TEST BANK FOR PFIN 8th Edition By Randall Billingsley, Lawrence Gitman, Michael Joehnk|All Chapters Covered|GUARANTEED PASS!!

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TEST BANK FOR
PFIN 8th Edition By Randall Billingsley, Lawrence Gitman, Michael Joehnk
Chapter 1-15 Answers Are At The End Of Each Chapter


Chapter 1

Indicate Whether The Statement Is True Or False.

1. Saving $400 For A Large, Flat-Screen TV Within The Next Four Months Is An Example Of A Short-Term Goal.
A. True
B. False

2. Commission-Based Financial Planners Charge Fees Based On The Complexity Of The Plan They Prepare.
A. True
B. False

3. In The United States, Salaries Tend To Be Higher In The Northeast And West Than In The South.
A. True
B. False

4. Setting Long- And Short-Term Career Goals Helps In Career Planning.
A. True
B. False

5. Financial Planning Takes Place In A Dynamic Economic Environment Created By The Actions Of The Government,
Business, And Consumers.
A. True
B. False

6. You Should Discuss Your Financial Goals And Attitudes Toward Money With Your Partner.
A. True
B. False

7. Accumulating Wealth For Later Years Is Called Estate Planning.
A. True
B. False

8. It Is Easy To Change Your Partner’s Financial Style, So There Is No Need For Financial Planning To Resolve
Conflicts Regarding Money Matters.
a. True

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b. False

9. Tax Plans Are Closely Tied To Investment Plans.
A. True
B. False

10. Recessions And Financial Crises Will Always Result In Job Loss.
A. True
B. False

11. The Longer You Wait To Begin Retirement Planning, The Less You Are Likely To Have In Your Retirement Fund.
A. True
B. False

12. Career Plans Should Not Be Changed After Long- And Short-Term Career Goals Are Set.
A. True
B. False

13. You Should Limit Your Spending To No More Than 20 Percent More Than What You Earn.
A. True
B. False

14. Morgan Has An Annual Income Of $45,000 And Spends $30,000 For Current Needs. Morgan’s Average
Propensity To Consume Is 80 Percent.
A. True
B. False

15. The Most Effective Way To Achieve Financial Objectives Is Through Personal Financial Planning.
A. True
B. False

16. Tangible (Physical) Assets Are Earning Assets That Are Held For The Returns They Promise.
A. True
B. False

17. Two People With Significantly Different Incomes Can Have Equal Average Propensities To Consume
Because Of Differences In Their Standard Of Living.
A. True
B. False

18. The Need For Financial Planning Declines As Your Income Increases.
A. True
B. False

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19. Retirement Planning Includes Taking Advantage Of And Managing Employer-Sponsored Benefits.
A. True
B. False

20. Geographic Factors Affect Your Earning Power.
A. True
B. False

21. Fee-Only Financial Planners Earn Commissions For The Products They Sell.
A. True
B. False

22. Marital Status Affects The Income Level Of Individuals.
A. True
B. False

23. Your Purchase, Saving, Investment, And Retirement Plans And Decisions Are Not Influenced By The Present State
Of The Economy.
A. True
B. False

24. For Employees Of Large Firms, Managing Employee Benefits Is An Important Part Of Financial Planning.
A. True
B. False

25. Short-Term Planning Should Include Creating And Maintaining An Emergency Fund With At Least Six Months’
Worth Of Income.
A. True
B. False

26. The Federal Government Delegates Its Regulation Of Economic Activity Function To Businesses And Consumers.
A. True
B. False

27. The Support Of Philanthropic Organizations Is A Material Item That Contributes To Our Quality Of Life.
A. True
B. False

28. The Average Propensity To Consume Is Commonly Viewed As A Key Determinant Of Standard Of Living.
A. True
B. False


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29. Financial Planning Can Improve Your Standard Of Living.
A. True
B. False

30. When You Get Your First Job, You Should Make A Good Financial Plan That You Can Follow Without Making
Changes Until You Retire.
A. True
B. False

31. Living Costs Are Constant Throughout The Country.
A. True
B. False

32. Standard Of Living Is Defined As The Necessities, Comforts, And Luxuries Desired By An Individual Or A Family.
A. True
B. False

33. The Decisions You Make In Career Planning Are Independent Of The Decisions You Make In Financial Planning.
A. True
B. False

34. Most People Tend To Be More Liberal About Their Expenditures During A Recession Or Crisis.
A. True
B. False

Indicate The Answer Choice That Best Completes The Statement Or Answers The Question.

35. Tax Planning Is Most Common Among Individuals With:
A. Low Incomes.
B. High Incomes.
C. No Incomes.
D. Erratic Incomes.
E. Decreasing Incomes.

36. Which Of The Following Would NOT Be Considered An Asset?
A. Savings Account
B. Land
C. Credit Card Balance
D. Jewelry
E. Money Market
Funds

37. When Applying For A Job Within A Large Nationwide Company, You Notice That Salaries For The Same Position
Differ Based On Geographic Region. In Which Of The Following Regions Would You Most Likely Receive The Highest
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