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TEST BANK
For
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Introduction to Personal Finance: Beginning Your
Pa
Financial Journey 3rd Edition
ss
by John E. Grable, Lance Palmer
vi
♦️♦️♦️All Chapters Included
be
♦️♦️♦️All Answers Included
s
lkjhgfdsa
, kjhgfdsa
Test Bank for Introduction to Personal Finance: Beginning Your Financial Journey 3rd Edition
Chapter 1 Beginning Your Financial Journey: The Interior Finance Point of View
1) Which of the following refers to one's ability to understand and use personal finance
information?
A) Financial risk tolerance.
B) Financial well-being.
@
C) Financial knowledge.
D) Financial ability.
Answer: C
Explanation: Financial knowledge is the ability to understand personal finance information.
Knowing who you are, where you want to go, and what skills you currently possess are essential
factors shaping your financial journey.
Diff: 1
Pa
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
2) People who believe that what happens to them is based on fate or luck might view their financial
journey as being uncertain. This is an example of
ss
A) financial risk tolerance.
B) financial literacy.
C) feelings of control.
D) financial ability.
Answer: C
Explanation: Feelings of control is the amount of control you feel you have when making
vi
financial decisions. People who believe that what happens to them is based on luck or fate might
view their financial journey as uncertain.
Diff: 1
LO: 1.1, Section 1.1
be
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
s
All Chapters Included
All Answers Included
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, kjhgfdsa
3) Internal finance includes your
A) financial knowledge.
B) financial risk tolerance.
C) feelings of control.
D) All of the choices are correct.
Answer: D
Explanation: Internal finance is essentially the combination of financial knowledge, financial
risk tolerance, and feelings of control.
@
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
Pa
4) Which of the following refers to your confidence and peace of mind regarding your financial
situation?
A) Financial literacy.
B) Financial well-being.
C) Financial knowledge.
D) Financial ability.
Answer: B
Explanation: Financial well-being is your confidence and peace of mind regarding your financial
ss
situation. Your financial well-being will increase as you apply your financial knowledge, develop
skills, and organize your finances to achieve your personal goals.
Diff: 2
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
vi
AICPA: FC: none
Min: 1
5) In addition to financial knowledge, which of the following is important in shaping your view of
the financial world?
be
A) Financial risk tolerance, only.
B) Feelings of control, only.
C) Financial well-being only.
D) Financial risk tolerance and feelings of control.
Answer: D
Explanation: Our financial decisions can be based on a biased view of the financial world, which
is based on the combination of our financial knowledge, financial risk tolerance, and feelings of
s
control.
Diff: 2
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
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, kjhgfdsa
6) Which of the following refers to your willingness to engage in financial endeavors that have
uncertain outcomes?
A) Financial literacy.
B) Financial risk tolerance.
C) Financial knowledge.
D) Financial ability.
Answer: B
@
Explanation: Your financial risk tolerance is your willingness to engage in financial endeavors
that have uncertain outcomes.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Pa
Min: 1
7) Which of the following is measured by adding up how much the United States produces in
goods and services in a year?
A) Gross domestic product.
B) The cost of goods sold.
C) Financial literacy.
D) Financial risk tolerance.
ss
Answer: A
Explanation: Gross domestic product (GDP) is measured by adding up how much a country
produces in goods and services in a year.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
vi
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
8) How much of GDP consists of consumer spending?
be
A) 46%.
B) 50%.
C) 60%.
D) 66%.
Answer: D
Explanation: In 2020, the U.S. GDP was $19.80 trillion and nearly two-thirds (66%) of GDP
consists of consumer spending.
s
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
lkjhgfdsa
, kjhgfdsa
9) Which of the following will help you outline exactly how to apply your financial knowledge to
achieve your life vision?
A) Financial literacy.
B) Financial roadmap.
C) Financial knowledge.
D) Financial ability.
Answer: B
Explanation: Envisioning the future is not easy, but having a long-term life vision and a plan
@
requires a financial roadmap, a course that will help you outline how to apply your financial
knowledge to achieve your life vision.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Pa
Min: 1
10) An action item that should be a part of everyone's journey to financial well-being includes
which of the following?
A) Keeping good records.
B) Spending less than you earn.
C) Maintaining appropriate insurance.
D) All of the choices are correct.
ss
Answer: D
Explanation: The actions that can help you to manage your financial well-being include: keeping
good records, earn money, manage taxes, spend less than you earn, save wisely, invest
strategically, maintain appropriate insurance, and plan for your future.
Diff: 2
LO: 1.1, Section 1.1
vi
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
be
11) How does consumer spending affect GDP?
A) If spending decreases, GDP increases.
B) If spending increases, GDP decreases.
C) If spending increases, GDP increases.
D) Consumer spending doesn't affect GDP.
s
Answer: C
Explanation: Gross domestic product (GDP) is measured by adding up how much a country
produces in goods and services in a year. Everything from the value of cars to the value of the
shrubs and flowers purchased at a local store is included in GDP. Since nearly two-thirds (66%) of
GDP consists of consumer spending; the more consumers spend, the larger GDP becomes. On the
other hand, if consumption slows down, GDP goes down.
Diff: 2
LO: 1.1, Section 1.1
lkjhgfdsa
, kjhgfdsa
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
12) Financial literacy takes more than financial knowledge. You must also have some key personal
behaviors, including which of the following?
A) Self-control.
@
B) A desire to apply financial information to the management of your household financial
situation.
C) An interest in personal finance topics.
D) All of the choices are correct.
Answer: D
Explanation: Financial literacy is one of the most important predictors of savings and investment
success and overall well-being. In addition to financial knowledge, you must possess financial
Pa
discipline (self-control) and a desire to develop skills and apply your financial knowledge to
achieve your personal goals.
Diff: 1
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
ss
13) Which of the following is one of the most important predictors of savings and investment
success, and overall well-being?
A) Financial literacy.
B) Financial well-being.
C) Financial knowledge.
vi
D) Financial ability.
Answer: A
Explanation: Financial literacy is one of the most important predictors of savings and investment
success and overall well-being.
Diff: 1
be
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
14) Those who increase their financial tend to experience greater life and financial
s
well-being.
A) literacy
B) risks
C) knowledge
D) ability
Answer: C
Explanation: As you apply your financial knowledge, develop skills, and organize your finances
lkjhgfdsa
TEST BANK
For
@
Introduction to Personal Finance: Beginning Your
Pa
Financial Journey 3rd Edition
ss
by John E. Grable, Lance Palmer
vi
♦️♦️♦️All Chapters Included
be
♦️♦️♦️All Answers Included
s
lkjhgfdsa
, kjhgfdsa
Test Bank for Introduction to Personal Finance: Beginning Your Financial Journey 3rd Edition
Chapter 1 Beginning Your Financial Journey: The Interior Finance Point of View
1) Which of the following refers to one's ability to understand and use personal finance
information?
A) Financial risk tolerance.
B) Financial well-being.
@
C) Financial knowledge.
D) Financial ability.
Answer: C
Explanation: Financial knowledge is the ability to understand personal finance information.
Knowing who you are, where you want to go, and what skills you currently possess are essential
factors shaping your financial journey.
Diff: 1
Pa
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
2) People who believe that what happens to them is based on fate or luck might view their financial
journey as being uncertain. This is an example of
ss
A) financial risk tolerance.
B) financial literacy.
C) feelings of control.
D) financial ability.
Answer: C
Explanation: Feelings of control is the amount of control you feel you have when making
vi
financial decisions. People who believe that what happens to them is based on luck or fate might
view their financial journey as uncertain.
Diff: 1
LO: 1.1, Section 1.1
be
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
s
All Chapters Included
All Answers Included
lkjhgfdsa
, kjhgfdsa
3) Internal finance includes your
A) financial knowledge.
B) financial risk tolerance.
C) feelings of control.
D) All of the choices are correct.
Answer: D
Explanation: Internal finance is essentially the combination of financial knowledge, financial
risk tolerance, and feelings of control.
@
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
Pa
4) Which of the following refers to your confidence and peace of mind regarding your financial
situation?
A) Financial literacy.
B) Financial well-being.
C) Financial knowledge.
D) Financial ability.
Answer: B
Explanation: Financial well-being is your confidence and peace of mind regarding your financial
ss
situation. Your financial well-being will increase as you apply your financial knowledge, develop
skills, and organize your finances to achieve your personal goals.
Diff: 2
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
vi
AICPA: FC: none
Min: 1
5) In addition to financial knowledge, which of the following is important in shaping your view of
the financial world?
be
A) Financial risk tolerance, only.
B) Feelings of control, only.
C) Financial well-being only.
D) Financial risk tolerance and feelings of control.
Answer: D
Explanation: Our financial decisions can be based on a biased view of the financial world, which
is based on the combination of our financial knowledge, financial risk tolerance, and feelings of
s
control.
Diff: 2
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
lkjhgfdsa
, kjhgfdsa
6) Which of the following refers to your willingness to engage in financial endeavors that have
uncertain outcomes?
A) Financial literacy.
B) Financial risk tolerance.
C) Financial knowledge.
D) Financial ability.
Answer: B
@
Explanation: Your financial risk tolerance is your willingness to engage in financial endeavors
that have uncertain outcomes.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Pa
Min: 1
7) Which of the following is measured by adding up how much the United States produces in
goods and services in a year?
A) Gross domestic product.
B) The cost of goods sold.
C) Financial literacy.
D) Financial risk tolerance.
ss
Answer: A
Explanation: Gross domestic product (GDP) is measured by adding up how much a country
produces in goods and services in a year.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
vi
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
8) How much of GDP consists of consumer spending?
be
A) 46%.
B) 50%.
C) 60%.
D) 66%.
Answer: D
Explanation: In 2020, the U.S. GDP was $19.80 trillion and nearly two-thirds (66%) of GDP
consists of consumer spending.
s
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
lkjhgfdsa
, kjhgfdsa
9) Which of the following will help you outline exactly how to apply your financial knowledge to
achieve your life vision?
A) Financial literacy.
B) Financial roadmap.
C) Financial knowledge.
D) Financial ability.
Answer: B
Explanation: Envisioning the future is not easy, but having a long-term life vision and a plan
@
requires a financial roadmap, a course that will help you outline how to apply your financial
knowledge to achieve your life vision.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Pa
Min: 1
10) An action item that should be a part of everyone's journey to financial well-being includes
which of the following?
A) Keeping good records.
B) Spending less than you earn.
C) Maintaining appropriate insurance.
D) All of the choices are correct.
ss
Answer: D
Explanation: The actions that can help you to manage your financial well-being include: keeping
good records, earn money, manage taxes, spend less than you earn, save wisely, invest
strategically, maintain appropriate insurance, and plan for your future.
Diff: 2
LO: 1.1, Section 1.1
vi
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
be
11) How does consumer spending affect GDP?
A) If spending decreases, GDP increases.
B) If spending increases, GDP decreases.
C) If spending increases, GDP increases.
D) Consumer spending doesn't affect GDP.
s
Answer: C
Explanation: Gross domestic product (GDP) is measured by adding up how much a country
produces in goods and services in a year. Everything from the value of cars to the value of the
shrubs and flowers purchased at a local store is included in GDP. Since nearly two-thirds (66%) of
GDP consists of consumer spending; the more consumers spend, the larger GDP becomes. On the
other hand, if consumption slows down, GDP goes down.
Diff: 2
LO: 1.1, Section 1.1
lkjhgfdsa
, kjhgfdsa
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
12) Financial literacy takes more than financial knowledge. You must also have some key personal
behaviors, including which of the following?
A) Self-control.
@
B) A desire to apply financial information to the management of your household financial
situation.
C) An interest in personal finance topics.
D) All of the choices are correct.
Answer: D
Explanation: Financial literacy is one of the most important predictors of savings and investment
success and overall well-being. In addition to financial knowledge, you must possess financial
Pa
discipline (self-control) and a desire to develop skills and apply your financial knowledge to
achieve your personal goals.
Diff: 1
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
ss
13) Which of the following is one of the most important predictors of savings and investment
success, and overall well-being?
A) Financial literacy.
B) Financial well-being.
C) Financial knowledge.
vi
D) Financial ability.
Answer: A
Explanation: Financial literacy is one of the most important predictors of savings and investment
success and overall well-being.
Diff: 1
be
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
14) Those who increase their financial tend to experience greater life and financial
s
well-being.
A) literacy
B) risks
C) knowledge
D) ability
Answer: C
Explanation: As you apply your financial knowledge, develop skills, and organize your finances
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