,1—Understanding kthe kFinancial kPlanning kProcess
k
TRUE/FALSE
1. Standard kof kliving kis kdefined kas kthe knecessities, kcomforts, kand kluxuries kdesired kby kan kindividual kor
kgroup.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
2. Your kaverage kpropensity kto kconsume kis kthe kpercentage kof keach kdollar kof kincome, kon kthe
kaverage, kthat kis kspent kfor kcurrent kneeds krather kthan ksavings.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
3. A kgood kfinancial kplan kcompleted kwhen kone kis kin ktheir k30s kwill ktypically klast ka klifetime.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-2
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kSynthesis
4. Financial kplanning kis ka kcontinuing, klife-long kprocess.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-2
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
5. Financial kplanning kcan kimprove kyour kstandard kof kliving.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
6. Current kconsumption kis kinversely krelated kto ksaving kfor kthe kfuture.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kAnalysis
7. About k20% kof kAmericans ksay kretirement kplanning kis ktheir kmost kpressing kfinancial kconcern.
, ANS: k F PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
8. The kmost keffective kway kto kachieve kfinancial kobjectives kis kthrough kfinancial kplanning.
ANS: k T PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
9. Defining kfinancial kgoals kis kan kimportant kfirst kstep kin kpersonal kfinancial kplanning kprocess.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-2
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
10. Two kpersons kwith kequal kaverage kpropensities kto kconsume kwill knot knecessarily khave kequal
kstandards kof kliving kbecause kof kdifferences kin kincome.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kEvaluation
11. The kneed kfor kfinancial kplanning kdeclines kas kyour kincome kincreases.
ANS: k F PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kSynthesis
12. Current kconsumption keffects kfuture kconsumption.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kAnalysis
13. A kperson kwho khas k$2,000 kmonthly kincome kand kspends k$1,800 kmonthly khas kan kaverage
kpropensity kto kconsume kof k90%.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kEvaluation
14. A kperson kmaking k$35,000 kand kspending k$30,800 khas kan kaverage kpropensity kto kconsume kof k80%.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kEvaluation
15. Most kfamilies kfind kit kdifficult kto kdiscuss kmoney kmatters.
ANS: k T PTS: k k1 DIF: Easy OBJ: k k LO: k1-2
, NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
16. Average kpropensity kto kconsume krefers kto khow kmuch kof kyour kmoney kyou kplan kto ksave kin
kyour kfinancial kplan.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
17. Tangible kassets kare kearning kassets kthat kare kheld kfor kthe kreturns kthey kpromise.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
18. Financial kassets kare kpaper kassets, ksuch kas ksavings kaccounts kand ksecurities.
ANS: k T PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
19. Mutual kfunds kare kexamples kof kfinancial kassets.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kApplication
20. Spending kfor kyour kchild's kprivate-school keducation kis kan kexample kof kdeferred kconsumption.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kApplication
21. Wealth kcan kbe kdefined kas kthe ktotal kvalue kof kall kthe kthings kyou kown.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
22. Wealth kis kthe kkey kconsideration kis kestablishing kfinancial kgoals kas kit kis kthe kmeasure kof kvalue
kin kfinancial ktransactions.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
23. Financial kassets kinclude kinvestments ksuch kas kstocks kand kbonds.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest kRates
k
TRUE/FALSE
1. Standard kof kliving kis kdefined kas kthe knecessities, kcomforts, kand kluxuries kdesired kby kan kindividual kor
kgroup.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
2. Your kaverage kpropensity kto kconsume kis kthe kpercentage kof keach kdollar kof kincome, kon kthe
kaverage, kthat kis kspent kfor kcurrent kneeds krather kthan ksavings.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
3. A kgood kfinancial kplan kcompleted kwhen kone kis kin ktheir k30s kwill ktypically klast ka klifetime.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-2
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kSynthesis
4. Financial kplanning kis ka kcontinuing, klife-long kprocess.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-2
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
5. Financial kplanning kcan kimprove kyour kstandard kof kliving.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
6. Current kconsumption kis kinversely krelated kto ksaving kfor kthe kfuture.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kAnalysis
7. About k20% kof kAmericans ksay kretirement kplanning kis ktheir kmost kpressing kfinancial kconcern.
, ANS: k F PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
8. The kmost keffective kway kto kachieve kfinancial kobjectives kis kthrough kfinancial kplanning.
ANS: k T PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
9. Defining kfinancial kgoals kis kan kimportant kfirst kstep kin kpersonal kfinancial kplanning kprocess.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-2
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
10. Two kpersons kwith kequal kaverage kpropensities kto kconsume kwill knot knecessarily khave kequal
kstandards kof kliving kbecause kof kdifferences kin kincome.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kEvaluation
11. The kneed kfor kfinancial kplanning kdeclines kas kyour kincome kincreases.
ANS: k F PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kSynthesis
12. Current kconsumption keffects kfuture kconsumption.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kAnalysis
13. A kperson kwho khas k$2,000 kmonthly kincome kand kspends k$1,800 kmonthly khas kan kaverage
kpropensity kto kconsume kof k90%.
ANS: k T PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kEvaluation
14. A kperson kmaking k$35,000 kand kspending k$30,800 khas kan kaverage kpropensity kto kconsume kof k80%.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kEvaluation
15. Most kfamilies kfind kit kdifficult kto kdiscuss kmoney kmatters.
ANS: k T PTS: k k1 DIF: Easy OBJ: k k LO: k1-2
, NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
16. Average kpropensity kto kconsume krefers kto khow kmuch kof kyour kmoney kyou kplan kto ksave kin
kyour kfinancial kplan.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
17. Tangible kassets kare kearning kassets kthat kare kheld kfor kthe kreturns kthey kpromise.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
18. Financial kassets kare kpaper kassets, ksuch kas ksavings kaccounts kand ksecurities.
ANS: k T PTS: k k 1 DIF: Moderate OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
19. Mutual kfunds kare kexamples kof kfinancial kassets.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kApplication
20. Spending kfor kyour kchild's kprivate-school keducation kis kan kexample kof kdeferred kconsumption.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kApplication
21. Wealth kcan kbe kdefined kas kthe ktotal kvalue kof kall kthe kthings kyou kown.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kKnowledge
22. Wealth kis kthe kkey kconsideration kis kestablishing kfinancial kgoals kas kit kis kthe kmeasure kof kvalue
kin kfinancial ktransactions.
ANS: k F PTS: k k 1 DIF: Challenging OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest
kRates kKEY: k Bloom's: kComprehension
23. Financial kassets kinclude kinvestments ksuch kas kstocks kand kbonds.
ANS: k T PTS: k k 1 DIF: Easy OBJ: k k LO: k1-1
NAT: k BUSPROG: kReflective kthinking STA: k DISC: kFinancial kMarkets kand kInterest kRates
