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Test Item File For Personal Finance by Rachel Siegel Flat World Knowledge, Inc. 2010 Chapter 1 Personal Financial Planning 2010 Flat World Knowledge,...

solution of Chapter 22"liquidity risk" from the book financial institutions and market by saunder and corenet
Test Item File For Personal Finance by Rachel Siegel © Flat World Knowledge, Inc. 2010 Chapter 1 Personal Financial Planning ©2010 Flat World Knowledge, Inc.
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©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
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