1. Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or group. ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1 NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets and Interest Rates KEY: Bloom's: Knowledge 2. Your average propensity to consume is the percentage of each dollar of income, on the average, that is spent for current needs rather than savings. ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1 NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets and Interest Rates KEY: Bloom's: Knowledge 3. A good financial plan completed when one is in their 30s will typically last a lifetime. ANS: F PTS: 1 DIF: Challenging OBJ: LO: 1-2 NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets and Interest Rates KEY: Bloom's: Synthesis 4. Financial planning is a continuing, life-long process. ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-2 NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets and Interest Rates KEY: Bloom's: Comprehension 5. Financial planning can improve your standard of living. ANS: T PTS: 1 DIF: Easy OBJ: LO: 1-1 NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets and Interest Rates KEY: Bloom's: Comprehension 6. Current consumption is inversely related to saving for the future. ANS: T PTS: 1 DIF: Challenging OBJ: LO: 1-1 NAT: BUSPROG: Reflective thinking STA: DISC: Financial Markets and Interest Rates KEY: Bloom's: Analysis 7. About 20% of Americans say retirement planning is their most p