Test Bank for Focus On Personal Finance 7th Edition Jack
Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart All 1-18
Chapters Fully Covered With Questions And Verified
Soutions And A Case Study
, TABLE OF CONTENT
Personal Financial Planning in Action
Appendix: Time Value of Money
Money Management Skills
Appendix: Developing a Career Strategy
Taxes in Your Financial Plan
Financial Services: Savings Plans & Payment Accounts
Consumer Credit: Advantages, Disadvantages, Sources &
Costs
Appendix: Education Financing, Loans & Scholarships
Consumer Purchasing & Wise Buying Strategies
Appendix: Consumer Agencies & Organizations
Selecting and Financing Housing
Home and Automobile Insurance
Health & Disability Income Insurance
Financial Planning with Life Insurance
Investing Basics & Evaluating Bonds
Investing in Stocks
Investing in Mutual Funds
Starting Early: Retirement & Estate Planning
,Chapter 1: Personal Financial Planning in Action
1. What is personal financial planning?
A. Spending all income as you get it
B. Setting goals, creating a plan, and using financial tools
C. Relying on others to manage your finances
D. Investing only in stocks
Rationale: Personal financial planning involves assessing your
current finances, setting goals, and using strategies and tools
to meet those goals.
2. Which of the following is the first step in the financial
planning process?
A. Develop a financial plan
B. Set financial goals
C. Implement the plan
D. Reevaluate the plan
Rationale: You must define your goals before planning how to
achieve them.
3. Long-term financial goals typically span how many
years?
A. 0–1 years
B. 1–3 years
C. 3–5 years
D. Over 5 years
, Rationale: Goals taking more than 5 years (like retirement)
are considered long-term.
4. Which goal is considered an intermediate-term goal?
A. Buying groceries weekly
B. Paying off credit card debt in two years
C. Retirement planning 30 years out
D. Opening a savings account tomorrow
Rationale: Intermediate goals take between 1 and 5 years.
5. An emergency fund is best measured in:
A. Net worth
B. Months of living expenses
C. Gross income
D. Credit score
Rationale: Standard recommendation is 3–6 months of living
expenses.
6. Which financial statement shows your income and
expenses over a period of time?
A. Net worth statement
B. Income and expense statement (cash flow statement)
C. Balance sheet
D. Credit report
Rationale: Income and expense statements track money
coming in and going out.
7. Your net worth equals:
A. Assets + liabilities
Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart All 1-18
Chapters Fully Covered With Questions And Verified
Soutions And A Case Study
, TABLE OF CONTENT
Personal Financial Planning in Action
Appendix: Time Value of Money
Money Management Skills
Appendix: Developing a Career Strategy
Taxes in Your Financial Plan
Financial Services: Savings Plans & Payment Accounts
Consumer Credit: Advantages, Disadvantages, Sources &
Costs
Appendix: Education Financing, Loans & Scholarships
Consumer Purchasing & Wise Buying Strategies
Appendix: Consumer Agencies & Organizations
Selecting and Financing Housing
Home and Automobile Insurance
Health & Disability Income Insurance
Financial Planning with Life Insurance
Investing Basics & Evaluating Bonds
Investing in Stocks
Investing in Mutual Funds
Starting Early: Retirement & Estate Planning
,Chapter 1: Personal Financial Planning in Action
1. What is personal financial planning?
A. Spending all income as you get it
B. Setting goals, creating a plan, and using financial tools
C. Relying on others to manage your finances
D. Investing only in stocks
Rationale: Personal financial planning involves assessing your
current finances, setting goals, and using strategies and tools
to meet those goals.
2. Which of the following is the first step in the financial
planning process?
A. Develop a financial plan
B. Set financial goals
C. Implement the plan
D. Reevaluate the plan
Rationale: You must define your goals before planning how to
achieve them.
3. Long-term financial goals typically span how many
years?
A. 0–1 years
B. 1–3 years
C. 3–5 years
D. Over 5 years
, Rationale: Goals taking more than 5 years (like retirement)
are considered long-term.
4. Which goal is considered an intermediate-term goal?
A. Buying groceries weekly
B. Paying off credit card debt in two years
C. Retirement planning 30 years out
D. Opening a savings account tomorrow
Rationale: Intermediate goals take between 1 and 5 years.
5. An emergency fund is best measured in:
A. Net worth
B. Months of living expenses
C. Gross income
D. Credit score
Rationale: Standard recommendation is 3–6 months of living
expenses.
6. Which financial statement shows your income and
expenses over a period of time?
A. Net worth statement
B. Income and expense statement (cash flow statement)
C. Balance sheet
D. Credit report
Rationale: Income and expense statements track money
coming in and going out.
7. Your net worth equals:
A. Assets + liabilities
