Test Bank For Personal Financial Planning 12th Edition Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley Chapter 1-15
Chapter 1—Understanding the Financial Planning Process TRUE/FALSE 1. Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or group. ANS: T PTS: 1 NAT: Tier 1: Reflective thinking LOC: Tier 2: Financial markets and/or interest rates 2. The cost of raising a child from birth to age 18 is now more than $300,000. ANS: T PTS: 1 NAT: Tier 1: Reflective thinking LOC: Tier 2: Financial markets and/or interest rates 3. Your propensity to consume is the percentage of each dollar of income, on the average, that is spent for current needs rather than savings. ANS: T PTS: 1 NAT: Tier 1: Reflective thinking LOC: Tier 2: Financial markets and/or interest rates 4. A good financial plan completed when one is in their 30s will typically last a lifetime. ANS: F PTS: 1 NAT: Tier 1: Reflective thinking LOC: Tier 2: Financial markets and/or interest rates 5. Financial planning is a continuing, life-long process. ANS: T PTS: 1 NAT: Tier 1: Reflective thinking LOC: Tier 2: Financial markets and/or interest rates 6. Financial planning can improve your standard of living. ANS: T PTS: 1 NAT: Tier 1: Reflective thinking LOC: Tier 2: Financial markets and/or interest rates 7. Current consumption is inversely related to saving for the future. ANS: T PTS: 1 NAT: Tier 1: Reflective thinking LOC: Tier 2: Financial markets and/or interest rates 8. About 20% of Americans say retirement planning is their most pressing financial concern. ANS: F
PTS: 1
NAT: Tier 1: Reflective thinking