Exam (elaborations)
Personal Financial Planning 15th Edition by Randy Billingsley, Lawrence J. Gitman
- Course
- Institution
- Book
Personal Financial Planning 15th Edition by Randy Billingsley, Lawrence J. Gitman
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Personal Financial Planning 15th Edition by Randy Billingsley, Lawrence J. Gitman
-
Personal Financial Planning 15th Edition by Randy Billingsley, Lawrence J. Gitman
Seller
Follow
kushboopatel6867
Reviews received
Content preview
Solution Manual for Personal Financial Planning 15th Editionby Randy Billingsley, Lawrence J. Gitman
T or F: A stock certificate is an example of a tangible asset. - ANSWER: False
T or F: The presence of material items, such as a house, car, clothing, and having
money available for health care contributes to our quality of life. - ANSWER: True
You would most likely have a low average propensity to consume if you have:
A) a high income and spend every dollar on current needs
B) a low income and spend every dollar on current needs
C) no income and borrow to pay for current needs
D) a high income and save most of it - ANSWER: D) a high income and save most of it
T or F: Personal financial planning will not help you if your income seems to be
inadequate to meet your most basic needs - ANSWER: False
T or F: the first step in the financial planning process is to develop financial plans and
strategies - ANSWER: False
T or F: Learning to communicate with your parter about money is a critical step in
developing effective financial plans - ANSWER: True
T or F: You are more likely to attain your financial goals if you set them higher than
you are currently able to achieve - ANSWER: False
T or F: Unless you attain your short-term goals, you probably will not be able to
achieve your intermediate or long term goals. - ANSWER: True
"Financial shocks" that can drastically change one's financial circumstances include
A) divorce
B) death of a spouse
C) supporting elderly parents while paying for your children's college educations
D) all of these choices - ANSWER: D) all of these choices
Which of the following would not be considered an asset?
A) savings account
B) land
C) credit card balance
D) jewelry - ANSWER: C) credit card balance
T or F: In financial planning, adequate insurance coverage is essential only after you
have attained size-able wealth - ANSWER: False
,T or F: In financial planning, it is important to consider the tax implications of various
investments - ANSWER: True
T or F: Retirement planning optimally begins when people are in their 40s or 50s -
ANSWER: False
T or F: Financial plans are not influenced by the economic environment - ANSWER:
False
The federal government
A) plays a major role in regulating economic activity
B) is both a customer of business and an employer of consumers
C) levies taxes primarily on real estate and personal property
D) plays a major role in regulating economic activity AND is both a customer of
businesses and an employer of consumers - ANSWER: D) plays a major role in
regulating economic activity AND is both a customer of businesses and an employer
of consumers
T or F: Businesses ultimately determine the kinds of goods and services to provide to
customers - ANSWER: False - consumer choices ultimately determine the kinds of
goods/services businesses will provide
The federal government's monetary policy
A) controls the amount of money in circulation
B) determines the spending for social services, education, defense, and other
programs
C) controls the increase or decrease in taxes
D) does all of these choices - ANSWER: A) controls the amount of money in
circulation
Real GDP is decreasing during
A) an expansion
B) a peak
C) a contraction
D) a trough - ANSWER: C) a contraction
In which state of an economic cycle does real GDP increase until it hits a peak?
A) expansion
B) peak
C) contraction
D) trough - ANSWER: A) expansion
T or F: Economic growth in America is measured by changes in the consumer price
index (CPI) - ANSWER: False
If your salary increased 4% last year and inflation averaged 4%, your purchasing
power would
, A) have increased
B) have decreased
C) have remained the same
D) be impossible to tell - ANSWER: C) have remained the same
Higher rates of inflation usually cause
A) higher interest rates
B) lower monthly car payments
C) lower mortgage rates
D) an increased purchasing power of money - ANSWER: A) higher interest rates
When applying for a job within a large nationwide company, you notice that salaries
for the same position differ based on geographic region. In which of the following
regions would you most likely receive the highest salary?
A) small town in the Midwest
B) metropolitan area in the Northeast
C) rural area in the west
D) metropolitan area in the south - ANSWER: B) metropolitan area in the Northeast
T or F: Typically, people with low incomes fall into the middle age and older age
groups, with the lowest earnings generally occurring between the ages of 55 and 64.
- ANSWER: False
T or F: A person with a master's degree will likely earn more income than a person
with a professional degree - ANSWER: False
The average American starting a career today can expect to have
A) three jobs with the same employer
B) at least ten jobs with five or more employers
C) one job for life
D) at least fifteen jobs with ten or more employers - ANSWER: B) at least ten jobs
with five or more employers
T or F: Career planning and personal financial planning are distinct, unrelated
activities - ANSWER: False
T or F: The first step in career planning is to set long-term and short-term career
goals - ANSWER: False - the first step is to identify your interests, skills, needs, and
values
Which of the following measures your financial condition so you can establish
realistic financial goals and evaluate your progress toward those goals?
a. Financial plans
b. Budgets
c. Financial planners
d. Personal financial statements - ANSWER: d. Personal financial statements
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kushboopatel6867. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76800 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now