Test Bank For PFIN (Personal Finance), 8th Edition by Billingsley, Gitman & Joehnk's| 9780357988046| All Chapters 1-15| LATEST

Name: Class: Date:




Copyright Cengage Learning. Powered
jj jj j j Page 1
jj


by

,Name: Class: Date:

TEST BANK FOR j j j j



PFIN 8th Edition by Randall Billingsley, Lawrence Gitman, Michael Joehnk
jj jj jj jj jj jj jj jj jj



Chapter 1-15 jj Answers are at the end of Each Chapter pp pp jpp pp jpp pp pp




chapter 1 j j




Indicate whether the statement is true or false.
j j j j j j j j j j j j j j




1. Saving $400 for a large, flat-screen TV within the next four months is an example of a short-term goal.
jj j j j j j j jj jj j j j j j j jj j j jj jj j j j j j j jj jj


a. True
b. False


2. Commission-based financial planners charge fees based on the complexity of the plan they prepare.
jj j j jj j j j j jj jj jj jj jj j j j j jj


a. True
b. False

3. In the United States, salaries tend to be higher in the Northeast and West than in the South.
jj j j j j j j j j j j j j j j jj j j jj j j jj j j jj jj j j


a. True
b. False


4. Setting long- and short-term career goals helps in career planning.
jj jj j j jj j j jj jj j j j j


a. True
b. False

5. Financial planning takes place in a dynamic economic environment created by the actions of the
j j jj jj j j jj j j j j j j j j j j jj j j j j j j


j jgovernment, business, and consumers. jj j j j j


a. True
b. False


6. You should discuss your financial goals and attitudes toward money with your partner.
jj jj jj jj j j jj jj jj j j jj jj jj


a. True
b. False

7. Accumulating wealth for later years is called estate planning.
jj jj jj j j jj j j jj jj


a. True
b. False


8. It is easy to change your partner’s financial style, so there is no need for financial
j j j j jj jj j j j j jj j j j j jj j j j j j j jj jj


j jplanning to resolve conflicts regarding money matters.
jj j j jj j j j j j j


a. True




Copyright Cengage Learning. Poweredjj jj j j Page 2
jj


by

,Name: Class: Date:

b. False

9. Tax plans are closely tied to investment plans.
j j jj j j jj j j jj j j


a. True
b. False

10. Recessions and financial crises will always result in job loss.
jj j j j j j j jj jj jj jj jj


a. True
b. False

11. The longer you wait to begin retirement planning, the less you are likely to have in your retirement fun
jj j j j j j j jj jj j j j j j j j j j j j j jj j j j j j j jj j j


a. True
b. False

12. Career plans should not be changed after long- and short-term career goals are set.
j j j j jj jj j j j j jj jj j j jj j j j j jj


a. True
b. False

13. You should limit your spending to no more than 20 percent more than what you earn.
jj jj j j jj jj jj j j j j j j jj j j jj j j j j j j


a. True
b. False


14. Morgan has an annual income of $45,000 and spends $30,000 for current needs.
j j jj j j jj j j j j jj jj j j j j j j jj


Morgan’s average propensity to consume is 80 percent.
j j j j jj jj j j j j j j j j


a. True
b. False

15. The most effective way to achieve financial objectives is through personal financial planning.
jj j j jj jj jj jj jj jj jj jj jj j j


a. True
b. False

16. Tangible (physical) assets are earning assets that are held for the returns they promise.
jj jj j j jj jj j j jj j j jj jj jj j j j j


a. True
b. False


17. Two people with significantly different incomes can have equal average propensities to
jj j j jj jj j j j j j j j j j j j j j j


jjconsume because of differences in their standard of living.
jj j j j j j j j j j j j j j j


a. True
b. False


18. The need for financial planning declines as your income increases.
jj jj jj j j jj j j jj jj j j


a. True
b. False

Copyright Cengage Learning. Powered
jj jj j j Page 3
jj


by

, Name: Class: Date:



19. Retirement planning includes taking advantage of and managing employer-sponsored benefits.
jj jj jj jj jj jj jj jj jj


a. True
b. False


20. Geographic factors affect your earning power.
jj jj j j jj jj


a. True
b. False

21. Fee-only financial planners earn commissions for the products they sell.
jj j j jj jj jj jj jj j j jj


a. True
b. False


22. Marital status affects the income level of individuals.
j j jj jj j j jj j j jj


a. True
b. False

23. Your purchase, saving, investment, and retirement plans and decisions are not influenced by the
j j jj j j j j j j j j jj j j jj jj jj j j jj


present state of the economy.
j j j j jj j j j j


a. True
b. False


24. For employees of large firms, managing employee benefits is an important part of financial planning.
jj j j jj jj j j jj j j j j jj jj j j j j jj j j


a. True
b. False

25. Short-term planning should include creating and maintaining an emergency fund with at least
jj jj jj j j jj j j jj j j jj j j jj j j


six months’ worth of income.
j j j j jj j j j j


a. True
b. False

26. The federal government delegates its regulation of economic activity function to businesses and consumers.
jj j j j j jj jj j j jj jj jj jj jj j j jj


a. True
b. False


27. The support of philanthropic organizations is a material item that contributes to our quality of life.
jj j j j j jj j j j j jj jj jj j j jj j j j j jj jj


a. True
b. False

28. The average propensity to consume is commonly viewed as a key determinant of standard of living.
jj j j jj j j j j j j j j j j jj j j jj jj j j j j j j


a. True
b. False


Copyright Cengage Learning. Powered
jj jj j j Page 4
jj


by