Personal Financial Planning 14th Edition

Instructors Manual To support your use of 14th Edition of Personal Financial Planning By Randall S. Billingsley, PhD, FRM, CFA, Virginia Tech Lawrence J. Gitman, PhD, CFP, San Diego State University Michael D. Joehnk, PhD, CFA Arizona State University Thank you for reading this instructors manual. If I were you, I would not read it because I

Test Yourself Questions 1-1 What is a standard of living? What factors affect the quality of life? Standard of living, which varies from person to person, represents the necessities, comforts, and luxuries enjoyed by a person. It is reflected in the material items a person owns, as well as the costs

Financial Planning Exercises 1. Benefits of Personal Financial Planning. How can using personal financial planning tools help you improve your financial situation? Describe changes you can make in at least three areas. Student answers will vary. In general, personal financial planning tools help individuals to organize their finances, evaluate their current financial

Financial Planning Exercises 1. Co-insurance clauses. Assume that Tina Walsh had a homeowners insurance policy with $100,000 of coverage on the dwelling. Would a 90 percent co-insurance clause be better than an 80 percent clause in such a policy? Give reasons to support your answer. Co-insurance, a provision commonly found in property insurance

11-22 What are some products and services that you, as an individual investor, can now obtain online? Whatever there is, it is available online. Some commonly available stuff include brokerage services, reports, heard on the street, business news, and many other. Brands include CNN/Money, Yahoo.com, Fidelity.com, etc. services, reports, heard on the

Critical Thinking Cases 11.1 The Woodsons Struggle with Two Investment Goals Like many married couples, Damian and Brandi Woodson are trying their best to save for two important investment objectives: (1) an education fund to put their two children through college; and (2) a retirement nest egg for themselves. They want

Investing in Stocks and Bonds Chapter 12 How Will This Affect Me? Once youve figured out how much you need to invest to meet important financial goals, its time to decide which specific investments to buy. This chapter describes the basic characteristics of stocks and bonds, explains their potential returns and risks, and provides

Financial Planning Exercises 1. Ranking investments by expected returns. What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. a. Buy a stock for $30 a share, hold it for three years, and then sell it

Criterial Thinking Cases 12.1 The Madsens Problem: What to Do with All That Money? A couple in their early 30s, Rodney and Carly Madsen recently inherited $90,000 from a relative. Charles earns a comfortable income as a sales manager for System Analytics, Inc., and Carly does equally well as an attorney with

Financial Planning Exercises 1. Estimating cost of mutual fund investments. Using the mutual fund quotes in Exhibit 13.4, and assuming that you can buy these funds at their quoted NAVs, how much would you have to pay to buy each of the following funds? a. American Century Emerging Markets Fund, A

Criterial Thinking Cases 13.1 Damons Dilemma: Common Stocks, Mutual Funds, or ETFs? Damon Bellamy has worked in the management services division of Niche Consultants for the past five years. He currently earns an annual salary of about $120,000. At 33, hes still a bachelor and has accumulated about $100,000 in savings over the

Financial Planning Exercises 1. Calculating amount available at retirement. Marisa Gale, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has designated $3,000 per year for her retirement fund and assumes that shell retire at age 65.

Criterial Thinking Cases 14.1 Comparing Pension Plan Features Linda Calloway and Meredith Perdue are neighbors in Charleston. Linda works as a software engineer for Progressive Apps Corporation, while Sherry works as an executive for Industrial Container Company. Both are married, have two children, and are well paid. Linda and Meredith are interested in

Preserving Your Estate Chapter 15 How Will This Affect Me? No, you cant take it with you . But theres a next best thing: A carefully designed estate plan will allow your loved ones and family to keep as much of your accumulated wealth as possible. This chapter explains the role of estate

Financial Planning Exercises 1. Estate planning objectives. Generate a list of estate planning objectives that apply to your personal family situation. Be sure to consider the size of your potential estate as well as people planning and asset planning. Estate planning is not just about taxes. The student may not share information

Critical Thinking Questions 1. Compute the value of Sauls probate estate. The probate estate consists of the gross estate less non-probate assets. The gross estate amount of $4,610,000 is calculated in #1 above. Sauls non-probate assets consist of his life insurance policy ($700,000) and his pension fund ($645,000) which will pass by contract

Chapter Using Financial Statements and Budgets Chapter 2 How Will This Affect Me? Recent polls show that 57 percent of households have no budget, and 50 percent of Americans have less than one month of savings set aside for emergencies.* These are scary numbers . . . and this chapter shows what you can do

3-a. Solvency Ratio: This term refers to having a positive net worth. The calculation for her solvency ratio is as follows: Solvency Ratio = Total Net Worth = $27,295 = 32.46%Total Assets $84,095 Solvency Ratio = Total Net Worth = $27,295 = 32.46%Total Assets $84,095 Solvency Ratio = Total Net Worth = $27,295

Solutions to Critical Thinking Cases 2.1 The Beckers Version of Financial Planning Terry and Evelyn Becker are a married couple in their mid-20s. Terry has a good start as an electrical engineer and Evelyn works as a sales representative. Since their marriage four years ago, Terry and Evelyn have been living

Preparing Your Taxes Chapter 3 How Will This Affect Me? Theres an old joke that people who complain about taxes can be divided into two groups: men and women. This chapter helps you pursue the tax-planning goal of maximizing the money that you get to keep by legally minimizing the taxes you have

Solutions to Test Yourself Questions 3-1 What is a progressive tax structure and the economic rationale for it? The progressive tax structure uses a progressive tax rate where the rate increases [ from 10% to 39.6% as taxable income increases. The economic concepts supporting the progressive tax are ability-to-pay and marginal

3.1 The Andersons Tackle Their Tax Return Noah and Olivia Anderson are a married couple in their early 20s living in Dallas. Noah Anderson earned $73,000 in 2014 from his job as a sales assistant. During the year, his employer withheld $4,975 for income tax purposes. In addition, the Andersons received

Managing Your Cash and Savings Chapter 4 How Will This Affect Me? Finding the best mix of alternative cash management accounts and assets requires careful cost/benefit analysis based on your personal objectives and constraints. This chapter presents a variety of different alternatives and focuses on key characteristics that include minimum balances, interest rate returns

4-14 Is it possible to bounce a check because of insufficient funds when the checkbook ledger shows a balance available to cover it? Explain what happens when a check bounces. Can you obtain protection against overdrafts? It is possible to bounce a check due to insufficient funds when the checkbook ledger

Critical Thinking Cases 4.1 June Xus Savings and Banking Plans June Xu is a registered nurse who earns $3,250 per month after taxes. She has been reviewing her savings strategies and current banking arrangements to determine if she should make any changes. June has a regular checking account that charges her a

Making Automobile and Housing Decisions Chapter 5 How Will This Affect Me? A home is typically the largest single investment youll ever make, and a car is usually the second largest. As a result, the decisions to buy and finance these assets are important, personal, and complicated. This chapter presents frameworks for deciding when

5-15 What role does a real estate agent play in the purchase of a house? What is the benefit of the MLS? How is the real estate agent compensated, and by whom? Most home buyers rely on real estate agents because theyre professionals who are in daily contact with the housing

9. Rent vs Buy home. Use Worksheet 5.2. Denise Green is currently renting an apartment for $725 per month and paying $275 annually for renters insurance. She just found a small townhouse that she can buy for $185,000. She has enough cash for a $10,000 down payment and $4,000 in closing costs.

5.3 Julies Rent-or-Buy Decision Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,200 a month. After much thought, shes seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expects that closing

Using Credit Chapter 6 How Will This Affect Me? The ability to borrow funds to buy goods and services is as convenient as it is seductive. It is important to understand how to get and maintain access to credit and convenient transactions via credit cards, debit cards, lines of credit, and other means.

6-13 Describe credit scoring and explain how its used (by lenders) in making a credit decision. Using the data provided by the credit applicant, along with any information obtained from the credit bureau, the store or bank must decide whether to grant credit. Very likely, some type of credit scoring scheme

14. Evaluating loan request. Carter Hall recently graduated from college and wants to borrow $50,000 to start a business, which he believes will produce a cash flow of at least $10,000 per year. As a student, Carter was active in clubs, held many leadership positions, and did a lot of

Using Consumer Loans Chapter 7 How Will This Affect Me? Consumer loan sources abound, and their terms vary significantly. The primary types are single- payment and installment consumer loans. Its important to understand when to use each credit source, to be able to calculate and compare their costs, and to determine the circumstances in

Financial Planning Exercises 1. Student loan options. Marilyn Seacrest is a sophomore at State College and is running out of money. Wanting to continue her education, Marilyn is considering a student loan. Explain her options. How can she minimize her borrowing costs and maximize her flexibility? Exhibit 7.1 gives basic information on

13. Deciding whether to pay cash or finance a purchase. Use Worksheet 7.2. Elizabeth Erlich wants to buy a home entertainment center. Complete with a big-screen TV, DVD, and sound system, the unit would cost $4,500. Elizabeth has over $15,000 in a money fund, so she can easily afford to

Insuring Your Life Chapter 8 How Will This Affect Me? Insurance should be used only to protect against potentially catastrophic losses, not for small-risk exposures. It should cover losses that could derail your familys future. It balances the relatively small, certain loss of ongoing premiums against low-probability, high-cost risks. This chapter focuses on how

8-21 Explain the basic settlement options available for the payment of life insurance proceeds upon a persons death. Lump sum: This is the most common settlement option, chosen by more than 95 percent of policyholders. The entire death benefit is paid in a single amount, allowing beneficiaries to use orinvest

Critical Thinking Cases 8.1 Jun Hsiehs Insurance Decision: Whole Life, Variable Life, or Term Life? Jun Hsieh, a 38-year-old widowed mother of three children (ages 12, 10, and 4), works as a product analyst for Panama Hats. Although shes covered by a group life insurance policy at work, she feels, based

Insuring Your Health Chapter 9 How Will This Affect Me? Having adequate health insurance is critically important to your financial plan. Health care costs have grown dramatically in recent years, and a major illness or accident could wipe you and your family out financially if you are uninsured. Yet health insurance policies are complicated

9-18 What are the key provisions of COBRA? How do they relate to continuation of group coverage when an employee voluntarily or involuntarily leaves the insured group? When employees voluntarily or involuntarily (except in the case of gross misconduct) leave their jobs and therefore give up membership in the insurance group, they

Critical Thinking Questions 1. Explain the policy provisions as they relate to deductibles, co-insurance, and internal limits. $3,000 deductible: He must incur $3,000 in costs before the policy will pay anything, 80% co-insurance: After the deductible is met, the policy will pay 80% of the costs. He is responsible for the other 20%

Chapter 1Understanding the Financial Planning Process Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.1-1 - LO: 1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS:

Chapter 1Understanding the Financial Planning Process Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or family.

Chapter 1Understanding the Financial Planning Process Cengage Learning Testing, Powered by Cognero Page 33 Cengage Learning Testing, Powered by Cognero Page 33 Cengage Learning Testing, Powered by Cognero Page 33 ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.1-4 - LO: 1-4 NATIONAL STANDARDS: United States - BUSPROG:

Chapter 10Protecting Your Property Cengage Learning Testing, Powered by Cognero Page 37 Cengage Learning Testing, Powered by Cognero Page 37 Cengage Learning Testing, Powered by Cognero Page 37 ANSWER: e POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.10-2 - LO: 10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic skills

Chapter 10Protecting Your Property Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 KEYWORDS: Bloom's: Applying 74. Your standard HO policy will not include coverage for damage done by a.

Chapter 10Protecting Your Property Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Property insurance is meant to protect property owners from two basic types of exposures, physical loss of property and

Chapter 11Investment Planning Cengage Learning Testing, Powered by Cognero Page 35 Cengage Learning Testing, Powered by Cognero Page 35 Cengage Learning Testing, Powered by Cognero Page 35 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.11-1 - LO: 11-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills STATE

Chapter 11Investment Planning Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Investing is considered a short-term activity that involves the buying and selling of securities. a. True b. False

Chapter 11Investment Planning Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 73. Investment vehicles include a. common stock. b. bonds. c. preferred and convertible securities. d. real estate.

Chapter 12Investing in Stocks and Bonds Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Market risk considers the possibility that the firm may fail. a. True b. False ANSWER:

Chapter 12Investing in Stocks and Bonds United States - KS - DISC: Stocks and Bonds KEYWORDS: Bloom's: Analyzing United States - KS - DISC: Stocks and Bonds KEYWORDS: Bloom's: Analyzing United States - KS - DISC: Stocks and Bonds KEYWORDS: Bloom's: Analyzing Cengage Learning Testing, Powered

Chapter 12Investing in Stocks and Bonds Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 e. security price fluctuations. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.12-1 - LO: 12-1 NATIONAL

Chapter 13Investing in Mutual Funds Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Closed-ended mutual funds are guaranteed, they cannot lose value. a. True b. False ANSWER: False POINTS:

Chapter 13Investing in Mutual Funds Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 LEARNING OBJECTIVES: PFIN.BILL.17.13-6 - LO: 13-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills STATE

Chapter 13Investing in Mutual Funds Cengage Learning Testing, Powered by Cognero Page 36 Cengage Learning Testing, Powered by Cognero Page 36 Cengage Learning Testing, Powered by Cognero Page 36 ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.13-3 - LO: 13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic

Chapter 14Planning for Retirement Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 KEYWORDS: Bloom's: Understanding 75. Annuities may provide survivor's benefits. a. True b. False ANSWER: True POINTS:

Chapter 14Planning for Retirement Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Most people are too conservative when investing their retirement funds. a. True b. False ANSWER: True POINTS:

Chapter 14Planning for Retirement Cengage Learning Testing, Powered by Cognero Page 41 Cengage Learning Testing, Powered by Cognero Page 41 Cengage Learning Testing, Powered by Cognero Page 41 a. $5,000 b. $4,250 c. $2,500 d. $ 750 e. $ 0 ANSWER: d POINTS:

Chapter 15Preserving Your Estate Cengage Learning Testing, Powered by Cognero Page 38 Cengage Learning Testing, Powered by Cognero Page 38 Cengage Learning Testing, Powered by Cognero Page 38 ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.15-4 - LO: 15-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking

Chapter 15Preserving Your Estate Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. The main objective of estate planning is to save attorney's fees. a. True b. False ANSWER: False

Chapter 15Preserving Your Estate Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 KEYWORDS: Bloom's: Remembering 71. The adjusted gross estate is calculated by subtracting any allowable marital deduction or charitable

Chapter 2Using Financial Statements and Budgets Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. A personal balance sheet shows your financial condition as of the time the statement is prepared.

Chapter 2Using Financial Statements and Budgets Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 a. $200,000 asset and $55,000 liability b. $200,000 asset and $90,000 liability c. $175,000 asset

Chapter 2Using Financial Statements and Budgets Cengage Learning Testing, Powered by Cognero Page 39 Cengage Learning Testing, Powered by Cognero Page 39 Cengage Learning Testing, Powered by Cognero Page 39 113. Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for

Chapter 3Preparing Your Taxes Cengage Learning Testing, Powered by Cognero Page 39 Cengage Learning Testing, Powered by Cognero Page 39 Cengage Learning Testing, Powered by Cognero Page 39 d. Tax attorneys e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.3-5 -

Chapter 3Preparing Your Taxes Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. The federal personal income tax is a progressive tax. a. True b. False ANSWER: True POINTS: 1

Chapter 3Preparing Your Taxes Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.3-5 - LO: 3-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills

Chapter 4Managing Your Cash and Savings Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: PFIN.BILL.17.4-1 - LO: 4-1

Chapter 4Managing Your Cash and Savings Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. One could expect to earn a higher rate of interest on a certificate of deposit than on

Chapter 4Managing Your Cash and Savings Cengage Learning Testing, Powered by Cognero Page 39 Cengage Learning Testing, Powered by Cognero Page 39 Cengage Learning Testing, Powered by Cognero Page 39 POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.4-4 - LO: 4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic skills

Chapter 5Making Automobile and Housing Decisions of Capital KEYWORDS: Bloom's: Remembering of Capital KEYWORDS: Bloom's: Remembering of Capital KEYWORDS: Bloom's: Remembering Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21

Chapter 5Making Automobile and Housing Decisions Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. The greatest fixed cost involved with owning an automobile is usually the monthly loan payments. a.

Chapter 5Making Automobile and Housing Decisions Cengage Learning Testing, Powered by Cognero Page 41 Cengage Learning Testing, Powered by Cognero Page 41 Cengage Learning Testing, Powered by Cognero Page 41 POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.5-3 - LO: 5-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic skills

Chapter 6Using Credit Cengage Learning Testing, Powered by Cognero Page 37 Cengage Learning Testing, Powered by Cognero Page 37 Cengage Learning Testing, Powered by Cognero Page 37 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.6-4 - LO: 6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills STATE

Chapter 6Using Credit Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.6-4 - LO: 6-4 NATIONAL STANDARDS: United

Chapter 6Using Credit Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Using credit is the ideal way to provide for financial emergencies. a. True b. False ANSWER: False POINTS:

Chapter 7Using Consumer Loans Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. Even if you do have money, you may still be better off using an installment loan for a big-ticket

Chapter 7Using Consumer Loans Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 e. buy back-to-school clothes. ANSWER: e POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.7-1 - LO: 7-1 NATIONAL STANDARDS: United

Chapter 7Using Consumer Loans Cengage Learning Testing, Powered by Cognero Page 34 Cengage Learning Testing, Powered by Cognero Page 34 Cengage Learning Testing, Powered by Cognero Page 34 106. Which type of educational loan most likely carries the highest interest charges? a. Stafford loan b.

Chapter 8Insuring Your Life Cengage Learning Testing, Powered by Cognero Page 33 Cengage Learning Testing, Powered by Cognero Page 33 Cengage Learning Testing, Powered by Cognero Page 33 e. biennial ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.8-6 - LO: 8-6 NATIONAL STANDARDS: United States -

Chapter 8Insuring Your Life Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. The basic purpose of insurance is to protect you from the financial consequences of losing assets or income due

Chapter 8Insuring Your Life Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 b. loss prevention. c. risk assumption. d. risk retention. e. insurance. ANSWER: b POINTS: 1 DIFFICULTY:

Chapter 9Insuring Your Health Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 Cengage Learning Testing, Powered by Cognero Page 1 1. About 13% of Americans are not covered by health insurance. a. True b. False ANSWER: True POINTS:

Chapter 9Insuring Your Health Cengage Learning Testing, Powered by Cognero Page 33 Cengage Learning Testing, Powered by Cognero Page 33 Cengage Learning Testing, Powered by Cognero Page 33 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - KS - DISC: Risk and Return KEYWORDS:

Chapter 9Insuring Your Health Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 Cengage Learning Testing, Powered by Cognero Page 21 a. actual surgical expense. b. listed benefit schedules. c. specific percentage of actual surgical expense. d.