Test Bank Personal Finance 13th Edition By Jack Kapoor A+

$35.00
Test Bank Personal Finance 13th Edition By Jack Kapoor A+

Test Bank Personal Finance 13th Edition By Jack Kapoor A+

$35.00
Test Bank Personal Finance 13th Edition By Jack Kapoor A+

Test Bank Personal Finance 13th Edition By Jack Kapoor

Personal Finance, 13e (Kapoor)

Chapter 1 Personal Finance Basics and the Time Value of Money

1) Increased demand for a product or service will usually result in lower prices for the item.

Answer: FALSE

Difficulty: 1 Easy

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

2) Inflation reduces the buying power of the dollar.

Answer: TRUE

Difficulty: 1 Easy

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

3) Lenders benefit more than borrowers in times of high inflation.

Answer: FALSE

Difficulty: 3 Hard

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

4) Economics is the study of using money to achieve financial goals.

Answer: FALSE

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

5) Reduced spending causes unemployment from staff reduction.

Answer: TRUE

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

6) A financial plan is another name for a budget.

Answer: FALSE

Difficulty: 2 Medium

Topic: Financial plan development

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

7) Developing and using a budget is part of the "obtaining" component of financial planning.

Answer: FALSE

Difficulty: 1 Easy

Topic: Components of Financial Planning

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

8) Planning to buy a car is an example of an intangible-purchase goal.

Answer: FALSE

Difficulty: 2 Medium

Topic: Financial Goals

Learning Objective: 01-03 Develop personal financial goals.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

9) Opportunity costs refer to what a person gives up when making a choice.

Answer: TRUE

Difficulty: 2 Medium

Topic: Opportunity Costs

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

10) Personal opportunity costs refer to time, effort, and health that are given up when a decision is made.

Answer: TRUE

Difficulty: 2 Medium

Topic: Opportunity Costs

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

11) Time value of money refers to changes in consumer spending when inflation occurs.

Answer: FALSE

Difficulty: 2 Medium

Topic: Time value of money - interest rates and inflation

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

12) Interest on savings is calculated by multiplying the principal amount times the opportunity cost times the annual interest rate.

Answer: FALSE

Difficulty: 3 Hard

Topic: Time value of money - interest rates and inflation

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

13) Present value is often referred to as compounding.

Answer: FALSE

Difficulty: 2 Medium

Topic: Present Value

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

14) Opportunity costs may be viewed only in terms of financial resources.

Answer: FALSE

Difficulty: 1 Easy

Topic: Opportunity Costs

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

15) Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders, excluding items produced with foreign resources.

Answer: FALSE

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

16) Trade balance is defined as the difference between a country's exports and its imports.

Answer: TRUE

Difficulty: 1 Easy

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

17) The main goal of personal financial planning is managing your money to:

A) save and invest for future needs.

B) reduce a person's tax liability.

C) achieve personal economic satisfaction.

D) spend to achieve financial objectives.

E) save, spend, and borrow based on current needs.

Answer: C

Difficulty: 1 Easy

Topic: Financial Planning Process

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

18) Inflation is likely to result from:

A) lower demand by consumers.

B) increased production by business.

C) lower interest rates.

D) increased demand by consumers without increased supply.

E) an increase in the supply of a product.

Answer: D

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

19) Who is most likely to benefit from inflation?

A) Retired people

B) Lenders

C) Borrowers

D) Low-income consumers

E) Government

Answer: C

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

20) Higher consumer prices are likely to be accompanied by:

A) lower union wages.

B) lower interest rates.

C) lower production costs.

D) higher interest rates.

E) higher exports.

Answer: D

Difficulty: 3 Hard

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

21) With an inflation rate of 8 percent, prices would double in about ________ years.

A) 4

B) 6

C) 9

D) 10

E) 12

Answer: C

Explanation: Rule of 72, 72/8 = 9

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Apply

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

22) Increased consumer spending will usually cause:

A) lower consumer prices.

B) reduced employment levels.

C) lower wages.

D) lower interest rates.

E) higher employment levels.

Answer: E

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

23) Higher interest rates can be caused by:

A) a lower money supply.

B) an increase in the money supply.

C) a decrease in consumer borrowing.

D) lower consumer spending.

E) increased saving and investing by consumers.

Answer: A

Difficulty: 3 Hard

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

24) The risk premium you receive as a saver is based:

A) on your credit rating.

B) on the amount of money you are borrowing.

C) only on the uncertainty associated with getting your money back.

D) only on the expected rate of inflation.

E) in part on the uncertainty associated with getting your money back and the expected rate of inflation.

Answer: E

Difficulty: 3 Hard

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

25) Which of the following would increase the risk of a loan to the lender?

A) Inflation rate greater than loan rate

B) A short time to maturity

C) Consumer Price Index

D) Rule of 72

E) Inflation rate lower than loan rate

Answer: A

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

26) The stages in the family and financial needs of an adult are called the:

A) financial planning process.

B) budgeting procedure.

C) personal economic cycle.

D) adult life cycle.

E) tax planning process.

Answer: D

Difficulty: 1 Easy

Topic: Life Cycle

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

27) The study of how wealth is created and distributed is:

A) financial planning.

B) opportunity cost.

C) inflation.

D) economics.

E) a market economy.

Answer: D

Difficulty: 1 Easy

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

28) The main economic influence that causes inflation is:

A) Changes in the stock market.

B) Decreases in interest rates.

C) Increases in employment.

D) Decreases in government spending.

E) Increases in demand without increases in supply.

Answer: E

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

29) The Fed refers to:

A) government regulation of business.

B) Congress.

C) the Federal Reserve System.

D) the Federal Deposit Insurance Corporation.

E) spending by the federal government.

Answer: C

Difficulty: 2 Medium

Topic: Financial system

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

30) The main responsibility of The Fed is to:

A) maintain an adequate supply of money.

B) approve spending by Congress.

C) set federal income tax rates.

D) determine illegal business activities.

E) maintain a balanced budget for the federal government.

Answer: A

Difficulty: 2 Medium

Topic: Financial system

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

31) Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds. This problem refers to:

A) inflation risk.

B) interest rate risk.

C) income risk.

D) personal risk.

E) liquidity risk.

Answer: E

Difficulty: 2 Medium

Topic: Liquidity

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

32) Which of the following would cause consumer prices to drop?

A) Increased consumer borrowing

B) Higher spending by consumers

C) A demand for higher wages

D) Hidden inflation

E) Increased supply by business without increased consumer demand

Answer: E

Difficulty: 3 Hard

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

33) Attempts to increase financial resources are part of the ________ component of financial planning.

A) planning

B) obtaining

C) saving

D) sharing

E) protecting

Answer: B

Difficulty: 1 Easy

Topic: Components of Financial Planning

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

34) A major activity in the planning component of financial planning is:

A) selecting insurance coverage.

B) evaluating investment alternatives.

C) gaining occupational training and experience.

D) anticipating spending through budgeting.

E) establishing a line of credit.

Answer: D

Difficulty: 2 Medium

Topic: Components of Financial Planning

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

35) The ability to readily convert financial resources into cash without loss of value is referred to as:

A) bankruptcy.

B) liquidity.

C) investing.

D) saving.

E) opportunity cost.

Answer: B

Difficulty: 1 Easy

Topic: Liquidity

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

36) The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

A) sharing

B) saving

C) obtaining

D) borrowing

E) protecting

Answer: D

Difficulty: 1 Easy

Topic: Components of Financial Planning

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

37) A question associated with the saving component of financial planning is:

A) Do you have an adequate emergency fund?

B) Is your will current?

C) Is your investment program appropriate to your income and tax situation?

D) Do you have a realistic budget for your current financial situation?

E) Are your transportation expenses minimized through careful planning?

Answer: A

Difficulty: 1 Easy

Topic: Components of Financial Planning

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

38) A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a(n):

A) insurance prospectus.

B) financial plan.

C) budget.

D) investment forecast.

E) statement.

Answer: B

Difficulty: 2 Medium

Topic: Financial plan development

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

39) When an individual makes a purchase without considering the financial consequences of that purchase, he/she ignores the ________ aspect of financial planning.

A) borrowing

B) risk management

C) spending

D) retirement and estate planning

E) obtaining

Answer: C

Difficulty: 1 Easy

Topic: Components of Financial Planning

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

40) The success of a financial plan will be determined by:

A) the amount of debts owed.

B) the stage of the adult life cycle.

C) a person's tax status.

D) the individual's financial habits.

E) current economic conditions.

Answer: D

Difficulty: 2 Medium

Topic: Components of Financial Planning

Learning Objective: 01-05 Identify strategies for achieving personal financial goals for different life situations.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

41) As Olivia Wilson plans to set aside funds for her young children's college education, she is setting a(n) ________ goal.

A) intermediate

B) long-term

C) short-term

D) intangible

E) durable

Answer: B

Difficulty: 1 Easy

Topic: Financial Goals

Learning Objective: 01-03 Develop personal financial goals.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

42) ________ goals relate to personal relationships, health, and education.

A) Durable-product

B) Short-term

C) Consumable-product

D) Intangible-purchase

E) Intermediate

Answer: D

Difficulty: 2 Medium

Topic: Financial Goals

Learning Objective: 01-03 Develop personal financial goals.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

43) William Davis has a goal of "saving $60 a month for vacation." William's goal lacks:

A) measurable terms.

B) a realistic perspective.

C) specific terms.

D) the type of action to be taken.

E) a time frame.

Answer: E

Difficulty: 2 Medium

Topic: Financial Goals - SMART approach

Learning Objective: 01-03 Develop personal financial goals.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

44) Which of the following goals would be the easiest to implement and measure its accomplishment?

A) "Reduce our debt payments."

B) "Save funds for an annual vacation."

C) "Save $50 a month to create a $2,000 emergency fund."

D) "Invest $1,200 a year for retirement."

E) "Increase our emergency fund."

Answer: C

Difficulty: 2 Medium

Topic: Financial Goals - SMART approach

Learning Objective: 01-03 Develop personal financial goals.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

45) Opportunity cost refers to:

A) money needed for major consumer purchases.

B) what a person gives up by making a choice.

C) the amount paid for taxes when a purchase is made.

D) current interest rates.

E) evaluating different alternatives for financial decisions.

Answer: B

Difficulty: 2 Medium

Topic: Opportunity Costs

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

46) An example of a personal opportunity cost would be:

A) interest lost by using savings to make a purchase.

B) higher earnings on savings that must be kept on deposit a minimum of six months.

C) lost wages due to continuing as a full-time student.

D) time comparing several brands of personal computers.

E) having to pay a tax penalty due to not having enough withheld from your monthly salary.

Answer: D

Difficulty: 2 Medium

Topic: Opportunity Costs

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

47) The time value of money refers to:

A) opportunity costs such as time lost on an activity.

B) financial decisions that require borrowing funds from a financial institution.

C) changes in interest rates due to changes in the supply and demand for money in our economy.

D) increases in an amount of money as a result of interest earned.

E) changing demographic trends in our society.

Answer: D

Difficulty: 2 Medium

Topic: Time value of money - interest rates and inflation

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

48) The amount of interest is determined by multiplying the amount in savings by the:

A) annual interest rate.

B) time period.

C) number of months in a year.

D) time period and number of months.

E) annual interest rate and the time period.

Answer: E

Difficulty: 2 Medium

Topic: Time value of money - interest rates and inflation

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

49) If a person deposited $75 a month for 5 years earning 7 percent, this would involve what type of computation?

A) Simple interest

B) Future value of a single amount

C) Future value of a series of deposits

D) Present value of a single amount

E) Present value of a series of deposits

Answer: C

Difficulty: 3 Hard

Topic: Time value of money - Future Value

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

50) Which type of computation would a person use to determine the current value of a desired amount in the future?

A) Simple interest

B) Future value of a single amount

C) Future value of a series of deposits

D) Present value of a single amount

E) Compound interest

Answer: D

Difficulty: 2 Medium

Topic: Time value of money - Present Value

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

51) If inflation is increasing at 4 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

A) 24 years

B) 18 years

C) 14 years

D) 12 years

E) 6 years

Answer: B

Explanation: Rule of 72: 72/4 = 18

Difficulty: 3 Hard

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Apply

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

52) When prices are increasing at a rate of 12 percent, the cost of products would double in about how many years?

A) 24 years

B) 18 years

C) 12 years

D) 6 years

E) 3 years

Answer: D

Explanation: Rule of 72: 72/12 = 6

Difficulty: 2 Medium

Topic: Economic conditions and factors

Learning Objective: 01-02 Assess personal and economic factors that influence personal financial planning.

Bloom's: Apply

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

53) Future value calculations involve:

A) discounting.

B) add-on interest.

C) compounding.

D) simple interest.

E) an annuity.

Answer: C

Difficulty: 2 Medium

Topic: Time value of money - Future Value

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

54) If you put $500 in a savings account and make no further deposits, what type of calculation would provide you with the value of the account in 10 years?

A) Future value of a single amount

B) Simple interest

C) Present value of a single amount

D) Present value of a series of deposits

E) Future value of a series of deposits

Answer: A

Difficulty: 2 Medium

Topic: Time value of money - Future Value

Learning Objective: 01-04 Calculate time value of money to analyze personal financial decisions.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

55) The first step of the financial planning process is to:

A) develop financial goals.

B) implement the financial plan.

C) determine your current financial situation.

D) review and revise your financial plan.

E) create a financial action plan.

Answer: C

Difficulty: 1 Easy

Topic: Financial Planning Process

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

56) ________ risk refers to the danger of changes in buying power during times of rising or falling prices.

A) Liquidity

B) Income

C) Personal

D) Inflation

E) Interest Rate

Answer: D

Difficulty: 2 Medium

Topic: Investment risks and measures

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

57) Which of the following is an example of opportunity cost?

A) Renting an apartment near school

B) Saving money instead of taking a vacation

C) Setting aside money for paying income tax

D) Purchasing automobile insurance

E) Using a personal computer for financial planning

Answer: B

Difficulty: 2 Medium

Topic: Opportunity Costs

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Understand

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

58) The changing cost of money when borrowing is referred to as ________ risk.

A) interest rate

B) inflation

C) income

D) liquidity

E) personal

Answer: A

Difficulty: 2 Medium

Topic: Investment risks and measures

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

59) The uncertainty associated with every decision is referred to as:

A) opportunity cost.

B) selection of alternatives.

C) financial goals.

D) personal values.

E) risk.

Answer: E

Difficulty: 1 Easy

Topic: Investment risks and measures

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

60) The financial planning process concludes with efforts to:

A) develop financial goals.

B) create a financial action plan.

C) determine your current financial situation.

D) implement the financial action plan.

E) review and revise your financial plan.

Answer: E

Difficulty: 1 Easy

Topic: Financial Planning Process

Learning Objective: 01-01 Analyze the process for making personal financial decisions.

Bloom's: Remember

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

61) Using the services of financial institutions to research a situation will be most evident in your effort to:

A) develop financial goals.

B) review and revise your financial plan.

C) determine your current financial situation.

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