TEST BANK FOR FV FV
Introduction to Personal Finance Beginning Your Financial Journey, 3rd Edition John E. Grable,
FV FV FV FV FV FV FV FV FV FV FV FV
Lance Palmer
FV FV
Chapter 1-10
FV
Chapter 1 FV Beginning Your Financial Journey: The Interior Finance Point of View
FV FV FV FV FV FV FV FV FV
1) Which of the following refers to one's ability to understand and use personal fi
FV FV FV FV FV FV FV FV FV FV FV FV FV
nance information?
FV
A) Financial risk tolerance. FV FV
B) Financial well-being. FV
C) Financial knowledge. FV
1
,D) Financial ability FV
. Answer: C
FV F V
Explanation: Financial knowledge is the ability to understand personal finance information. K
F V FV FV FV FV FV FV FV FV FV FV
nowing who you are, where you want to go, and what skills you currently possess are essential
FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV
factors shaping your financial journey.
FV FV FV FV FV
Diff: 1 FV
LO: 1.1, Section 1.
F V FV FV
1 Bloom: K
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
2) People who believe that what happens to them is based on fate or luck might view their fina
FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV
ncial journey as being uncertain. This is an example of
FV FV FV FV FV FV FV FV FV
A) financial risk tolerance. FV FV
B) financial literacy. FV
C) feelings of control. FV FV
D) financial ability FV
. Answer: C
FV F V
Explanation: Feelings of control is the amount of control you feel you have when making
F V FV FV FV FV FV FV FV FV FV FV FV FV FV
financial decisions. People who believe that what happens to them is based on luck or fate
FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV F
Vmight view their financial journey as uncertain.
FV FV FV FV FV FV
Diff: 1 FV
LO: 1.1, Section 1.
F V FV FV
1 Bloom: C
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
2
,3) Internal finance includes your FV FV FV
A) financial knowledge. FV
B) financial risk tolerance. FV FV
C) feelings of control. FV FV
D) All of these answer choices are corre
FV FV FV FV FV FV
ct. Answer: D
FV F V
Explanation: Internal finance is essentially the combination of financial knowledge, financi
F V FV FV FV FV FV FV FV FV FV
al risk tolerance, and feelings of control.
FV FV FV FV FV FV
Diff: 1 FV
LO: 1.1, Section 1.F V FV FV
1 Bloom: K
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
4) Which of the following refers to your confidence and peace of mind regarding your fin
FV FV FV FV FV FV FV FV FV FV FV FV FV FV
ancial situation? FV
A) Financial literacy. FV
B) Financial well-being. FV
C) Financial knowledge. FV
D) Financial ability FV
. Answer: B
FV F V
Explanation: Financial well- F V FV
being is your confidence and peace of mind regarding your financial situation. Your financial
FV FV FV FV FV FV FV FV FV FV FV FV FV F
Vwell-
being will increase as you apply your financial knowledge, develop skills, and organize you
FV FV FV FV FV FV FV FV FV FV FV FV FV
r finances to achieve your personal goals.
FV FV FV FV FV FV
Diff: 2 FV
LO: 1.1, Section 1.F V FV FV
1 Bloom: C
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
5) In addition to financial knowledge, which of the following is important in shaping your vi
FV FV FV FV FV FV FV FV FV FV FV FV FV FV
ew of the financial world?
FV FV FV FV
A) Financial risk tolerance, only. FV FV FV
B) Feelings of control, only. FV FV FV
C) Financial well-being only. FV FV
D) Financial risk tolerance and feelings of contr FV FV FV FV FV FV
ol. Answer: D
FV F V
Explanation: Our financial decisions can be based on a biased view of the financial world,
F V FV FV FV FV FV FV FV FV FV FV FV FV FV FV
which is based on the combination of our financial knowledge, financial risk tolerance, and
FV FV FV FV FV FV FV FV FV FV FV FV FV F
Vfeelings of control. FV FVFV
Diff: 2 FV
LO: 1.1, Section 1.F V FV FV
1 Bloom: C
FV F V
AACSB / IMA: none; no FV FV F V FV
3
, ne AICPA:
FV F V FC: none
FV
Min: 1F V F V
4
Introduction to Personal Finance Beginning Your Financial Journey, 3rd Edition John E. Grable,
FV FV FV FV FV FV FV FV FV FV FV FV
Lance Palmer
FV FV
Chapter 1-10
FV
Chapter 1 FV Beginning Your Financial Journey: The Interior Finance Point of View
FV FV FV FV FV FV FV FV FV
1) Which of the following refers to one's ability to understand and use personal fi
FV FV FV FV FV FV FV FV FV FV FV FV FV
nance information?
FV
A) Financial risk tolerance. FV FV
B) Financial well-being. FV
C) Financial knowledge. FV
1
,D) Financial ability FV
. Answer: C
FV F V
Explanation: Financial knowledge is the ability to understand personal finance information. K
F V FV FV FV FV FV FV FV FV FV FV
nowing who you are, where you want to go, and what skills you currently possess are essential
FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV
factors shaping your financial journey.
FV FV FV FV FV
Diff: 1 FV
LO: 1.1, Section 1.
F V FV FV
1 Bloom: K
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
2) People who believe that what happens to them is based on fate or luck might view their fina
FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV
ncial journey as being uncertain. This is an example of
FV FV FV FV FV FV FV FV FV
A) financial risk tolerance. FV FV
B) financial literacy. FV
C) feelings of control. FV FV
D) financial ability FV
. Answer: C
FV F V
Explanation: Feelings of control is the amount of control you feel you have when making
F V FV FV FV FV FV FV FV FV FV FV FV FV FV
financial decisions. People who believe that what happens to them is based on luck or fate
FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV FV F
Vmight view their financial journey as uncertain.
FV FV FV FV FV FV
Diff: 1 FV
LO: 1.1, Section 1.
F V FV FV
1 Bloom: C
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
2
,3) Internal finance includes your FV FV FV
A) financial knowledge. FV
B) financial risk tolerance. FV FV
C) feelings of control. FV FV
D) All of these answer choices are corre
FV FV FV FV FV FV
ct. Answer: D
FV F V
Explanation: Internal finance is essentially the combination of financial knowledge, financi
F V FV FV FV FV FV FV FV FV FV
al risk tolerance, and feelings of control.
FV FV FV FV FV FV
Diff: 1 FV
LO: 1.1, Section 1.F V FV FV
1 Bloom: K
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
4) Which of the following refers to your confidence and peace of mind regarding your fin
FV FV FV FV FV FV FV FV FV FV FV FV FV FV
ancial situation? FV
A) Financial literacy. FV
B) Financial well-being. FV
C) Financial knowledge. FV
D) Financial ability FV
. Answer: B
FV F V
Explanation: Financial well- F V FV
being is your confidence and peace of mind regarding your financial situation. Your financial
FV FV FV FV FV FV FV FV FV FV FV FV FV F
Vwell-
being will increase as you apply your financial knowledge, develop skills, and organize you
FV FV FV FV FV FV FV FV FV FV FV FV FV
r finances to achieve your personal goals.
FV FV FV FV FV FV
Diff: 2 FV
LO: 1.1, Section 1.F V FV FV
1 Bloom: C
FV F V
AACSB / IMA: none; no FV FV F V FV
ne AICPA: FC: none
FV F V FV
Min: 1 F V F V
5) In addition to financial knowledge, which of the following is important in shaping your vi
FV FV FV FV FV FV FV FV FV FV FV FV FV FV
ew of the financial world?
FV FV FV FV
A) Financial risk tolerance, only. FV FV FV
B) Feelings of control, only. FV FV FV
C) Financial well-being only. FV FV
D) Financial risk tolerance and feelings of contr FV FV FV FV FV FV
ol. Answer: D
FV F V
Explanation: Our financial decisions can be based on a biased view of the financial world,
F V FV FV FV FV FV FV FV FV FV FV FV FV FV FV
which is based on the combination of our financial knowledge, financial risk tolerance, and
FV FV FV FV FV FV FV FV FV FV FV FV FV F
Vfeelings of control. FV FVFV
Diff: 2 FV
LO: 1.1, Section 1.F V FV FV
1 Bloom: C
FV F V
AACSB / IMA: none; no FV FV F V FV
3
, ne AICPA:
FV F V FC: none
FV
Min: 1F V F V
4
