Protection is the half of this subject students underestimate, and it carries a surprising share of the paper. Personal Finance, 13th Edition by E. Thomas Garman devotes several dense chapters to employee benefits, property and liability coverage, health and disability insurance and life insurance need analysis — material with its own arithmetic, its own vocabulary and very little overlap with the budgeting chapters people revise first. Coinsurance clauses, elimination periods, coordination of benefits and liability limits all behave in specific ways, and a question about any of them punishes intuition. Knowing that insurance transfers risk is not the same as being able to say what an insurer will pay.
Why this test bank helps
On protection questions the wrong answers are usually plausible, which is exactly why guessing gets you nowhere. Each item in this set carries a written rationale that works through the policy language — which amount the clause is measured against, what the deductible does and when it is applied, why one coverage answers a loss another would decline. Reading that reasoning after every attempt is what makes the difference between recognizing a term and being able to compute with it.
What’s inside
- Questions that follow the book chapter by chapter, so a week of reading maps to a defined block of practice.
- Mixed formats — multiple choice, true/false and applied numerical items drawn from the book’s decision worksheets.
- A written rationale below every question, explaining the rule applied and why each other option fails.
- Full weight given to the benefits, tax and insurance chapters as well as the investing material.
- One organized PDF, ready to download the moment checkout completes.
Topics covered
- Goal setting and time value — building a plan, compounding, and evaluating the cost of a delayed start.
- Career planning and employee benefits — total compensation, flexible spending accounts and workplace retirement plans.
- Income tax strategy — marginal rates, adjustments, itemized deductions, credits and tax-sheltered saving.
- Credit and student debt — revolving against installment credit, finance charges, credit scores and repayment options.
- Vehicle and housing decisions — buy against lease, rent against own, mortgage structures and the total cost of ownership.
- Property and liability insurance — homeowner and auto policy sections, deductibles, coinsurance and liability limits.
- Health, disability and long-term care — plan types, elimination periods, benefit periods and coordination of coverage.
- Life insurance and investing — needs analysis, term against cash-value policies, asset classes and retirement accounts.
Who it’s for
Undergraduates taking personal finance or personal financial planning from this edition, particularly where the course covers the risk management and benefits chapters in full rather than treating them as optional reading.
How to use it (the right way)
Read the chapter and work the decision worksheet it ends with, then attempt a block of questions closed-book. On every insurance item, before checking, write down which figure you measured the loss against — that single habit removes most coinsurance errors. This is a study aid. Use it in line with your institution’s academic-integrity policy, as preparation and self-testing rather than a shortcut around the coursework, and never as material taken into a graded assessment.
Sample question (shows the format — your download contains the full set)
Q. A home with a replacement cost of $250,000 is insured for $180,000 under a policy containing an 80% coinsurance clause. A partial loss of $40,000 occurs. Before any deductible, how much will the insurer pay?
- A. $28,800
- B. $32,000
- C. $36,000
- D. $40,000
Answer: C. The clause requires coverage of 80% of replacement cost, or $200,000. The insurer pays the loss multiplied by the ratio of coverage carried to coverage required: 180,000 / 200,000 × 40,000 = $36,000. A divides by replacement cost instead of the required amount, which is the most common slip. B applies the 80% figure directly to the loss, which is not what the clause does. D ignores the clause altogether and assumes any partial loss is paid in full.
Edition & format
- Matches: Personal Finance, 13th Edition, by E. Thomas Garman (ISBN 9781337099752).
- Format: Digital PDF, delivered instantly after checkout.
- Access: Lifetime — re-download from your account at any time.
Tax and benefit figures are updated between editions and chapters are renumbered. Please confirm the edition and ISBN above match the book your course assigned before you buy.
Frequently asked questions
Is this the current edition? This set is built for the 13th Edition, ISBN 9781337099752. Earlier editions of the title are listed separately, so use the one your syllabus names.
How do I receive it? The file is available for download the instant checkout completes, both from the confirmation page and from your account.
Do all the questions include rationales? Yes. Every question is followed by a written explanation covering the correct option and the reason each alternative fails.
Is using a test bank allowed? Used as a study aid it is ordinary practice material. Follow your institution’s academic-integrity policy and keep it out of any graded assessment.
More study material for this subject is in Finance Test Banks.
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