Personal Finance Jeff Madura Test Bank - 7th Edition

Overview

Description

For courses in personal finance.

A hands-on approach to financial planning

The main feature of Personal Finance is its hands-on approach keyed to the concepts students need to build their own financial plans. The text’s seven parts are all pieces of a financial plan; Chapter 21 is the capstone. A running example throughout the book and a variety of end-of-chapter cases reinforce the practical aspects of planning. The 7th Edition is fully updated with recent financial trends, such as lower interest rates, changing salaries, and rules for credit card use. With case studies and workable examples throughout, this book is an active tool students can use to become comfortable managing their finances into the future. 


 Table of Contents

1. Overview of a Financial Plan

PART 1: TOOLS FOR FINANCIAL PLANNING

2. Planning with Personal Financial Statements

3. Applying Time Value Concepts

4. Using Tax Concepts for Planning

PART 2: MANAGING YOUR LIQUIDITY

5. Banking and Interest Rates

6. Managing Your Money

7. Assessing and Securing Your Credit

8. Managing Your Credit

PART 3: PERSONAL FINANCING

9. Personal Loans

10. Purchasing and Financing a Home

PART 4: PROTECTING YOUR WEALTH

11. Auto and Homeowner’s Insurance

12. Health and Disability Insurance

13. Life Insurance

PART 5: PERSONAL INVESTING

14. Investing Fundamentals

15. Investing in Stocks

16. Investing in Bonds

17. Investing in Mutual Funds

18. Asset Allocation

PART 6: RETIREMENT AND ESTATE PLANNING

19. Retirement Planning

20. Estate Planning

PART 7: SYNTHESIS OF FINANCIAL PLANNING

21. Integrating the Components of a Financial Plan


What resources are included in this purchase?


  • Instructor's Resource Manual
  • Test Bank - Word & PDF

Random Sample of the Test Bank

Personal Finance, 7e (Madura)

Chapter 3  Applying Time Value Concepts

 

3.1  The Importance of the Time Value of Money

 

1) The time period over which you save money has very little impact on its growth.

Answer:  FALSE

Diff: 1

Question Status:  Carryover

AACSB:  Reflective Thinking

 

2) The time value of money concept can help you determine how much money you need to save over a period of time to achieve a specific savings goal.

Answer:  TRUE

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 

3) Time value of money calculations, such as present and future value amounts, can be applied to many day-to-day decisions.

Answer:  TRUE

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 

4) Time value of money is only applied to single dollar amounts.

Answer:  FALSE

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 

5) Your utility bill, which varies each month, is an example of an annuity.

Answer:  FALSE

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 

6) In general, a dollar can typically buy more today than it can in one year.

Answer:  TRUE

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 


 

7) An annuity is a stream of equal payments that are received or paid at equal intervals in time.

Answer:  TRUE

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 

8) An annuity is a stream of equal payments such as a mortgage, social security payments or a pension.

Answer:  TRUE

Diff: 2

Question Status:  Major Revision

AACSB:  Application of Knowledge

 

9) Time value of money computations relate to the future value of lump-sum cash flows only.

Answer:  FALSE

Diff: 2

Question Status:  Carryover

AACSB:  Application of Knowledge

 

10) There are two sets of present and future value tables: one set for lump sums and one set for annuities.

Answer:  TRUE

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 

11) Money received today is worth more than the same amount of money received in the future. This is true because

A) money received today can grow at a compounded rate.

B) inflation will devalue future dollars.

C) generally, goods and services will cost more in the future.

D) All of these.

Answer:  D

Diff: 2

Question Status:  Major Revision

AACSB:  Reflective Thinking

 

12) The time value of money refers to

A) personal opportunity costs such as time lost on an activity.

B) financial decisions that require borrowing funds from a bank.

C) changes in interest rates due to changes in the supply and demand for money in the national economy.

D) the difference in the value of money depending on when it is received.

Answer:  D

Diff: 2

Question Status:  Carryover

AACSB:  Application of Knowledge

13) The time value of money implies that a dollar received today is worth ________ a dollar received tomorrow.

A) more than

B) less than

C) the same as

D) Insufficient data to determine the answer.

Answer:  A

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

 

14) The concept of the time value of money is based on

A) the level of unemployment.

B) taxes.

C) interest earned over time.

D) the Dow Jones Industrial Average.

Answer:  C

Diff: 1

Question Status:  Carryover

AACSB:  Application of Knowledge

Personal Finance Jeff Madura Test Bank - 7th Edition

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