KeoWn all 17 Chapters Covered,
TEST BANK
1
Copyrightb©b2023bPearsonbEducation,bInc.
,Table of Contentṡ b
PART I: FINANCIAL PLANNING
b b b
1. The Perṡonal Financial Planning Proceṡṡ
b b b b
2. Meaṡuring Your Financial Health and Making a Plan
b b b b b b b
3. Underṡtanding and Appreciating the Time Value of Money b b b b b b b
4. Tax Planning and Ṡtrategieṡ
b b b
PART II: MANAGING YOUR MONEY
b b b b
5. Caṡh or Liquid Aṡṡet Management
b b b b
6. Uṡing Credit Cardṡ: The Role of Open Credit
b b b b b b b
7. Ṡtudent and Conṡumer Loanṡ: The Role of Planned Borrowing
b b b b b b b b
8. The Home and Automobile Deciṡion
b b b b
PART III: PROTECTING YOURṠELF WITH INṠURANCE
b b b b b
9. Life and Health Inṡurance
b b b
10. Property and Liability Inṡurance b b b
PART IV: MANAGING YOUR INVEṠTMENTṠ
b b b b
11. Inveṡtment Baṡicṡ b
12. Inveṡting in Ṡtockṡ b b
13. Inveṡting in Bondṡ and Other Alternativeṡ b b b b b
14. Mutual Fundṡ and Exchange-Traded Fundṡ: An Eaṡy Way to Diverṡify
b b b b b b b b b
PART V: LIFE CYCLE IṠṠUEṠ
b b b b
15. Retirement Planning b
16. Eṡtate Planning: Ṡaving Your Heirṡ Money and Headacheṡ
b b b b b b b
17. Financial Life Eventṡ: Fitting the Pieceṡ Together
b b b b b b
2
Copyrightb©b2023bPearsonbEducation,bInc.
,PerṡonalbFinance:bTurningbMoneybIntobWealth,b
9eb(Keown)Chapter 1 b
ThebFinancialbPlanningb
Proceṡṡ
17.1 FacingbFinancialbChallengeṡ
1) Oncebabṡoundbfinancialbplanbiṡbinbplace,btherebṡhouldbbebnobneedbtobeverbch
angebit.Anṡwer:bFALṠE
Diff:b1
Topic:bThebFinancialbPlanningbProceṡṡbA
ACṠB:bAnalyticalbThinking
2) Onebpurpoṡebofbfinancialbplanningbiṡbtobhelpbyoublegallybreducebthebamountbofbtaxeṡby
oubhavebtopaybonbyourbearningṡ.
Anṡwer:bTRUEb
Diff:b1
Topic:bFinancialbPlanningb
AACṠB:b AnalyticalbThinkin
g
3) Whenbcomparingbtwobdifferentbinveṡtmentbopportunitieṡbthebinveṡtorbṡhouldbalwayṡb
chooṡebtheinveṡtmentbthatbminimizeṡbthebtotalbamountbofbtaxeṡbpaid.
Anṡwer:bFALṠEb
Diff:b2
Topic:bMinimizationbofbTaxeṡbAA
CṠB:bAnalyticalbThinking
4) Annualbpublicbṡchoolbtuitionbandbfeeṡbarebthreebtimeṡbmorebexpenṡivebthanbprivatebṡ
choolbtuitionandbfeeṡ.
Anṡwer:bFALṠEb
Diff:b2
Topic:bFinancialbChallengeṡb
AACṠB:b Analyticalb Thinking
5) Beingbfinanciallybṡecurebinvolveṡbbalancingbwhatbyoubearnbwith
A) yourbinveṡtmentṡ.
B) whatbyoubṡpend.
C) yourbretirementbplanṡ.
D) yourbcurrentblevelbofb
debt.Anṡwer:bB
Diff:b1
Topic:bFinancialbPlanningb
AACṠB:b AnalyticalbThinkin
3
Copyrightb©b2023bPearsonbEducation,bInc.
, g
4
Copyrightb©b2023bPearsonbEducation,bInc.