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Test Bank For Personal Finance ,10th Edition by Jack Kapoor Money Management Strategy: Financial Statements and Budgeting.

Chapter 1 Personal Financial Planning: An Introduction
True/False Questions
T F 1. Financial planning has specific techniques that will be effective for every individual and
household.
Answer: False Difficulty: Med LO: 1 Page: 4
T F 2. Opportunity costs refer to what a person gives up when making a decision.
Answer: True Difficulty: Med LO: 1 Page: 6
T F 3. Most decisions have only a few alternatives from which to choose.
Answer: False Difficulty: Easy LO: 1 Page: 6
T F 4. Risks associated with most financial decisions are fairly easy to measure.
Answer: False Difficulty: Med LO: 1 Page: 7
T F 5. Developing financial goals is the first step in the financial planning process.
Answer: False Difficulty: Med LO: 1 Page: 5
T F 6. Analyzing your current financial position is a part of the first stage of the financial
planning process.
Answer: True Difficulty: Easy LO: 1 Page: 4
T F 7. The financial planning process is complete once you implement your financial plan.
Answer: False Difficulty: Med LO: 1 Page: 8
T F 8. Short-term goals are usually achieved within the next year or so.
Answer: True Difficulty: Easy LO: 2 Page: 9
T F 9. Planning to buy a house is an example of an intangible goal.
Answer: False Difficulty: Med LO: 2 Page: 10
T F 10. Household size is a major influence on personal financial planning decisions.
Answer: True Difficulty: Easy LO: 3 Page: 13
T F 11. Increased demand for a product or service will usually result in lower prices for the item.
Answer: False Difficulty: Med LO: 3 Page: 14
T F 12. Inflation reduces the buying power of money.
Answer: True Difficulty: Easy LO: 3 Page: 14
T F 13. Lenders benefit more than borrowers in times of high inflation.
Answer: False Difficulty: Hard LO: 3 Page: 14
T F 14. Economics is the study of using money to achieve financial goals.
Answer: False Difficulty: Med LO: 3 Page: 13
T F 15. When prices are increasing at a rate of 6 percent, the cost of products would double in
about 12 years.
Answer: True Difficulty: Hard LO: 3 Page: 15
T F 16. A decrease in the demand for a product or service may result in a decrease in wages for
people producing that item.
Answer: True Difficulty: Med LO: 3 Page: 16
T F 17. Higher inflation usually results in lower interest rates.
Answer: False Difficulty: Med LO: 3 Page: 17
T F 18. Opportunity costs refer to time, money, and other resources that are given up when a
decision is made.
Answer: True Difficulty: Med LO: 4 Page: 17
T F 19. Time value of money refers to changes in consumer spending when inflation occurs.
Answer: False Difficulty: Med LO: 4 Page: 18
T F 20. Interest on savings is calculated by multiplying the money amount times the opportunity
cost times the annual interest rate.
Answer: False Difficulty: Hard LO: 4 Page: 18
T F 21. Present value is also referred to as compounding.
Answer: False Difficulty: Med LO: 4 Page: 19
T F 22. Liquidity is the ability to convert financial resources into usable cash with ease.
Answer: True Difficulty: Easy LO: 5 Page: 22
T F 23. Developing and using a budget is part of the “obtaining” component of financial
planning.
Answer: False Difficulty: Easy LO: 5 Page: 22
T F 24. A financial plan is another name for a budget.
Answer: False Difficulty: Med LO: 5 Page: 24
Multiple Choice Questions
25. Personal financial planning has the main goal of
A) savings and investing for future needs.
B) reducing a person’s tax liability.
C) putting money to work and living within your means.
D) spending to achieve financial objectives.
E) savings, spending, and borrowing based on current needs.
Answer: C Difficulty: Med LO: 1 Page: 4
26. The first step of the financial planning process is to
A) develop financial goals.
B) implement the financial plan.
C) analyze your current personal and financial situation.
D) evaluate and revise your actions.
E) create a financial plan of action.
Answer: C Difficulty: Easy LO: 1 Page: 4
27. Opportunity cost refers to
A) money needed for major consumer purchases.
B) the trade-off of a decision.
C) the amount paid for taxes when a purchase is made.
D) current interest rates.
E) evaluating different alternatives for financial decisions.
Answer: B Difficulty: Med LO: 1 Page: 6
28. ____________ risk refers to the danger of lost buying power during times of rising prices.
A) Trade-off
B) Economic
C) Personal
D) Inflation
E) Interest-rate
Answer: D Difficulty: Med LO: 1 Page: 7
29. Which of the following is an example of opportunity cost?
A) renting an apartment near school
B) saving money instead of taking a vacation
C) setting aside money for paying income tax
D) purchasing automobile insurance
E) using a personal computer for financial planning
Answer: B Difficulty: Med LO: 1 Page: 6
30. The changing cost of money is referred to as ____________ risk.
A) interest-rate
B) inflation
C) economic
D) trade-off
E) personal
Answer: A Difficulty: Med LO: 1 Page: 7
31. The uncertainty associated with decision making is referred to as
A) opportunity cost.
B) selection of alternatives.
C) financial goals.
D) personal values.
E) risk.
Answer: E Difficulty: Easy LO: 1 Page: 7
32. The financial planning process concludes with efforts to
A) develop financial goals.
B) create a financial plan of action.
C) analyze your current personal and financial situation.
D) review the financial plan.
E) review and revise your actions.
Answer: E Difficulty: Easy LO: 1 Page: 8
33. Using the services of financial institutions will be most evident in your effort to
A) develop financial goals.
B) evaluate and revise your actions.
C) analyze your current personal and financial situation.
D) implement the financial plan.
E) create a financial plan of action.
Answer: D Difficulty: Hard LO: 1 Page: 8
34. Changes in income, values, and family situation make it necessary to
A) evaluate and revise your actions.
B) implement the financial plan.
C) develop financial goals.
D) analyze your current personal and financial situation.
E) create a financial plan of action.
Answer: A Difficulty: Easy LO: 1 Page: 8-9
35. As Jean Tyler plans to set aside funds for her young children’s college education, she is setting
a(n) ____________ goal.
A) intermediate
B) long-term
C) short-term
D) intangible
E) durable
Answer: B Difficulty: Easy LO: 2 Page: 9
36. ____________ goals relate to personal relationships, health, and education.
A) Durable-product
B) Short-term
C) Consumable-product
D) Intangible-purchase
E) Intermediate
Answer: D Difficulty: Med LO: 2 Page: 10
37. Brad Opper has a goal of “saving $50 a month for vacation.” Brad’s goal lacks
A) measurable terms.
B) a realistic perspective.
C) specific actions.
D) a tangible end.
E) a time frame.
Answer: E Difficulty: Med LO: 2 Page: 12
38. Which of the following goals would be the easiest to implement and measure its
accomplishment?
A) “Reduce our debt payments.”
B) “Save funds for an annual vacation.”
C) “Save $100 a month to create a $4,000 emergency fund.”
D) “Invest $2,000 a year for retirement.”
Answer: C Difficulty: Med LO: 2 Page: 12
39. Higher prices are likely to result from
A) lower demand by consumers.
B) increased production by business.
C) lower interest rates.
D) increased spending by consumers.
E) an increase in the supply of a product.
Answer: D Difficulty: Med LO: 3 Page: 14
40. Who is most likely to benefit by inflation?
A) retired people
B) lenders
C) borrowers
D) low-income consumers
E) government
Answer: C Difficulty: Med LO: 3 Page: 14
41. Higher consumer prices are likely to be accompanied by
A) lower union wages.
B) lower interest rates.
C) lower production costs.
D) higher interest rates.
E) higher exports.
Answer: D Difficulty: Hard LO: 3 Page: 17
42. With an inflation rate of 9 percent, prices would double in about ___________ years.
A) 4
B) 6
C) 8
D) 10
E) 12
Answer: C Difficulty: Med LO: 3 Page: 15
43. Increased consumer spending will usually cause
A) lower consumer prices.
B) reduced employment levels.
C) lower tax revenues.
D) lower interest rates.
E) higher employment levels.
Answer: E Difficulty: Med LO: 3 Page: 15-16
44. Higher interest rates can be caused by
A) a lower money supply.
B) an increase in the money supply.
C) a decrease in consumer borrowing.
D) lower government spending.
E) increased saving and investing by consumers.
Answer: A Difficulty: Hard LO: 3 Page: 17
45. A risk premium associated with interest rates refers to
A) expanded exports.
B) lower consumer prices.
C) higher earnings due to uncertainty.
D) a loan with a short maturity.
E) expected lower inflation.
Answer: C Difficulty: Hard LO: 3 Page: 17
46. Which of the following would increase the risk of a loan?
A) higher consumer prices
B) a short time to maturity
C) lower consumer prices
D) constant interest rates
E) a good credit rating
Answer: A Difficulty: Hard LO: 3 Page: 17
47. The stages that an individual goes through based on age, financial needs, and family situation is
called the
A) financial planning process.
B) budgeting procedure.
C) personal economic cycle.
D) adult life cycle.
E) tax planning process.
Answer: D Difficulty: Easy LO: 3 Page: 13
48. The study of how wealth is created and distributed is
A) financial planning.
B) opportunity cost.
C) inflation.
D) economics.
E) a market economy.
Answer: D Difficulty: Easy LO: 3 Page: 13
49. The main economic influence that determines prices is
A) the stock market.
B) interest rates.
C) employment.
D) government spending.
E) supply and demand.
Answer: E Difficulty: Med LO: 3 Page: 14
50. The Fed refers to
A) government regulation of business.
B) Congress.
C) the Federal Reserve System.
D) the Federal Deposit Insurance Corporation.
E) spending by the federal government.
Answer: C Difficulty: Med LO: 3 Page: 13
51. The main responsibility of The Fed is to
A) regulate the money supply.
B) approve spending by Congress.
C) set federal income tax rates.
D) determine illegal business activities.
E) maintain a balanced budget for the federal government.
Answer: A Difficulty: Med LO: 3 Page: 13
52. Reduced funds available for investment in our economy could result from
A) expanded savings by consumers.
B) higher exports than imports.
C) reduced spending for consumer goods.
D) higher imports than exports.
Answer: D Difficulty: Hard LO: 3 Page: 14
53. Which of the following would cause prices to drop?
A) increased taxes on business
B) higher levels of demand by consumers
C) a demand for higher wages
D) a reduction in the money supply
E) increased production by business
Answer: E Difficulty: Hard LO: 3 Page: 14
54. An example of a personal opportunity cost would be
A) interest lost by using savings to make a purchase.
B) higher earnings on savings that must be kept on deposit a minimum of six months.
C) lost wages due to continuing as a full-time student.
D) time comparing several brands of personal computers.
E) having to pay a tax penalty due to not having enough withheld from your monthly salary.
Answer: D Difficulty: Med LO: 4 Page: 17-18
55. 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 financial institution.
C) changes in interest rates due to changes in the supply and demand for money in our
economy.
D) increases in an amount of money as a result of interest.
E) changing demographic trends in our society.
Answer: D Difficulty: Med LO: 4 Page: 18
56. The amount of interest is determined by multiplying the amount in savings by the
A) annual interest rate.
B) time period.
C) number of months in a year.
D) time period and number of months.
E) annual interest rate and the time period.
Answer: E Difficulty: Med LO: 4 Page: 18
57. If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of
computation?
A) simple interest
B) future value of a single amount
C) future value of a series of deposits
D) present value of a single amount
E) present value of a series of deposits
Answer: C Difficulty: Hard LO: 4 Page: 19
58. Which type of computation would a person use to determine current value of a desired amount
for the future?
A) simple interest
B) future value of a single amount
C) future value of a series of deposits
D) present value of a single amount
E) present value of a series of deposits
Answer: D Difficulty: Med LO: 4 Page: 19
59. Future value calculations are also referred to as
A) discounting.
B) add-on interest.
C) compounding.
D) simple interest.
E) an annuity.
Answer: C Difficulty: Med LO: 4 Page: 19
60. If you put $1,000 in a saving account and make no further deposits, what type of calculation
would provide you with the value of the account in 20 years?
A) future value of a single amount
B) simple interest
C) present value of a single amount
D) present value of a series of deposits
E) future value of a series of deposits
Answer: A Difficulty: Med LO: 4 Page: 19
61. Attempts to increase income are part of the ____________ component of financial planning.
A) planning
B) obtaining
C) saving
D) sharing
E) protecting
Answer: B Difficulty: Easy LO: 5 Page: 22
62. A major activity in the planning component of financial planning is
A) selecting insurance coverage.
B) evaluating investment alternatives.
C) gaining occupational training and experience.
D) allocating current resources for spending.
E) establishing a line of credit.
Answer: D Difficulty: Med LO: 5 Page: 22
63. Liquidity refers to
A) the earnings on savings.
B) the risk of an investment.
C) the ease of converting a financial resource into cash.
D) the amount of insurance coverage a person has.
E) a person’s inability to pay his or her debts.
Answer: C Difficulty: Med LO: 5 Page: 22
64. The ability to convert financial resources into usable cash with ease is referred to as
A) bankruptcy.
B) liquidity.
C) investing.
D) saving.
E) opportunity cost.
Answer: B Difficulty: Easy LO: 5 Page: 22
65. The problem of bankruptcy is associated with poor decisions in the ______________ component
of financial planning.
A) sharing
B) saving
C) obtaining
D) borrowing
E) protecting
Answer: D Difficulty: Easy LO: 5 Page: 23
66. A question associated with the saving component of financial planning is:
A) Do you have an adequate emergency fund?
B) Is your will current?
C) Is your investment program appropriate to your income and tax situation?
D) Do you have a realistic budget for your current financial situation?
E) Are your transportation expenses minimized through careful planning?
Answer: A Difficulty: Easy LO: 5 Page: 22
67. A formalized report that summarizes your current financial situation, analyzes your financial
needs, and recommends a direction for your financial activities is a(n)
A) insurance prospectus.
B) financial plan.
C) budget.
D) investment forecast.
E) statement.
Answer: B Difficulty: Med LO: 5 Page: 24
68. The major function of a financial plan is to
A) reduce taxes.
B) increase savings.
C) achieve financial goals.
D) improve your credit rating.
E) obtain adequate insurance protection.
Answer: C Difficulty: Easy LO: 5 Page: 24
69. The success of a financial plan will be determined by
A) the amount of income available.
B) the stage of the adult life cycle.
C) a person’s tax status.
D) how resources are used.
E) current economic conditions.
Answer: D Difficulty: Med LO: 5 Page: 24
70. Which of the following is usually considered a long-term financial strategy?
A) creating a budget
B) using savings to pay off a loan early
C) renting an apartment to save for the purchase of a home
D) investing in a growth mutual fund to accumulate retirement funds
E) purchasing auto insurance to cover the needs of dependents
Answer: D Difficulty: Med LO: 5 Page: 24
Essay Questions
71. What types of risks are commonly associated with personal financial decisions?
How can these risks be evaluated and minimized to reduce personal and financial difficulties?
Difficulty: Med LO: 1 Page: 7
Answer:
Common risks are inflation risk, interest rates risk, personal risk, and liquidity risk. Risks can be
evaluated and minimized by obtaining information, comparing alternatives before making a
decision, and obtaining insurance.
72. People are commonly overwhelmed by the many influences on personal financial decisions.
What are the factors affecting financial planning?
Difficulty: Med LO: 3 Page: 13-17
Answer:
Students answers will vary. Factors might include personal values, household situation, age,
income level, employment situation, and economic conditions.
73. What are the main components of personal financial planning?
Difficulty: Med LO: 5 Page: 21-24
Answer:
The main components of personal financial planning are obtaining, planning, saving, borrowing,
spending, managing risk, investing, and retirement and estate planning.
74. Hope Appleton is trying to decide whether to keep her money in a savings account or in a
mutual fund. What would you tell her to help her analyze her decision?
Difficulty: Med LO: 5 Page: 4-21
Answer:
Students answers will vary. Suggested responses might mention gathering information,
comparing alternatives, analyzing risks, assessing personal goals, and contacting financial
planning experts.
Chapter 2 Financial Aspects of Career Planning
True/False Questions
T F 1. A job tends to have less of a long-term commitment to a field than a career.
Answer: True Difficulty: Easy LO: 1 Page: 38
T F 2. Very little evidence exists that a person’s choice of employment influences his or her
lifestyle.
Answer: False Difficulty: Med LO: 1 Page: 38
T F 3. A possible opportunity cost associated with career advancement is a need to relocate
your household.
Answer: True Difficulty: Med LO: 1 Page: 38
T F 4. An interest inventory measures a person’s aptitudes.
Answer: False Difficulty: Med LO: 2 Page: 39
T F 5. Certain careers increase and decrease in demand based on changes in interest rates.
Answer: True Difficulty: Easy LO: 2 Page: 43
T F 6. In recent years, the demand for manufacturing jobs in the United States has increased
due to reduced foreign competition.
Answer: False Difficulty: Easy LO: 2 Page: 43
T F 7. Increased technology can result in a reduction of employment in one industry while
creating new jobs in other industries.
Answer: True Difficulty: Med LO: 2 Page: 43
T F 8. Changes in family size and marriage rates have not affected the types of jobs that are in
demand.
Answer: False Difficulty: Easy LO: 2 Page: 41-42
T F 9. Libraries usually have a variety of information sources for career planning and job
exploration.
Answer: True Difficulty: Easy LO: 3 Page: 45
T F 10. Current business and economic news can be an indication of the jobs in demand for the
future.
Answer: True Difficulty: Med LO: 3 Page: 45
T F 11. Professional associations will usually screen candidates for jobs available in a certain
career area.
Answer: False Difficulty: Hard LO: 3 Page: 46
T F 12. The purpose of an informational interview is to obtain employment from a branch office
of a major corporation.
Answer: False Difficulty: Med LO: 3 Page: 46
T F 13. Government supported employment services can assist individuals with finding a job.
Answer: True Difficulty: Med LO: 3 Page: 48
T F 14. Corporate culture refers to the methods used by an organization to determine the value
of employee benefits.
Answer: False Difficulty: Med LO: 4 Page: 49
T F 15. Education, training, and the demands for a person’s skills are major influences on salary.
Answer: True Difficulty: Easy LO: 4 Page: 49
T F 16. A cafeteria-style employee benefits program allows a person to select the items that are
most needed.
Answer: True Difficulty: Med LO: 4 Page: 50
T F 17. A tax-exempt employee benefit is usually more advantageous than a tax-deferred
benefit.
Answer: True Difficulty: Hard LO: 4 Page: 51
T F 18. Continuing career education can be in a formal or an informal setting.
Answer: True Difficulty: Easy LO: 5 Page: 53
T F 19. A mentor refers to the person who is assigned to orient a new person to an organization.
Answer: False Difficulty: Med LO: 5 Page: 53
T F 20. A person’s birth date, sex, height, and weight may be included on a résumé‚ if that
information relates specifically to qualifications for an employment position.
Answer: True Difficulty: Med LO: Append. Page: 60
T F 21. A list of grades received in school are commonly included on a résumé.
Answer: False Difficulty: Med LO: Append. Page: 60
T F 22. References are commonly not included on a résumé.
Answer: True Difficulty: Easy LO: Append. Page: 61
T F 23. Functional résumés emphasize a person’s skills and abilities in categories such as
communications, research, and human relations.
Answer: True Difficulty: Med LO: Append. Page: 61
T F 24. The purpose of a cover letter is to determine if a company has jobs available.
Answer: False Difficulty: Med LO: Append. Page: 64
T F 25. A screening interview is reserved for only the finalists in a job search.
Answer: False Difficulty: Med LO: Append. Page: 67
Multiple Choice Questions
26. Compared to a job, a career
A) is more financially rewarding.
B) requires minimum training.
C) demands regular updating of knowledge.
D) has limited opportunities for advancement.
Answer: C Difficulty: Med LO: 1 Page: 38
27. A(n) ____________ is an employment position that is obtained mainly to earn money.
A) career
B) job
C) internship
D) apprenticeship
E) cooperative experience
Answer: B Difficulty: Easy LO: 1 Page: 38
28. A commitment to a profession that requires continued training and offers a clear path for
occupational growth is a(n)
A) apprenticeship.
B) job.
C) internship.
D) career.
E) cooperative employment experience.
Answer: D Difficulty: Easy LO: 1 Page: 38
29. The first step of the career planning process is to
A) evaluate the job market.
B) identify potential job opportunities.
C) develop a résumé and cover letter.
D) plan for career growth.
E) assess your interests, abilities, and goals.
Answer: E Difficulty: Easy LO: 1 Page: 40-41
30. The final step of the career planning process is to
A) plan for career development.
B) evaluate the job market.
C) research specific career areas.
D) identify potential job opportunities.
E) evaluate job offers.
Answer: A Difficulty: Easy LO: 1 Page: 40-41
31. In the career planning process, after identifying specific job opportunities, a person should
A) assess interests, abilities, and goals.
B) develop a résumé and cover letter.
C) evaluate job offers.
D) plan for career growth.
E) evaluate the job market.
Answer: B Difficulty: Med LO: 1 Page: 40-41
32. A lack of willingness to accept a variety of employment positions is a common career planning
mistake associated with weak
A) common sense.
B) communication.
C) training.
D) flexibility
E) perseverance.
Answer: D Difficulty: Easy LO: 1 Page: 39
33. Perseverance in a job search refers to
A) obtaining necessary training.
B) flexibility in willingness to accept a position.
C) persistence in the process of obtaining employment.
D) strong communication skills.
E) researching a career field.
Answer: C Difficulty: Easy LO: 1 Page: 39
34. Natural abilities that people possess are
A) interests.
B) aptitudes.
C) attitudes.
D) survival skills.
E) occupation techniques.
Answer: B Difficulty: Med LO: 1 Page: 39
35. The abilities to work well with numbers, possess problem-solving skills, and have physical
dexterity are examples of
A) interests.
B) survival skills.
C) aptitudes.
D) occupational attitudes.
E) on-the-job training.
Answer: C Difficulty: Med LO: 1 Page: 39
36. Which of the following trends is most likely to increase career opportunities in manufacturing
organizations?
A) higher interest rates
B) reduced consumer spending
C) higher consumer prices
D) increased imports
E) increased exports
Answer: E Difficulty: Med LO: 2 Page: 43
37. Change in retail sales is an example of a(n) ____________ influence on the job market.
A) economic
B) social
C) competitive
D) technological
E) industrial
Answer: A Difficulty: Med LO: 2 Page: 43
38. Which of the following is an example of an industrial trend that could affect the job market?
A) increased use of computers in manufacturing
B) fewer children being born
C) higher interest rates
D) lower inflation rates affecting spending
E) more families with both parents working
Answer: A Difficulty: Med LO: 2 Page: 43
39. Bill Evans is concerned about the effect of current economic conditions on various career fields.
Which of the following sources would be most useful for this type of information?
A) the Occupational Outlook Handbook
B) The Wall Street Journal
C) a campus placement office
D) the Chamber of Commerce
E) a professional association
Answer: B Difficulty: Med LO: 3 Page: 45
40. The Occupational Outlook Handbook would be most useful to determine
A) jobs available in your community.
B) current economic conditions.
C) expected employment in various career fields.
D) interview questions for various careers.
E) suggested résumé formats for various career fields.
Answer: C Difficulty: Med LO: 3 Page: 45
41. An example of a professional association that can assist in career planning for a specific career
area is the
A) Bureau of Labor Statistics.
B) Chamber of Commerce.
C) Rotary Club.
D) American Marketing Association.
E) U.S. Department of Labor.
Answer: D Difficulty: Med LO: 3 Page: 46
42. The purpose of an informational interview is to
A) obtain employment.
B) reduce the number of potential candidates.
C) ask job candidates some general questions.
D) practice interview skills.
E) gather information for career planning.
Answer: E Difficulty: Med LO: 3 Page: 46
43. Kenton Greer wants to locate employment positions available in his area. This information would
be best obtained from
A) the Occupational Outlook Handbook.
B) professional contacts.
C) an informational interview.
D) the Bureau of Labor Statistics.
E) business and economic news reports.
Answer: B Difficulty: Med LO: 3 Page: 46
44. To assess the current value of a lump-sum retirement benefit that will be received in 10 years,
use the ____________ calculation.
A) present value of annuity
B) present value of a single amount
C) future value of an annuity
D) future value of a single amount
Answer: B Difficulty: Med LO: 4 Page: 51
45. Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of
$500 would have a tax-equivalent value of
A) $694.
B) $528.
C) $500.
D) $360.
E) $140.
Answer: A Difficulty: Hard LO: 4 Page: 52
46. Tax-deferred employee benefits are
A) not subject to federal income tax.
B) not subject to state income tax.
C) taxed at some future time.
D) are taxed at a special rate.
Answer: C Difficulty: Hard LO: 4 Page: 51-52
47. Efficient work habits are an example of
A) on-the-job training.
B) continuing education.
C) an employee’s initiative.
D) cooperative education.
Answer: C Difficulty: Easy LO: 5 Page: 53
48. The informational item included most frequently on a résumé is
A) birth date.
B) sex.
C) career objective.
D) degrees earned.
E) references.
Answer: D Difficulty: Med LO: Append. Page: 60
49. A common criticism of including a career objective on a résumé is that it
A) may be too vague.
B) takes too much room on the résumé.
C) is frequently the same as that of other candidates.
D) is not of interest to most employers.
Answer: A Difficulty: Easy LO: Append. Page: 60
50. The education section of a résumé should include
A) names of instructors.
B) course titles and numbers.
C) grades received.
D) schools attended.
E) class activities.
Answer: D Difficulty: Easy LO: Append. Page: 60
51. Tom Husson recently coordinated a fund raising project for an organization that assists homeless
youth. This would be an example of ____________ experience.
A) research
B) financial planning
C) personnel development
D) human relations
E) problem solving
Answer: B Difficulty: Easy LO: Append. Page: 60
52. Special class projects can be presented on a résumé as ____________ experience.
A) financial planning
B) supervising
C) research
D) personnel administration
E) budgeting
Answer: C Difficulty: Easy LO: Append. Page: 60
53. A chronological résumé presents personal data based on
A) experience.
B) education.
C) areas or ability.
D) career goal.
E) time.
Answer: E Difficulty: Easy LO: Append. Page: 61