Test Bank & Solution manual for
Personal Finance, Fourth
Canadian Edition (4th Edition) by
Jeff Mad
2
© 2019 Pearson Canada Inc.
Personal
... [Show More] Finance, Canadian Ed., 4e (Madura)
Overview of a Financial Plan
True/False
1) Many people who believe they have strong personal finance skills do not really understand
some basic personal finance concepts.
Answer: TRUE
Diff: 1 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Recall
2) The per capita debt of Canadians has multiplied by more than five times since 1981.
Answer: FALSE
Diff: 1 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Recall
3) A good example of a personal financial goal would be planning to purchase a home one day.
Answer: FALSE
Diff: 2 Type: TF
Categories: Developing a Financial Plan
Financial Type: Qualitative
Skill Type: Applied
4) The Financial Planning Standards Council (FPSC)sets out the steps needed to earn the
Certified Financial Planner (CFP) designation.
Answer: TRUE
Diff: 2 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Recall
5) A car accident which is not fully covered by your insurance is an example of an unexpected
expense you cannot plan for.
Answer: FALSE
Diff: 2 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Applied
3
© 2019 Pearson Canada Inc.
6) An understanding of personal finance is necessary to judge the quality of advice that a
financial adviser may give.
Answer: TRUE
Diff: 1 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Recall
7) The Financial Planning Standards Council (FPSC) is a profit-oriented organization created to
benefit the public with regards to financial planning.
Answer: FALSE
Diff: 1 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Recall
8) Saving money for the downpayment on a house instead of saving for retirement is an example
of an opportunity cost.
Answer: TRUE
Diff: 2 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Applied
9) Financial advisers are in demand because most people lack understanding or are not interested
in making their own financial decisions.
Answer: TRUE
Diff: 2 Type: TF
Categories: Developing a Financial Plan
Financial Type: Qualitative
Skill Type: Recall
10) Generally, savings in an emergency fund will tend to earn higher interest than savings in a
retirement plan.
Answer: FALSE
Diff: 2 Type: TF
Categories: Benefit From Understanding Personal Finance
Financial Type: Qualitative
Skill Type: Recall
11) A complete financial plan consists of budgeting, tax planning, financing, and investing.
Answer: FALSE
Diff: 2 Type: TF
Categories: Components of a Financial Plan [Show Less]