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978-1305636613 Chapter 1 Solution Manual Part 1

978-1305636613 Chapter 1 Solution Manual Part 1

Instructor’s 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 […]

7 Pages | December 24, 2019
978-1305636613 Chapter 1 Solution Manual Part 2

978-1305636613 Chapter 1 Solution Manual Part 2

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, Although many factors such as geographic location, public facilities, local […]

9 Pages | December 24, 2019
978-1305636613 Chapter 1 Solution Manual Part 3

978-1305636613 Chapter 1 Solution Manual Part 3

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 10 Solution Manual Part 2

978-1305636613 Chapter 10 Solution Manual Part 2

Financial Planning Exercises 1. Co-insurance clauses. Assume that Tina Walsh had a homeowner’s 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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 11 Solution Manual Part 2

978-1305636613 Chapter 11 Solution Manual Part 2

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 11-23 Briefly describe several types of online investment tools, and […]

9 Pages | December 24, 2019
978-1305636613 Chapter 11 Solution Manual Part 3

978-1305636613 Chapter 11 Solution Manual Part 3

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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 12 Solution Manual Part 1

978-1305636613 Chapter 12 Solution Manual Part 1

Investing in Stocks and Bonds Chapter 12 How Will This Affect Me? Once you’ve figured out how much you need to invest to meet important financial goals, it’s time to decide which specific investments to buy. This chapter describes the […]

9 Pages | December 24, 2019
978-1305636613 Chapter 12 Solution Manual Part 2

978-1305636613 Chapter 12 Solution Manual Part 2

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 12 Solution Manual Part 3

978-1305636613 Chapter 12 Solution Manual Part 3

Criterial Thinking Cases 12.1 The Madsen’s 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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 13 Solution Manual Part 2

978-1305636613 Chapter 13 Solution Manual Part 2

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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 13 Solution Manual Part 3

978-1305636613 Chapter 13 Solution Manual Part 3

Criterial Thinking Cases 13.1 Damon’s 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, […]

6 Pages | December 24, 2019
978-1305636613 Chapter 14 Solution Manual Part 2

978-1305636613 Chapter 14 Solution Manual Part 2

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 14 Solution Manual Part 3

978-1305636613 Chapter 14 Solution Manual Part 3

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, […]

6 Pages | December 24, 2019
978-1305636613 Chapter 15 Solution Manual Part 1

978-1305636613 Chapter 15 Solution Manual Part 1

Preserving Your Estate Chapter 15 How Will This Affect Me? No, you can‘t take it with you . But there’s a next best thing: A carefully designed estate plan will allow your loved ones and family to keep as much […]

9 Pages | December 24, 2019
978-1305636613 Chapter 15 Solution Manual Part 2

978-1305636613 Chapter 15 Solution Manual Part 2

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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 15 Solution Manual Part 3

978-1305636613 Chapter 15 Solution Manual Part 3

Critical Thinking Questions 1. Compute the value of Saul’s 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. Saul’s non-probate assets consist of his life […]

6 Pages | December 24, 2019
978-1305636613 Chapter 2 Solution Manual Part 1

978-1305636613 Chapter 2 Solution Manual Part 1

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.* […]

9 Pages | December 24, 2019
978-1305636613 Chapter 2 Solution Manual Part 2

978-1305636613 Chapter 2 Solution Manual Part 2

3-a. Solvency Ratio: This term refers to having a positive net worth. The calculation for her solvency ratio is as follows: This indicates that Denise could withstand about a 33% decline in the market value of her assets before she […]

9 Pages | December 24, 2019
978-1305636613 Chapter 2 Solution Manual Part 3

978-1305636613 Chapter 2 Solution Manual Part 3

Solutions to Critical Thinking Cases 2.1 The Becker’s 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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 3 Solution Manual Part 1

978-1305636613 Chapter 3 Solution Manual Part 1

Preparing Your Taxes Chapter 3 How Will This Affect Me? There’s 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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 3 Solution Manual Part 2

978-1305636613 Chapter 3 Solution Manual Part 2

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. […]

9 Pages | December 24, 2019
978-1305636613 Chapter 3 Solution Manual Part 3

978-1305636613 Chapter 3 Solution Manual Part 3

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 4 Solution Manual Part 1

978-1305636613 Chapter 4 Solution Manual Part 1

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 4 Solution Manual Part 2

978-1305636613 Chapter 4 Solution Manual Part 2

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 4 Solution Manual Part 3

978-1305636613 Chapter 4 Solution Manual Part 3

Critical Thinking Cases 4.1 June Xu’s 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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 5 Solution Manual Part 1

978-1305636613 Chapter 5 Solution Manual Part 1

Making Automobile and Housing Decisions Chapter 5 How Will This Affect Me? A home is typically the largest single investment you’ll ever make, and a car is usually the second largest. As a result, the decisions to buy and finance […]

9 Pages | December 24, 2019
978-1305636613 Chapter 5 Solution Manual Part 2

978-1305636613 Chapter 5 Solution Manual Part 2

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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 5 Solution Manual Part 3

978-1305636613 Chapter 5 Solution Manual Part 3

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 renter’s insurance. She just found a small townhouse that she can buy for $185,000. She has […]

9 Pages | December 24, 2019
978-1305636613 Chapter 5 Solution Manual Part 4

978-1305636613 Chapter 5 Solution Manual Part 4

5.3 Julie’s 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, she’s seriously considering buying a condominium for $175,000. […]

9 Pages | December 24, 2019
978-1305636613 Chapter 6 Solution Manual Part 1

978-1305636613 Chapter 6 Solution Manual Part 1

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 6 Solution Manual Part 2

978-1305636613 Chapter 6 Solution Manual Part 2

6-13 Describe credit scoring and explain how it’s 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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 6 Solution Manual Part 3

978-1305636613 Chapter 6 Solution Manual Part 3

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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 7 Solution Manual Part 1

978-1305636613 Chapter 7 Solution Manual Part 1

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. It’s important to understand when to use each credit source, to […]

9 Pages | December 24, 2019
978-1305636613 Chapter 7 Solution Manual Part 2

978-1305636613 Chapter 7 Solution Manual Part 2

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 7 Solution Manual Part 3

978-1305636613 Chapter 7 Solution Manual Part 3

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 8 Solution Manual Part 1

978-1305636613 Chapter 8 Solution Manual Part 1

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 family’s future. It balances the relatively small, […]

9 Pages | December 24, 2019
978-1305636613 Chapter 8 Solution Manual Part 2

978-1305636613 Chapter 8 Solution Manual Part 2

8-21 Explain the basic settlement options available for the payment of life insurance proceeds upon a person’s death. • Lump sum: This is the most common settlement option, chosen by more than 95 percent of • Interest only: The insurance […]

8 Pages | December 24, 2019
978-1305636613 Chapter 8 Solution Manual Part 3

978-1305636613 Chapter 8 Solution Manual Part 3

Critical Thinking Cases 8.1 Jun Hsieh’s 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 she’s covered […]

9 Pages | December 24, 2019
978-1305636613 Chapter 9 Solution Manual Part 1

978-1305636613 Chapter 9 Solution Manual Part 1

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 […]

9 Pages | December 24, 2019
978-1305636613 Chapter 9 Solution Manual Part 2

978-1305636613 Chapter 9 Solution Manual Part 2

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 […]

8 Pages | December 24, 2019
978-1305636613 Chapter 9 Solution Manual Part 3

978-1305636613 Chapter 9 Solution Manual Part 3

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 […]

7 Pages | December 24, 2019
Finance Chapter 1 Sam and Lele are in their late 20s with 3 young children

Finance Chapter 1 Sam and Lele are in their late 20s with 3 young children

Chapter 1—Understanding the Financial Planning Process DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.1-1 – LO: 1-1 NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking STATE STANDARDS: United States – AK – DISC: Financial Markets and Inte – DISC: Financial Markets and Interest […]

9 Pages | October 7, 2022
Finance Chapter 1 Standard of living is defined as the necessities

Finance Chapter 1 Standard of living is defined as the necessities

Chapter 1—Understanding the Financial Planning Process 1. Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or family. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.1-1 – LO: 1-1 […]

14 Pages | October 7, 2022
Finance Chapter 1 The best way to achieve your financial objectives is to

Finance Chapter 1 The best way to achieve your financial objectives is to

Chapter 1—Understanding the Financial Planning Process ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.1-4 – LO: 1-4 NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking STATE STANDARDS: United States – KS – DISC: Investments KEYWORDS: Bloom’s: Analyzing 103. An […]

9 Pages | October 7, 2022
Finance Chapter 10 After packing up to return home for the holidays after the fall

Finance Chapter 10 After packing up to return home for the holidays after the fall

Chapter 10—Protecting Your Property ANSWER: e POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.10-2 – LO: 10-2 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – AK – DISC: Risk and return United […]

10 Pages | October 7, 2022
Finance Chapter 10 property damage liability auto coverage

Finance Chapter 10 property damage liability auto coverage

Chapter 10—Protecting Your Property KEYWORDS: Bloom’s: Applying 74. Your standard HO policy will not include coverage for damage done by a. flood. b. windstorm. c. falling objects. d. fire. e. theft. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.10-2 […]

10 Pages | October 7, 2022
Finance Chapter 10 Replacement Cost Coverage Available For Renters But

Finance Chapter 10 Replacement Cost Coverage Available For Renters But

Chapter 10—Protecting Your Property 1. Property insurance is meant to protect property owners from two basic types of exposures, physical loss of property and loss through depreciation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: PFIN.BILL.17.10-1 […]

14 Pages | October 7, 2022
Finance Chapter 11 An investment offering a stable current income would likely

Finance Chapter 11 An investment offering a stable current income would likely

Chapter 11—Investment Planning DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.11-1 – LO: 11-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – KS – DISC: Investments United States – AK – DISC: Investments KEYWORDS: […]

9 Pages | October 7, 2022
Finance Chapter 11 Investing is considered a short-term activity that involves 

Finance Chapter 11 Investing is considered a short-term activity that involves 

Chapter 11—Investment Planning 1. Investing is considered a short-term activity that involves the buying and selling of securities. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.11-1 – LO: 11-1 NATIONAL STANDARDS: United States – BUSPROG: […]

14 Pages | October 7, 2022
Finance Chapter 11 Securities sold in the primary markets are usually handled by

Finance Chapter 11 Securities sold in the primary markets are usually handled by

Chapter 11—Investment Planning 73. Investment vehicles include a. common stock. b. bonds. c. preferred and convertible securities. d. real estate. e. all of these. ANSWER: e POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.11-1 – LO: 11-1 NATIONAL STANDARDS: United States […]

9 Pages | October 7, 2022
Finance Chapter 12 Security Investors Incur Varying Degrees Risk

Finance Chapter 12 Security Investors Incur Varying Degrees Risk

Chapter 12—Investing in Stocks and Bonds 1. Market risk considers the possibility that the firm may fail. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.12-1 – LO: 12-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic […]

14 Pages | October 7, 2022
Finance Chapter 12 The current market price of the common stock is $50/share

Finance Chapter 12 The current market price of the common stock is $50/share

Chapter 12—Investing in Stocks and Bonds Cengage Learning Testing, Powered by Cognero Page 38 125. Sunshine Mining Bonds have a $1,000 face value, pay $95 annual interest, and are currently quoted at $1,302.50. The coupon rate of interest is a. […]

10 Pages | October 7, 2022
Finance Chapter 12 A high inflation rate would result in a high degree

Finance Chapter 12 A high inflation rate would result in a high degree

Chapter 12—Investing in Stocks and Bonds e. security price fluctuations. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.12-1 – LO: 12-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – AK […]

11 Pages | October 7, 2022
Finance Chapter 13 Closed-ended mutual funds are guaranteed, they cannot lose

Finance Chapter 13 Closed-ended mutual funds are guaranteed, they cannot lose

Chapter 13—Investing in Mutual Funds 1. Closed-ended mutual funds are guaranteed, they cannot lose value. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.13-2 – LO: 13-2 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – […]

14 Pages | October 7, 2022
Finance Chapter 13 Financial leverage is less of a factor in real estate investment

Finance Chapter 13 Financial leverage is less of a factor in real estate investment

Chapter 13—Investing in Mutual Funds LEARNING OBJECTIVES: PFIN.BILL.17.13-6 – LO: 13-6 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – KS – DISC: Investments KEYWORDS: Bloom’s: Remembering 76. Financial leverage is less […]

9 Pages | October 7, 2022
Finance Chapter 13 If you are a mutual fund investor who needs steady income

Finance Chapter 13 If you are a mutual fund investor who needs steady income

Chapter 13—Investing in Mutual Funds ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.13-3 – LO: 13-3 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – AK – DISC: Derivatives United States […]

9 Pages | October 7, 2022
Finance Chapter 14 Annuities may provide survivor’s benefits

Finance Chapter 14 Annuities may provide survivor’s benefits

Chapter 14—Planning for Retirement KEYWORDS: Bloom’s: Understanding 75. Annuities may provide survivor’s benefits. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.14-6 – LO: 14-6 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical […]

14 Pages | October 7, 2022
Finance Chapter 14 Most people are too conservative when investing their retirement

Finance Chapter 14 Most people are too conservative when investing their retirement

Chapter 14—Planning for Retirement 1. Most people are too conservative when investing their retirement funds. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.14-1 – LO: 14-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – […]

14 Pages | October 7, 2022
Finance Chapter 14 With a graduated vesting schedule over five years

Finance Chapter 14 With a graduated vesting schedule over five years

Chapter 14—Planning for Retirement a. $5,000 b. $4,250 c. $2,500 d. $ 750 e. $ 0 ANSWER: d POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: PFIN.BILL.17.14-4 – LO: 14-4 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills […]

13 Pages | October 7, 2022
Finance Chapter 15 Gift tax liability could be incurred on which of 

Finance Chapter 15 Gift tax liability could be incurred on which of 

Chapter 15—Preserving Your Estate ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.15-4 – LO: 15-4 NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking STATE STANDARDS: United States – AK – DISC: Financial Analysis and Cas – DISC: Financial Analysis […]

10 Pages | October 7, 2022
Finance Chapter 15 Successful estate planning requires knowledge of wills

Finance Chapter 15 Successful estate planning requires knowledge of wills

Chapter 15—Preserving Your Estate 1. The main objective of estate planning is to save attorney’s fees. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.15-1 – LO: 15-1 NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking […]

14 Pages | October 7, 2022
Finance Chapter 15 The Unified Rate Schedule Applies Federal

Finance Chapter 15 The Unified Rate Schedule Applies Federal

Chapter 15—Preserving Your Estate KEYWORDS: Bloom’s: Remembering 71. The adjusted gross estate is calculated by subtracting any allowable marital deduction or charitable deduction from the gross estate. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.15-5 […]

11 Pages | October 7, 2022
Finance Chapter 2 A personal balance sheet shows your financial condition

Finance Chapter 2 A personal balance sheet shows your financial condition

Chapter 2—Using Financial Statements and Budgets 1. A personal balance sheet shows your financial condition as of the time the statement is prepared. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.2-1 – LO: 2-1 NATIONAL […]

14 Pages | October 7, 2022
Finance Chapter 2 Health insurance premiums deducted from monthly pay check

Finance Chapter 2 Health insurance premiums deducted from monthly pay check

Chapter 2—Using Financial Statements and Budgets a. $200,000 asset and $55,000 liability b. $200,000 asset and $90,000 liability c. $175,000 asset and $55,000 liability d. $175,000 asset and $90,000 liability e. $100,000 asset and $55,000 liability ANSWER: c POINTS: 1 […]

12 Pages | October 7, 2022
Finance Chapter 2 Your investment advisor wants you to purchase an annuity 

Finance Chapter 2 Your investment advisor wants you to purchase an annuity 

Chapter 2—Using Financial Statements and Budgets 113. Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for […]

11 Pages | October 7, 2022
Finance Chapter 3 If you itemize deductions and your income is over $100,000

Finance Chapter 3 If you itemize deductions and your income is over $100,000

Chapter 3—Preparing Your Taxes d. Tax attorneys e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.3-5 – LO: 3-5 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States […]

12 Pages | October 7, 2022
Finance Chapter 3 The federal personal income tax is a progressive tax

Finance Chapter 3 The federal personal income tax is a progressive tax

Chapter 3—Preparing Your Taxes 1. The federal personal income tax is a progressive tax. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.3-1 – LO: 3-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: […]

14 Pages | October 7, 2022
Finance Chapter 3 Which The Following Offer Tax Preparation

Finance Chapter 3 Which The Following Offer Tax Preparation

Chapter 3—Preparing Your Taxes DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.3-5 – LO: 3-5 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis […]

12 Pages | October 7, 2022
Finance Chapter 4 Factors typically influencing the choice of where to maintain

Finance Chapter 4 Factors typically influencing the choice of where to maintain

Chapter 4—Managing Your Cash and Savings a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: PFIN.BILL.17.4-1 – LO: 4-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – KS […]

12 Pages | October 7, 2022
Finance Chapter 4 One could expect to earn a higher rate of interest on a

Finance Chapter 4 One could expect to earn a higher rate of interest on a

Chapter 4—Managing Your Cash and Savings 1. One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.4-1 […]

14 Pages | October 7, 2022
Finance Chapter 4 You have $450 in your checking account when your EFTS card

Finance Chapter 4 You have $450 in your checking account when your EFTS card

Chapter 4—Managing Your Cash and Savings POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.4-4 – LO: 4-4 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – AK – DISC: Banking and Interest United […]

11 Pages | October 7, 2022
Finance Chapter 5 An increase in the “rent ratio” indicates that renting

Finance Chapter 5 An increase in the “rent ratio” indicates that renting

Chapter 5—Making Automobile and Housing Decisions Cengage Learning Testing, Powered by Cognero Page 21 70. An increase in the “rent ratio” indicates that renting is more affordable relative to housing prices. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: […]

14 Pages | October 7, 2022
Finance Chapter 5 The greatest fixed cost involved with owning an automobile

Finance Chapter 5 The greatest fixed cost involved with owning an automobile

Chapter 5—Making Automobile and Housing Decisions 1. The greatest fixed cost involved with owning an automobile is usually the monthly loan payments. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.5-1 – LO: 5-1 NATIONAL STANDARDS: […]

14 Pages | October 7, 2022
Finance Chapter 5 The interest rates and monthly mortgage payments

Finance Chapter 5 The interest rates and monthly mortgage payments

Chapter 5—Making Automobile and Housing Decisions POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.5-3 – LO: 5-3 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – KS – DISC: Capital Budgeting and Cost […]

13 Pages | October 7, 2022
Finance Chapter 6 Borderline credit risks would most likely receive

Finance Chapter 6 Borderline credit risks would most likely receive

Chapter 6—Using Credit DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.6-4 – LO: 6-4 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – AK – DISC: Capital budgeting and cost – DISC: Capital budgeting and […]

10 Pages | October 7, 2022
Finance Chapter 6 His Most Recent Monthly Statement Lists Last

Finance Chapter 6 His Most Recent Monthly Statement Lists Last

Chapter 6—Using Credit a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.6-4 – LO: 6-4 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – AK – DISC: Capital […]

10 Pages | October 7, 2022
Finance Chapter 6 Paying only the minimum payment each time on a credit card

Finance Chapter 6 Paying only the minimum payment each time on a credit card

Chapter 6—Using Credit 1. Using credit is the ideal way to provide for financial emergencies. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.6-1 – LO: 6-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic skills – […]

14 Pages | October 7, 2022
Finance Chapter 7 Consumer Loan Probably Would Not Used

Finance Chapter 7 Consumer Loan Probably Would Not Used

Chapter 7—Using Consumer Loans 1. Even if you do have money, you may still be better off using an installment loan for a big-ticket purchase. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.7-5 – LO: […]

14 Pages | October 7, 2022
Finance Chapter 7 Consumers whose debt burden has become very heavy

Finance Chapter 7 Consumers whose debt burden has become very heavy

Chapter 7—Using Consumer Loans 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 States – BUSPROG: Analytic skills – BUSPROG: Analytical skills STATE STANDARDS: United States – KS – DISC: […]

9 Pages | October 7, 2022
Finance Chapter 7 Which type of educational loan most likely carries the highest

Finance Chapter 7 Which type of educational loan most likely carries the highest

Chapter 7—Using Consumer Loans 106. Which type of educational loan most likely carries the highest interest charges? a. Stafford loan b. Perkins loan c. PLUS loan d. 529 Plan ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.7-2 – LO: […]

9 Pages | October 7, 2022
Finance Chapter 8 The basic assumptions that the company uses to 

Finance Chapter 8 The basic assumptions that the company uses to 

Chapter 8—Insuring Your Life e. biennial ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.8-6 – LO: 8-6 NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking STATE STANDARDS: United States – AK – DISC: Risk and return United States – […]

9 Pages | October 7, 2022
Finance Chapter 8 The basic purpose of insurance is to protect you from the financial

Finance Chapter 8 The basic purpose of insurance is to protect you from the financial

Chapter 8—Insuring Your Life 1. The basic purpose of insurance is to protect you from the financial consequences of losing assets or income due to accident, illness, or death. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING […]

14 Pages | October 7, 2022
Finance Chapter 8 With Most Insurers Paying Life Insurance

Finance Chapter 8 With Most Insurers Paying Life Insurance

Chapter 8—Insuring Your Life b. loss prevention. c. risk assumption. d. risk retention. e. insurance. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: PFIN.BILL.17.8-1 – LO: 8-1 NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking STATE STANDARDS: United States – […]

9 Pages | October 7, 2022
Finance Chapter 9 About 13% of Americans are not covered by health insurance

Finance Chapter 9 About 13% of Americans are not covered by health insurance

Chapter 9—Insuring Your Health 1. About 13% of Americans are not covered by health insurance. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: PFIN.BILL.17.9-1 – LO: 9-1 NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking STATE […]

14 Pages | October 7, 2022
Finance Chapter 9 One complaint about HMOs in the past, as compared

Finance Chapter 9 One complaint about HMOs in the past, as compared

Chapter 9—Insuring Your Health NATIONAL STANDARDS: United States – BUSPROG: Reflective Thinking STATE STANDARDS: United States – KS – DISC: Risk and Return KEYWORDS: Bloom’s: Remembering 106. The United States spends about ___ the average of other rich economies on […]

9 Pages | October 7, 2022
Finance Chapter 9 The Castles Net Worth is Approximately 190000 They

Finance Chapter 9 The Castles Net Worth is Approximately 190000 They

Chapter 9—Insuring Your Health a. actual surgical expense. b. listed benefit schedules. c. specific percentage of actual surgical expense. d. average national cost of the surgery. e. usual, reasonable, and customary expenses. ANSWER: e POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: […]

9 Pages | October 7, 2022