Test Bank – Personal Finance, 15th Edition by Garman, Fox & Bartholomae

TEST BANK

Personal Finance, 15th Edition Garman
E. Thomas Garman, Jonathan Fox, Suzanne Bartholomae


Includes All Chapters (1 to 17)

What’s Included?



• Complete Chapter-by-Chapter Test Bank

• Multiple Choice Questions (MCQs) with Answers - Rationales Included

• True / False - Answers Included

,Chapter 1: Thinking like a Financial Planner
True / False

1. Financial literacy is knowledge of facts, concepts, principles, and tools of money management that are fundamental to
being smart about money.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
KEYWORDS: Bloom’s: Remember

2. Personal finance involves how people spend, save, protect, and invest their financial resources.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
KEYWORDS: Bloom’s: Remember

3. Financial success is defined as having high wealth.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
KEYWORDS: Bloom’s: Remember

4. Financial security is defined as having a high income.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
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,Chapter 1: Thinking like a Financial Planner

KEYWORDS: Bloom’s: Remember

5. People who save and invest are much more likely to have funds for future consumption.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
KEYWORDS: Bloom’s: Remember

6. Standard of living refers to an individual's level of spending and consumption.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
KEYWORDS: Bloom’s: Remember

7. Standard of living is what individuals or groups aspire to attain, and level of living is the level of wealth, comfort,
materials goods, and necessities one is currently living with.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
KEYWORDS: Bloom’s: Remember

8. Financial security or wealth requires you to spend less than you earn.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1.1 Achieving Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.01 - Recognize the keys to achieving financial success.
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, Chapter 1: Thinking like a Financial Planner

KEYWORDS: Bloom’s: Understand

9. A business cycle is a wavelike pattern of economic activity that includes an expansion, peak, contraction, and trough.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.2 The Economy Affects Our Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.02 - Understand how the economy affects our personal financial
success.
KEYWORDS: Bloom’s: Remember

10. The expansion phase is the preferred stage of the economic cycle.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1.2 The Economy Affects Our Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.02 - Understand how the economy affects our personal financial
success.
KEYWORDS: Bloom’s: Remember

11. As it is impossible to make precise forecasts about economic trends, we can ignore inflation and interest rates when
planning our finances.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1.2 The Economy Affects Our Personal Financial Success
QUESTION TYPE: True / False
LEARNING OBJECTIVES: PFIN.GARMAN.27.01.02 - Understand how the economy affects our personal financial
success.
KEYWORDS: Bloom’s: Understand

12. The gross domestic product broadly measures the nation’s economic health.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
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