Personal Finance, 6e (Madura)
Chapter 1 Overview of a Financial Plan
1.1 How You Benefit from Personal Finance
1) Most Americans will never be able to understand and develop a personal financial plan.
Answer: FALSE
Diff: 1
Question Status: Previous edition
2) The simple objecti...
,Personal Finance, 6e (Madura)
Chapter 1 Overview of a Financial Plan
1.1 How You Benefit from Personal Finance
1) Most Americans will never be able to understand and develop a personal financial plan.
Answer: FALSE
Diff: 1
Question Status: Previous edition
2) The simple objective of financial planning is to make the best use of your resources to achieve
your financial goals.
Answer: TRUE
Diff: 2
Question Status: Previous edition
3) An understanding of personal finance is not necessary to judge the quality of advice that a
financial adviser may give.
Answer: FALSE
Diff: 1
Question Status: Previous edition
4) The first step in budgeting is to evaluate your current financial position by looking at just your
income and expenses.
Answer: FALSE
Diff: 2
Question Status: Previous edition
5) The value of what you own minus the value of what you owe is called your net worth.
Answer: TRUE
Diff: 2
Question Status: Previous edition
6) An example of an opportunity cost is the wages that you could have earned but did not
because you were in class.
Answer: TRUE
Diff: 1
Question Status: Previous edition
7) Various government agencies have conducted surveys that show most people have a good
understanding of personal finance.
Answer: FALSE
Diff: 1
Question Status: Previous edition
,8) A good understanding of the financial planning process will allow you to make informed
decisions without relying on the advice of financial advisers.
Answer: FALSE
Diff: 2
Question Status: Previous edition
9) A thorough understanding of this personal finance book qualifies you to become a financial
adviser.
Answer: FALSE
Diff: 2
Question Status: Previous edition
10) In the United States the level of savings is about
A) 50% of income earned.
B) 25% of income earned.
C) 4.5% of income earned.
D) less than 1% of income earned.
Answer: C
Diff: 1
Question Status: Revised
11) Personal finance does not include the process of planning your
A) spending.
B) financing.
C) investing.
D) spirituality.
Answer: D
Diff: 1
Question Status: Previous edition
12) Which item is not one of the components of a personal financial plan?
A) Setting aside money for season tickets to your favorite football team
B) Investing your money
C) Planning your retirement
D) Budgeting
Answer: A
Diff: 1
Question Status: New
, 14) Opportunity cost refers to
A) money needed for major consumer purchases.
B) what you give up or forego as a result of making a decision.
C) the amount paid for taxes when a purchase is made.
D) evaluating different alternatives for financial decisions.
Answer: B
Diff: 1
Question Status: Previous edition
15) Which of the following is an example of an opportunity cost?
A) Renting an apartment near school
B) Taking a class instead of working at your part-time job
C) Setting aside money for paying income tax
D) Purchasing automobile insurance
Answer: B
Diff: 2
Question Status: Previous edition
16) All of the following are true with regard to the demand for financial advisers except
A) many people lack an understanding of personal finance.
B) many people prefer to rely on advisers rather than making their own decision.
C) many people are just not interested in making their own financial decisions.
D) the law requires that you use advisers before making investments.
Answer: D
Diff: 2
Question Status: Revised
17) "Big spenders" focus their budgeting decisions on
A) reducing expenses.
B) increasing income.
C) spending most of their income.
D) saving most of their income.
Answer: C
Diff: 1
Question Status: Previous edition
18) "Big savers" focus their budget decisions on
A) reducing expenses.
B) increasing income.
C) spending most of their income.
D) saving most of their income.
Answer: D
Diff: 1
Question Status: Previous edition
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur ExamsExpert. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €21,47. Vous n'êtes lié à rien après votre achat.
