Test Bank for Personal Finance, 14th Edition by Thomas Garman
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Course
Personal Finance
Institution
Personal Finance
Test Bank for Personal Finance 14e 14th Edition by Thomas Garman, Jonathan Fox. Full Chapters test bank are included - Chapter 1 to 17
Part I: FINANCIAL PLANNING.
1. Understanding Personal Finance.
2. Career Planning.
3. Financial Statements, Goals, and Budgets.
Part II: MONEY MANAGEMENT.
4...
1. Financial literacy is knowledge of facts, concepts, principles, and
technological tools that are fundamental to being smart about money.
*a. True
b. False
2. Being financially responsible is being knowledgeable about facts,
concepts, principles, and technological tools that are fundamental to being
smart about money.
a. True
*b. False
3. Personal finance involves how people spend, save, protect, and invest
their financial resources.
*a. True
b. False
4. Financial success is defined as having high wealth.
a. True
*b. False
5. Financial security is defined as having a high income.
a. True
*b. False
,6. People who save and invest are much more likely to have funds for
future consumption.
*a. True
b. False
7. Standard of living refers to an individual's level of spending and
consumption.
a. True
*b. False
8. Standard of living is what individuals or groups aspire to attain, and level
of living is the level of wealth, comfort, materials goods, and necessities
one is currently living with.
*a. True
b. False
9. Financial security or wealth requires you to spend less than you earn.
*a. True
b. False
10. A business cycle is a wavelike pattern of economic activity that includes
an expansion, peak, contraction, and trough.
*a. True
b. False
11. The expansion phase is the preferred stage of the economic cycle.
, *a. True
b. False
12. Since it is impossible to make precise forecasts about economic trends,
we can ignore inflation and interest rates when planning our finances.
a. True
*b. False
13. The typical U.S. recession is marked by an average economic decline of
2 percent.
*a. True
b. False
14. The gross domestic product broadly measures the nation’s economic
health.
*a. True
b. False
15. Procyclical economic indicators move in the same direction as the
economy.
*a. True
b. False
16. The index of leading economic indicators is a composite index reported
monthly that suggests the future direction of the U.S. economy.
*a. True
b. False
, 17. The index of leading economic indicators averages eight components of
growth from various segments of the economy.
a. True
*b. False
18. Leading economic indicators are relied upon to measure the state of the
economy at any point in time.
a. True
*b. False
19. An example of inflation is an increase in the price of coffee, gasoline, or
other commodities.
*a. True
b. False
20. A steady rise in the general level of prices is called inflation.
*a. True
b. False
21. Deflation is a period of declining prices.
*a. True
b. False
22. Deflation occurs in an economy when there is an expansion in the
money supply.
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