Test Bank for Introduction to Personal Finance; Beginning Your Financial Journey 3rd Edition (Wiley, 2024) by John E. Grable and Lance Palmer, Isbn no; 9781394244003, all 10 Chapters Covered

TEST BANK
INTRODUCTION TO PERSONAL FINANCE; BEGINNING YOUR
FINANCIAL JOURNEY 3RD EDITION (WILEY, 2024) BY JOHN
E. GRABLE AND LANCE PALMER, ISBN NO; 9781394244003,
ALL 10 CHAPTERS COVERED

,Test Bank for Introduction to Personal Finance; Beginning Your Financial Journey 3rd Edition (Wiley,
2024) by John E. Grable and Lance Palmer, Isbn no; 9781394244003, all 10 Chapters Covered

TABLE OF CONTENTS
1. Beginning Your Financial Journey: The Interior Finance Point of View


2. Tools for Your Financial Journey


3. Earnings and Income: The Building Blocks of Your Financial Journey


4. Personal Taxation


5. Checking Accounts, Credit Scores, and Credit Cards


6. Loans and Housing Decisions


7. The Foundation of Savings


8. Investments


9. Risk Management: The Role of Insurance


10. Planning for the Future: Retirement and Estate Planning

,Test Bank for Introduction to Personal Finance; Beginning Your Financial Journey 3rd Edition (Wiley,
2024) by John E. Grable and Lance Palmer, Isbn no; 9781394244003, all 10 Chapters Covered

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
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
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
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 Bloom: C
AACSB / IMA: none; none AICPA: FC: none
Min: 1


3) Internal finance includes your
A) financial knowledge.
B) financial risk tolerance.
C) feelings of control.
D) All of these answer 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


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
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 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?
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
control.
Diff: 2
LO: 1.1, Section 1.1 Bloom: C
AACSB / IMA: none; none AICPA: FC: none
Min: 1