Name: Class: Date:
chapter 1
NJ
Indicate whether the statement is true or false.
NJ NJ NJ NJ NJ NJ NJ
1. Saving $400 for a large, flat-screen TV within the next four months is an example of a short-term goal.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
2. Commission-based financial planners charge fees based on the complexity of the plan they prepare.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
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NJ NJ NJ NJ NJ Page 1
NJ
o.
,Name: Class: Date:
3. In the United States, salaries tend to be higher in the Northeast and West than in the South.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
4. Setting long- and short-term career goals helps in career planning.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
5. Financial planning takes place in a dynamic economic environment created by the actions of the government, bus
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
iness, and consumers.
NJ NJ
a. True
b. False
6. You should discuss your financial goals and attitudes toward money with your partner.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
7. Accumulating wealth for later years is called estate planning.
NJ NJ NJ NJ NJ NJ NJ NJ
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 co
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
nflicts regarding money matters.
NJ NJ NJ
a. True
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NJ NJ NJ NJ NJ Page 2 NJ
o.
,Name: Class: Date:
b. False
9. Tax plans are closely tied to investment plans.
NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
10. Recessions and financial crises will always result in job loss.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
11. The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
12. Career plans should not be changed after long- and short-term career goals are set.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
13. You should limit your spending to no more than 20 percent more than what you earn.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
14. Morgan has an annual income of $45,000 and spends $30,000 for current needs. Morgan’s average propens
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
ity to consume is 80 percent.
NJ NJ NJ NJ NJ
a. True
b. False
15. The most effective way to achieve financial objectives is through personal financial planning.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
16. Tangible (physical) assets are earning assets that are held for the returns they promise.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
17. Two people with significantly different incomes can have equal average propensities to consume becau
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
se of differences in their standard of living.
NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
18. The need for financial planning declines as your income increases.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
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NJ NJ NJ NJ NJ Page 3
NJ
o.
, Name: Class: Date:
19. Retirement planning includes taking advantage of and managing employer-sponsored benefits.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
20. Geographic factors affect your earning power.
NJ NJ NJ NJ NJ
a. True
b. False
21. Fee-only financial planners earn commissions for the products they sell.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
22. Marital status affects the income level of individuals.
NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
23. Your purchase, saving, investment, and retirement plans and decisions are not influenced by the present state
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
of the economy.
NJ NJ
a. True
b. False
24. For employees of large firms, managing employee benefits is an important part of financial planning.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
25. Short-
term planning should include creating and maintaining an emergency fund with at least six months’ worth of inc
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
ome.
a. True
b. False
26. The federal government delegates its regulation of economic activity function to businesses and consumers.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
27. The support of philanthropic organizations is a material item that contributes to our quality of life.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
28. The average propensity to consume is commonly viewed as a key determinant of standard of living.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
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NJ NJ NJ NJ NJ Page 4 NJ
o.
chapter 1
NJ
Indicate whether the statement is true or false.
NJ NJ NJ NJ NJ NJ NJ
1. Saving $400 for a large, flat-screen TV within the next four months is an example of a short-term goal.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
2. Commission-based financial planners charge fees based on the complexity of the plan they prepare.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
Copyright Cengage Learning. Powered by Cogner
NJ NJ NJ NJ NJ Page 1
NJ
o.
,Name: Class: Date:
3. In the United States, salaries tend to be higher in the Northeast and West than in the South.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
4. Setting long- and short-term career goals helps in career planning.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
5. Financial planning takes place in a dynamic economic environment created by the actions of the government, bus
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
iness, and consumers.
NJ NJ
a. True
b. False
6. You should discuss your financial goals and attitudes toward money with your partner.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
7. Accumulating wealth for later years is called estate planning.
NJ NJ NJ NJ NJ NJ NJ NJ
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 co
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
nflicts regarding money matters.
NJ NJ NJ
a. True
Copyright Cengage Learning. Powered by Cogner
NJ NJ NJ NJ NJ Page 2 NJ
o.
,Name: Class: Date:
b. False
9. Tax plans are closely tied to investment plans.
NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
10. Recessions and financial crises will always result in job loss.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
11. The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
12. Career plans should not be changed after long- and short-term career goals are set.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
13. You should limit your spending to no more than 20 percent more than what you earn.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
14. Morgan has an annual income of $45,000 and spends $30,000 for current needs. Morgan’s average propens
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
ity to consume is 80 percent.
NJ NJ NJ NJ NJ
a. True
b. False
15. The most effective way to achieve financial objectives is through personal financial planning.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
16. Tangible (physical) assets are earning assets that are held for the returns they promise.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
17. Two people with significantly different incomes can have equal average propensities to consume becau
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
se of differences in their standard of living.
NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
18. The need for financial planning declines as your income increases.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
Copyright Cengage Learning. Powered by Cogner
NJ NJ NJ NJ NJ Page 3
NJ
o.
, Name: Class: Date:
19. Retirement planning includes taking advantage of and managing employer-sponsored benefits.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
20. Geographic factors affect your earning power.
NJ NJ NJ NJ NJ
a. True
b. False
21. Fee-only financial planners earn commissions for the products they sell.
NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
22. Marital status affects the income level of individuals.
NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
23. Your purchase, saving, investment, and retirement plans and decisions are not influenced by the present state
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
of the economy.
NJ NJ
a. True
b. False
24. For employees of large firms, managing employee benefits is an important part of financial planning.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
25. Short-
term planning should include creating and maintaining an emergency fund with at least six months’ worth of inc
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
ome.
a. True
b. False
26. The federal government delegates its regulation of economic activity function to businesses and consumers.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
27. The support of philanthropic organizations is a material item that contributes to our quality of life.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
28. The average propensity to consume is commonly viewed as a key determinant of standard of living.
NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
a. True
b. False
Copyright Cengage Learning. Powered by Cogner
NJ NJ NJ NJ NJ Page 4 NJ
o.
