test Bank for PFIN 8th Edition by Randall Billingsley , ISBN: 9780357988046 |Chapters 1-15| (Answers at the End of Every Chapter) Guide A+

TEST BANK
PFIN

Randall Billingsley

8th Edition
Chapters 1-15 (Answers at the End of Every Chapter)
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Page 1

,Table of Contents
PART I. FOUNDATIONS OF FINANCIAL PLANNING
1. Understanding the Financial Planning Process
2. Using Financial Statements and Budgets
3. Preparing Your Taxes
PART II. MANAGING BASIC ASSETS
4. Managing Your Cash and Savings
5. Making Automobile and Housing Decisions
PART III. MANAGING CREDIT
6. Using Credit
7. Using Consumer Loans
PART IV. MANAGING INSURANCE NEEDS
8. Insuring Your Life
9. Insuring Your Health
10. Protecting Your Property
PART V. MANAGING INVESTMENTS
11. Investment Planning
12. Investing in Stocks and Bonds
13. Investing in Mutual Funds, ETFs, and Real Estate
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PART VI. RETIREMENT AND ESTATE PLANNING
14. Planning for Retirement
15. Preserving Your Estate
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, Chapter 01 PFIN8
(Answers at the end of every Chapter)
Indicate whether the statement is true or false.
1. The support of philanthropic organizations is a material item that contributes to our quality of life.
a. True
b. False

2. For employees of large firms, managing employee benefits is an important part of financial planning.
a. True
b. False

3. Commission-based financial planners charge fees based on the complexity of the plan they prepare.
a. True
b. False

4. Short-term planning should include creating and maintaining an emergency fund with at least six months’ worth
of income.
a. True
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b. False

5. The decisions you make in career planning are independent of the decisions you make in financial planning.
a. True
b. False
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6. Morgan has an annual income of $45,000 and spends $30,000 for current needs. Morgan’s average propensity
to consume is 80 percent.
a. True
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b. False

7. Retirement planning includes taking advantage of and managing employer-sponsored benefits.
a. True
b. False
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8. Two people with significantly different incomes can have equal average propensities to consume because of
differences in their standard of living.
a. True
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b. False

9. In the United States, salaries tend to be higher in the Northeast and West than in the South.
a. True
b. False

10. Financial planning can improve your standard of living.
a. True
b. False




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, Name: Class: Date:

Chapter 01 PFIN8

11. Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or a family.
a. True
b. False

12. Fee-only financial planners earn commissions for the products they sell.
a. True
b. False

13. Setting long- and short-term career goals helps in career planning.
a. True
b. False

14. The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.
a. True
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b. False

15. Career plans should not be changed after long- and short-term career goals are set.
a. True
b. False
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16. Tangible (physical) assets are earning assets that are held for the returns they promise.
a. True
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b. False

17. Financial planning takes place in a dynamic economic environment created by the actions of the government,
business, and consumers.
a. True
b. False
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18. You should discuss your financial goals and attitudes toward money with your partner.
a. True
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b. False

19. The most effective way to achieve financial objectives is through personal financial planning.
a. True
b. False

20. Geographic factors affect your earning power.
a. True
b. False

21. When you get your first job, you should make a good financial plan that you can follow without making changes
until you retire.
a. True
b. False



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