1
,TEST BANK FOR cn cn
Introduction to Personal Finance Beginning Your Financial Journey, 3rd Edition John E. Grable, Lanc
cn cn cn cn cn cn cn cn cn cn cn cn cn
e Palmer
cn
Chapter 1-10 cn
Chapter 1 cn Beginning Your Financial Journey: The Interior Finance Point of View
cn cn cn cn cn cn cn cn cn
1) Which of the following refers to one's ability to understand and use personal finance i
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
nformation?
A) Financial risk tolerance. cn cn
B) Financial well-being. cn
C) Financial knowledge. cn
D) Financial ability. cn c
Answer: C
n c n
Explanation: Financial knowledge is the ability to understand personal finance information. Knowi
c n cn cn cn cn cn cn cn cn cn cn
ng who you are, where you want to go, and what skills you currently possess are essential factors shap
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
ing your financial journey.
cn cn cn
Diff: 1 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: K
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
2) People who believe that what happens to them is based on fate or luck might view their financial jo
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
urney as being uncertain. This is an example of
cn cn cn cn cn cn cn cn
A) financial risk tolerance. cn cn
B) financial literacy. cn
C) feelings of control. cn cn
D) financial ability. cn c
Answer: C
n c n
Explanation: Feelings of control is the amount of control you feel you have when making finan
c n cn cn cn cn cn cn cn cn cn cn cn cn cn cn
cial decisions. People who believe that what happens to them is based on luck or fate might view t
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
heir financial journey as uncertain.
cn cn cn cn
Diff: 1 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: C
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
2
,3) Internal finance includes your cn cn cn
A) financial knowledge. cn
B) financial risk tolerance. cn cn
C) feelings of control. cn cn
D) All of these answer choices are correct.
cn cn cn cn cn cn cn
Answer: D c n
Explanation: Internal finance is essentially the combination of financial knowledge, financial ris
c n cn cn cn cn cn cn cn cn cn cn
k tolerance, and feelings of control.
cn cn cn cn cn
Diff: 1 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: K
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
4) Which of the following refers to your confidence and peace of mind regarding your financial
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
situation?
A) Financial literacy. cn
B) Financial well-being. cn
C) Financial knowledge. cn
D) Financial ability. cn c
Answer: B
n c n
Explanation: Financial well- c n cn
being is your confidence and peace of mind regarding your financial situation. Your financial well-
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
being will increase as you apply your financial knowledge, develop skills, and organize your finan
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
ces to achieve your personal goals.
cn cn cn cn cn
Diff: 2 cn
LO: 1.1, Section 1.1
c n cn cn cn
Bloom: C c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
5) In addition to financial knowledge, which of the following is important in shaping your view of t
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
he financial world?
cn cn
A) Financial risk tolerance, only. cn cn cn
B) Feelings of control, only. cn cn cn
C) Financial well-being only. cn cn
D) Financial risk tolerance and feelings of control. cn cn cn cn cn cn cn
Answer: D c n
Explanation: Our financial decisions can be based on a biased view of the financial world, which i
c n cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
s based on the combination of our financial knowledge, financial risk tolerance, and feelings of c
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cncn
ontrol.
Diff: 2 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: C
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
3
, Min: c n c n 1
4
,TEST BANK FOR cn cn
Introduction to Personal Finance Beginning Your Financial Journey, 3rd Edition John E. Grable, Lanc
cn cn cn cn cn cn cn cn cn cn cn cn cn
e Palmer
cn
Chapter 1-10 cn
Chapter 1 cn Beginning Your Financial Journey: The Interior Finance Point of View
cn cn cn cn cn cn cn cn cn
1) Which of the following refers to one's ability to understand and use personal finance i
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
nformation?
A) Financial risk tolerance. cn cn
B) Financial well-being. cn
C) Financial knowledge. cn
D) Financial ability. cn c
Answer: C
n c n
Explanation: Financial knowledge is the ability to understand personal finance information. Knowi
c n cn cn cn cn cn cn cn cn cn cn
ng who you are, where you want to go, and what skills you currently possess are essential factors shap
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
ing your financial journey.
cn cn cn
Diff: 1 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: K
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
2) People who believe that what happens to them is based on fate or luck might view their financial jo
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
urney as being uncertain. This is an example of
cn cn cn cn cn cn cn cn
A) financial risk tolerance. cn cn
B) financial literacy. cn
C) feelings of control. cn cn
D) financial ability. cn c
Answer: C
n c n
Explanation: Feelings of control is the amount of control you feel you have when making finan
c n cn cn cn cn cn cn cn cn cn cn cn cn cn cn
cial decisions. People who believe that what happens to them is based on luck or fate might view t
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
heir financial journey as uncertain.
cn cn cn cn
Diff: 1 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: C
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
2
,3) Internal finance includes your cn cn cn
A) financial knowledge. cn
B) financial risk tolerance. cn cn
C) feelings of control. cn cn
D) All of these answer choices are correct.
cn cn cn cn cn cn cn
Answer: D c n
Explanation: Internal finance is essentially the combination of financial knowledge, financial ris
c n cn cn cn cn cn cn cn cn cn cn
k tolerance, and feelings of control.
cn cn cn cn cn
Diff: 1 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: K
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
4) Which of the following refers to your confidence and peace of mind regarding your financial
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
situation?
A) Financial literacy. cn
B) Financial well-being. cn
C) Financial knowledge. cn
D) Financial ability. cn c
Answer: B
n c n
Explanation: Financial well- c n cn
being is your confidence and peace of mind regarding your financial situation. Your financial well-
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
being will increase as you apply your financial knowledge, develop skills, and organize your finan
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
ces to achieve your personal goals.
cn cn cn cn cn
Diff: 2 cn
LO: 1.1, Section 1.1
c n cn cn cn
Bloom: C c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
Min: 1 c n c n
5) In addition to financial knowledge, which of the following is important in shaping your view of t
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
he financial world?
cn cn
A) Financial risk tolerance, only. cn cn cn
B) Feelings of control, only. cn cn cn
C) Financial well-being only. cn cn
D) Financial risk tolerance and feelings of control. cn cn cn cn cn cn cn
Answer: D c n
Explanation: Our financial decisions can be based on a biased view of the financial world, which i
c n cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
s based on the combination of our financial knowledge, financial risk tolerance, and feelings of c
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cncn
ontrol.
Diff: 2 cn
LO: 1.1, Section 1.1
c n cn cn c
Bloom: C
n c n
AACSB / IMA: none; none cn cn c n cn c
AICPA: FC: none
n c n cn
3
, Min: c n c n 1
4
