Test Bank for Personal Finance 11th Edition E Thomas Garman, Raymond Forgue Chapter 1-18
Chapter 1—Understanding Personal Finance TRUE/FALSE 1. The level of financial literacy is high among Americans today. ANS: F financial literacy is low among most Americans. PTS: 1
DIF: easy
REF: p. 4
2. People today face the challenge of saving, investing, and managing their own retirement funds. ANS: T
PTS: 1
DIF: moderate
REF: p. 4
3. Personal finance is the study of personal and family resources considered important in achieving financial success. ANS: T
PTS: 1
DIF: easy
REF: p. 4
4. Financial success is marked by having high wealth. ANS: F financial success is the achievement of financial aspirations. PTS: 1
DIF: moderate
REF: p. 5
5. By saving and investing, people are much more likely to have funds available for future consumption. ANS: T
PTS: 1
DIF: easy
REF: p. 5
6. One's standard of living comprises all his or her current consumption. ANS: F current consumption is one's level of living. Standard of living is what you aspire to achieve. PTS: 1
DIF: moderate
REF: p. 5
7. Your standard of living is where you would like to be and your level of living is where you actually are. ANS: T
PTS: 1
DIF: easy
REF: p. 5
8. You cannot build financial security or wealth unless you spend less than you earn.