Test Bank For Personal Finance 13th Edition by E. Thomas Garman

Chapter 03—Financial Statements, Tools, and Budgets

1. Financial planning focuses primarily on spending wisely.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: UnderstandingOTHER: AnalyticNOTES: financial planning also includes the management of risk and plans for capital accumulation 3.1DATE CREATED: 9/22/2017 12:59 AMDATE MODIFIED: 9/26/2017 1:24 AM 2. Financial planning begins by acquiring a good job that provides a person with enough extra income to manage.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: ModerateREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: UnderstandingOTHER: AnalyticNOTES: financial planning begins by examining values and setting financial goals. 3.1DATE CREATED: 9/22/2017 1:00 AMDATE MODIFIED: 9/26/2017 1:27 AM 3. Financial planning is the process of developing and implementing short-term plans to achieve financial objectives.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: RememberingOTHER: AnalyticNOTES: financial planning is long-term. 3.1DATE CREATED: 9/22/2017 1:01 AMDATE MODIFIED: 9/26/2017 1:27 AM 4. Financial planning is a single, customized plan regarding a person’s financial affairs.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: UnderstandingOTHER: AnalyticNOTES: financial planning involves a series of plans. 3.1DATE CREATED: 9/22/2017 1:03 AMDATE MODIFIED: 9/26/2017 1:29 AM 5. Financial planning is only for the rich.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: UnderstandingOTHER: AnalyticNOTES: people of all income and wealth levels benefit from doing financial planning. 3.1DATE CREATED: 9/22/2017 1:04 AMDATE MODIFIED: 9/26/2017 1:29 AM 6. Values have little impact on financial goals.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: UnderstandingOTHER: AnalyticNOTES: personal values are the starting point for setting financial goals. 3.1DATE CREATED: 9/22/2017 1:05 AMDATE MODIFIED: 9/26/2017 1:30 AM 7. It is not necessary that your values be consistent with your financial and lifestyle goals.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: UnderstandingOTHER: AnalyticNOTES: financial and lifestyle goals should be consistent with your valuesDATE CREATED: 9/22/2017 1:07 AMDATE MODIFIED: 9/26/2017 1:31 AM8. Values are fundamental beliefs regarding what consumer goods are worth.a. Trueb. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Identify your financial values, goals and strategiesQUESTION TYPE: True / FalseHAS VARIABLES: FalseKEYWORDS: Bloom’s: UnderstandingOTHER: AnalyticDATE CREATED: 9/22/2017 1:09 AMDATE MODIFIED: 9/26/2017 1:31 AM