Test Bank — Introduction to Personal Finance: Beginning Your Financial Journey, 3rd Edition — John E. Grable & Lance Palmer — ISBN 978‑

Introduction to Personal Finance:

Beginning Your Financial Journey – 3rd
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Edition
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TEST BANK
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John E. Grable
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Lance Palmer
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Comprehensive Test Bank for Instructors
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and Students
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© John E. Grable & Lance Palmer

All rights reserved. Reproduction or distribution without permission is prohibited.



©STUDYSTREAM

, TABLE OF CONTENTS
Introduction to Personal Finance: Beginning Your
Financial Journey – 3rd Edition
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John E. Grable & Lance Palmer
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Chapter 1. Beginning Your Financial Journey: The Interior Finance Point of
View
Chapter 2. Tools for Your Financial Journey
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Chapter 3. Earnings and Income: The Building Blocks of Your Financial
Journey
Chapter 4. Personal Taxation
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Chapter 5. Checking Accounts, Credit Scores, and Credit Cards
Chapter 6. Loans and Housing Decisions
Chapter 7. The Foundation of Savings
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Chapter 8. Investments
Chapter 9. Risk Management: The Role of Insurance
Chapter 10. Planning for the Future: Retirement and Estate Planning
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, TEST BANK FOR
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Introduction to Personal Finance Beginning Your Financial Journey, 3rd Edition John E. Grable,
Lance Palmer
Chapter 1-10

Chapter 1 Beginning Your Financial Journey: The Interior Finance Point of View
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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.
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C) Financial knowledge.
D) Financial ability.
Answer: C
Explanation: Financial knowledge is the ability to understand personal finance information.
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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
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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
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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
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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
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Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
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, 3) Internal finance includes your
A) financial knowledge.
B) financial risk tolerance.
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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.
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Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
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4) Which of the following refers to your confidence and peace of mind regarding your financial
situation?
A) Financial literacy.
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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
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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
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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
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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.
D?
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
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LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
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