True or False

1.Product differentiation refers to the attempt by firms to make their products look like those of the other firms in the industry.

2.Samantha was being treated unfairly by her boss, so she quit the job and two days later found another position. For two days, Samantha experienced structural unemployment.

3.The first step in the financial planning process is to use financial statements to evaluate results of plans and budgets, taking corrective action as required.

4.You should cut low-priority expenses from the budget if your budget shows an annual budget deficit.

5.The three components of an individual's balance sheet ate assets, liabilities and balance.

6.If your assets increased and liabilities remain constant, your net worth on the balance sheet would have increased from one period to the next.

7.Tax withholding by Australian Taxation Office (ATO) is an individual's tax credit which is refunded in full to the taxpayer at the end of financial year.

8.Mortgage interest and paid home property taxes are both itemized deduction items.

9.The largest single investment you will undertake in your lifetime will probably be the purchase of an automobile.

10.Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.

11.Credit should not consistently be used for non-durable goods.

12.Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit

problems.

13.The key to credit worthiness is to keep your debt safety ratio as high as possible.

14.Credit cards often have penalties for late payment and for exceeding credit limits.

15.Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

16.The more credit cards one has, the better one's credit score.

17.Collateral is an item of value used to secure the principal portion of a loan.

18.Consolidation loans are used to purchase new furniture and appliances when many items are needed at the same time.

19.When the market interest rate goes up, the rate on variable rate loans goes up.

20.When simple interest is used, the stated rate of interest on single payment loans is equal to the annual percentage rate (APR).