solution of Chapter 22"liquidity risk" from the book financial institutions and market by saunder and corenet
Show entire document
Test Item File
For
Personal Finance
by Rachel Siegel
© Flat World Knowledge, Inc. 2010
Chapter 1 Personal Financial Planning
©2010 Flat World Knowledge, Inc.
©2010 Flat World Knowledge, Inc.
Item
#
Type
Item
Answer
LO
Bloom
1
T/F
Personal financial planning includes decision making
about education, employment, housing, transportation,
and lifestyle.
T
1.1
Knowledge
2
T/F
Financial decisions are based on personal goals,
opportunities, and risks.
T
1.1
Comprehension
3
T/F
Most people begin their independent financial lives by
selling their labor to create an income.
T
1.1
Knowledge
4
T/F
Taking a second job, becoming unemployed, entering a
new career, or becoming self employed are as important
as career choices in personal financial planning.
T
1.1
Evaluation
5
T/F
Sound personal financial planning is based on a thorough
understanding of your personal circumstances and goals.
T
1.1
Comprehension
6
T/F
Personal financial planning includes decision making
about earning, spending, saving, and investing.
T
1.2
Comprehension
7
T/F
Because of unpredictability, how you finance your life does
not significantly affect the life you live.
F
1.2
Comprehension
8
T/F
Personal financial planning is a life-long process, not just
for when you are starting out.
T
1.3
Knowledge
9
T/F
Your willingness and ability to assume risk increases with
dependents, and a desire for more financial protection
decreases.
F
1.3
Analysis
10
T/F
A life insurance policy naming a spouse or dependents as
beneficiaries is an example of the impact of family
structure on financial decisions.
T
1.3
Application
11
T/F
Financial planning for pregnancy and birth includes
provisions for increased expenditures, increased costs,
and decreased tolerance for financial risk.
T
1.3
Analysis
12
T/F
A good financial plan does not have to be re-evaluated,
adjusted, or re-adjusted.
F
1.4
Comprehension
13
T/F
A good financial plan must be flexible to respond to
unanticipated needs or sudden changes in circumstances.
T
1.4
Knowledge
14
T/F
Financial planning is the process of making deliberate
decisions to get closer to your goals.
T
1.4
Knowledge
15
T/F
In setting goals, short-term wants and needs are more
important than long-term wants and needs.
F
1.4
Analysis
16
T/F
One of the most critical resources in the financial planning
process is information.
T
1.4
Knowledge
17
T/F
Personal financial planning is not affected by conditions in
the markets that make up the wider economy.
F
2.1
Knowledge
18
T/F
Understanding large-scale economic patterns and factors
indicating the health of an economy can help you make
better financial decisions.
T
2.1
Comprehension
19
T/F
Business cycles include periods of expansion and
contraction as measured by the economy’s productivity.
T
2.1
Knowledge
20
T/F
An economic depression occurs when the GDP begins to
F
2.2
Knowledge
Recently Asked Questions
- What is this question? I will exam tmr, plz help me THX
- Please refer to the attachment to answer this question. This question was created from ACFI 2012 Assignment T3 2018.docx. Additional comments: "I am having
- how Would you find the orbital speed for the revolution of the earth about the sun assuming the earth to be a perfect circle with a radius of 1.5 x 10^11?