,TESTBANK FOR Personal Finance 3e Bajtelsmit
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Personal Finance, 3e (Bajtelsmit)
Chapter 1 The Financial Planning Process
1) Personal finance is a specialized area of study that focuses
A) exclusively on investments and retirement planning.
B) on financial management, household budgets, and investments.
C) exclusively on investment management and household budgets.
D) on individual and household financial decisions, such as budgeting, saving, spending, tax
planning, insurance, and investments.
Answer: D
Explanation: Personal finance is a specialized area of study that focuses on individual and
household financial decisions, such as budgeting, saving, spending, tax-planning, insurance, and
investments.
Diff: 1 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Knowledge
AACSB: Knowledge
Expected Time to Complete: 1 minute
2) Critical to the success of building a comprehensive financial plan is that you approach its
creation in a logical order. The proper steps in creating a successful financial plan fall in this
order:
A) Secure basic needs, build and protect wealth, and establish a firm foundation.
B) Secure basic needs, establish a firm foundation, and build and protect wealth.
C) Build and protect wealth, establish a firm foundation, and secure basic needs.
D) Establish a firm foundation, secure basic needs, and build and protect wealth.
Answer: D
Explanation: Critical to the success of building a comprehensive financial plan is that you
approach its creation in a logical order. The steps to success are: establish a firm foundation,
secure basic needs, and build and protect wealth.
Diff: 2 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
1
, 3) The financial planning process includes five steps. Four of the steps are listed next:
• Analyze your current financial status.
• Implement your financial plan.
• Monitor your progress and revise your plan as needed.
• Organize your financial information and set short-term and long-term goals.
What is the missing step?
A) Identify and evaluate alternative strategies for meeting your goals.
B) Understand the personal financial planning process.
C) Acquire the necessary decision-making skills and tools.
D) Build wealth and protection against emergencies.
Answer: A
Explanation: The five steps in the financial planning process are as follows:
1. Organize your financial information and set short-term and long-term goals.
2. Analyze your current financial status.
3. Identify and evaluate alternative strategies for achieving your goals.
4. Implement your financial plan.
5. Monitor your progress and revise your plan as needed.
Diff: 2 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
4) An effective financial plan must be adaptable to changing circumstances. Which would not be
a reason to take you back to Step 1 of the financial planning process?
A) Changes in economic conditions
B) Birth of a child
C) Purchase of life insurance
D) Marriage
Answer: C
Explanation: Many changes will occur over the course of your life. Not only will changes in
your personal circumstances (a new job, marriage, and children) affect your financial planning
objectives and strategies but also may changes in economic conditions necessitate a revision of
your comprehensive financial plan. Thus, revising your plan takes you continually back to the
beginning of the process again. Life insurance is a result of changing a financial plan.
Diff: 2 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Application
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
2
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Personal Finance, 3e (Bajtelsmit)
Chapter 1 The Financial Planning Process
1) Personal finance is a specialized area of study that focuses
A) exclusively on investments and retirement planning.
B) on financial management, household budgets, and investments.
C) exclusively on investment management and household budgets.
D) on individual and household financial decisions, such as budgeting, saving, spending, tax
planning, insurance, and investments.
Answer: D
Explanation: Personal finance is a specialized area of study that focuses on individual and
household financial decisions, such as budgeting, saving, spending, tax-planning, insurance, and
investments.
Diff: 1 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Knowledge
AACSB: Knowledge
Expected Time to Complete: 1 minute
2) Critical to the success of building a comprehensive financial plan is that you approach its
creation in a logical order. The proper steps in creating a successful financial plan fall in this
order:
A) Secure basic needs, build and protect wealth, and establish a firm foundation.
B) Secure basic needs, establish a firm foundation, and build and protect wealth.
C) Build and protect wealth, establish a firm foundation, and secure basic needs.
D) Establish a firm foundation, secure basic needs, and build and protect wealth.
Answer: D
Explanation: Critical to the success of building a comprehensive financial plan is that you
approach its creation in a logical order. The steps to success are: establish a firm foundation,
secure basic needs, and build and protect wealth.
Diff: 2 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
1
, 3) The financial planning process includes five steps. Four of the steps are listed next:
• Analyze your current financial status.
• Implement your financial plan.
• Monitor your progress and revise your plan as needed.
• Organize your financial information and set short-term and long-term goals.
What is the missing step?
A) Identify and evaluate alternative strategies for meeting your goals.
B) Understand the personal financial planning process.
C) Acquire the necessary decision-making skills and tools.
D) Build wealth and protection against emergencies.
Answer: A
Explanation: The five steps in the financial planning process are as follows:
1. Organize your financial information and set short-term and long-term goals.
2. Analyze your current financial status.
3. Identify and evaluate alternative strategies for achieving your goals.
4. Implement your financial plan.
5. Monitor your progress and revise your plan as needed.
Diff: 2 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Comprehension
AACSB: Comprehension
Expected Time to Complete: 2 minutes
4) An effective financial plan must be adaptable to changing circumstances. Which would not be
a reason to take you back to Step 1 of the financial planning process?
A) Changes in economic conditions
B) Birth of a child
C) Purchase of life insurance
D) Marriage
Answer: C
Explanation: Many changes will occur over the course of your life. Not only will changes in
your personal circumstances (a new job, marriage, and children) affect your financial planning
objectives and strategies but also may changes in economic conditions necessitate a revision of
your comprehensive financial plan. Thus, revising your plan takes you continually back to the
beginning of the process again. Life insurance is a result of changing a financial plan.
Diff: 2 Var: 1
Section: 1.1 What Is Personal Financial Planning?
Learning Objective: 1.1 Describe the personal financial planning process, and explain how the
elements of a comprehensive financial plan fit together.
Bloomcode: Application
AACSB: Reflective Thinking
Expected Time to Complete: 1 minute
2
