SOLUTION MANUAL FOR
Introduction to Personal Finance Beginning Your Financial
Journey, 2nd Edition John E. Grable, Lance Palmer
Chapter 1-10
Chapter..1—Solutions..Manual
Beginning..Your..Financial..Journey:..The..Interior..Finance..Point..of..View
Introduction..to..Personal..Finance:..Beginning..Your..Financial..Journey
By..John..Grable..and..Lance..Palmer
Learning..Objectives
1.1 Describe..how..your..financial..knowledge,..experience,..risk..tolerance,..and..feelings..of..con
trol..influence..the..way..you..view..the..financial..world.
1.2 Explain..how..your..human..and..social..capital..relate..to..your..financial..well-being.
,1.3 Discuss..how..financial..risk..tolerance..relates..to..financial..goal..achievement.
1.4 Use..your..unique..time..perspective..to..create..SMART..financial..goals.
1.5 Describe..strategies..to..overcome..mental..biases..and..improve..financial..decision..making..
and..well-being.
Key..to..metadata..for..questions:
LO:..Learning..objective..number
BT:..Bloom‘s..taxonomy..[Knowledge..(K),..Comprehension..(C),..Application..(Ap),..Analysis..(An),..
Synthesis..(S),..Evaluation..(E)]
Diff:..Difficulty..level..[Easy..(E),..Medium..(M),..Hard..(H
)]..TOT:..Expected..time..for..student..to..complete
AACSB:..Knowledge..(K),..Communication..(C),..Ethics..(E),..Analytic..(A),..Technology..(T),..Diversi
ty..(D),..Reflective..Thinking..(RT),..Not..Applicable..(NA)
Sample..rubric..for..writing..questions:
Note:..It..is..generally..recommended..that..the..rubric..be..shared..with..students,..so..it..should
..be..sufficiently..general..to..not..give..away..answers.
Notes..for..instructor:
Each..writing..question..will..have..criteria..which..are..specific..to..the..question...The..instruct
or..may..want..to..add..or..delete..grading..criteria..(rows)..depending..on..the..topic..and..assig
nment...How..each..grading..criterion..will..be..assessed..and..the..associated..points..for..eac
h..level..of..performance..are..found..in..columns..2–5.
, In..the..sample..rubric,..a..total..of..16..points..are..possible..for..this..assignment...Each..gradin
g..criterion..(row)..is..worth..up..to..4..points..(column..2).
Rubric:..(It..is..suggested..that..the..rubric..be..shared..with..the..students.)
Full..points 75%..of..points 50%..of..points 25%..of..points
Criteria
..(4..out..of.. (3..out..of..4) (2..out..of..4) (1..out..of..4)
4)
Thoroughness..of..ans
The..question.. The..response..is..l The..response..is.. The..response..is..inc
wer..to..the..question
is..answered..t acking..a..few..det lacking..significant omplete..and..limited
horoughly ails ..details
Amounts..and.
Much..of..the..re The..response..does..
.information..di Some..of..the..resp
Answer..is..realistic/rel sponse..is..irrele not..represent..realis
scussed..are..r onse..is..irrelevant.
evant vant,..unrealistic tic..or..relevant..unde
elevant..and..p .to..the..question
,..or..overly..simp rstanding..of..topic
ertinent..to..th
listic
e..question
Organization/clarity..
Well..orga Adequate..organiz Limited..organizati
of..thought Poor..organization
nized ation on
(25%..of..score)
A..clear..concl
usion..or..reco
mmendati..on..
Appropriate..recomm Conclusion..or..re
is..presented.
endations..and..concl commendation..is. Conclusion..or..re No..conclusion..or..re
. that..is..appro
usions..are..reached .mostly..clear..and commendation..is. commendation..is..pro
priate..given..t
(25%..of..score) ..appropriate..give .incomplete vided
he..content
n..the..content
discussed
1.1 Describe..how..your..financial..knowledge,..experience,..risk..to
lerance,..and..feelings..of..control..influence..the..way..you..view..the..fi
nancial..world.
1.1 Multiple-Choice..Questions
1. b...the..combination..of..financial..knowledge..and..skills.
Answer:..b;..Section:..1.1;..LO:..1.1;..BT:..K;..Diff:..E;..TOT:..2..min;..AACSB:..K
2. c...I..and..II..only.
Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
3. d...your..financial..knowledge,..financial..risk-
taking,..and..feelings..of..control..over..your..situation.
Answer:..d;..Section:..1.1;..LO:..1.1;..BT:..K;..Diff:..E;..TOT:..2..min;..AACSB:..RT
, 4. c...believe..strongly..in..luck..and..fate
Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
5. a...more..knowledgeable..about..the..financial..marketplace..over..time..and..to..increase.
.his..personal..wealth.
Answer:..a;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
6. c...Having..and..raising..a..child.
Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
7. a...Consumer..spending.
Answer:..a;..Section:..1.1;..LO:..1.1;..BT:..K;..Diff:..E;..TOT:..2..min;..AACSB:..K
8. b...GDP..would..fall..because..consumers..would..spend..less..on..goods..and..servi
ces...Answer:..b;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..R
T
9. a...A..willingness..to..save..money..on..a..regular..basis.
Answer:..a;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
10. c...Michelle,..who..gives..regularly..to..charity,..reads..about..investing..and..is..self-
confident...Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..
RT
1.1. Adventures..in..Personal..Finance
Short..Answer
1. Answer:..High-
quality..responses..should..include..a..discussion..of..how..the..wealth..was..accumulated,..
work..effort,..and..locus..of..control..(chance..versus..work),..and..also..include..a..discussio
n..of..the..student‘s..perception..of..his..or..her..locus..of..control...Please..refer..to..the..sam
ple..writing..assignment..rubric..in..the..solutions..manual.
Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..15..min;..AACSB:..RT,..E
2. Answer:..Risk..tolerance..describes..your..willingness..to..engage..in..financial..activities..that..
have..uncertain..outcomes...Individuals..with..low..risk..tolerance..may..be..fearful..of..the..finan
cial..markets..and..financial..activities..and..avoid..them...As..your..financial..literacy..increase
s..and..risk..perceptions..are..properly..understood,..your..willingness..to..engage..in..risks..ma
y. . increase.
Section:..1.1;..LO:..1.1;..BT:..Ap;..Diff:..M;..TOT:..5..min;..AACSB:..RT,..A
3. Answer:..High-
quality..responses..should..include..a..discussion..of..how..savings..behavior..may..differ..betw
een..generations...Please..refer..to..the..sample..writing..assignment..rubric..in..the..solutions..
Introduction to Personal Finance Beginning Your Financial
Journey, 2nd Edition John E. Grable, Lance Palmer
Chapter 1-10
Chapter..1—Solutions..Manual
Beginning..Your..Financial..Journey:..The..Interior..Finance..Point..of..View
Introduction..to..Personal..Finance:..Beginning..Your..Financial..Journey
By..John..Grable..and..Lance..Palmer
Learning..Objectives
1.1 Describe..how..your..financial..knowledge,..experience,..risk..tolerance,..and..feelings..of..con
trol..influence..the..way..you..view..the..financial..world.
1.2 Explain..how..your..human..and..social..capital..relate..to..your..financial..well-being.
,1.3 Discuss..how..financial..risk..tolerance..relates..to..financial..goal..achievement.
1.4 Use..your..unique..time..perspective..to..create..SMART..financial..goals.
1.5 Describe..strategies..to..overcome..mental..biases..and..improve..financial..decision..making..
and..well-being.
Key..to..metadata..for..questions:
LO:..Learning..objective..number
BT:..Bloom‘s..taxonomy..[Knowledge..(K),..Comprehension..(C),..Application..(Ap),..Analysis..(An),..
Synthesis..(S),..Evaluation..(E)]
Diff:..Difficulty..level..[Easy..(E),..Medium..(M),..Hard..(H
)]..TOT:..Expected..time..for..student..to..complete
AACSB:..Knowledge..(K),..Communication..(C),..Ethics..(E),..Analytic..(A),..Technology..(T),..Diversi
ty..(D),..Reflective..Thinking..(RT),..Not..Applicable..(NA)
Sample..rubric..for..writing..questions:
Note:..It..is..generally..recommended..that..the..rubric..be..shared..with..students,..so..it..should
..be..sufficiently..general..to..not..give..away..answers.
Notes..for..instructor:
Each..writing..question..will..have..criteria..which..are..specific..to..the..question...The..instruct
or..may..want..to..add..or..delete..grading..criteria..(rows)..depending..on..the..topic..and..assig
nment...How..each..grading..criterion..will..be..assessed..and..the..associated..points..for..eac
h..level..of..performance..are..found..in..columns..2–5.
, In..the..sample..rubric,..a..total..of..16..points..are..possible..for..this..assignment...Each..gradin
g..criterion..(row)..is..worth..up..to..4..points..(column..2).
Rubric:..(It..is..suggested..that..the..rubric..be..shared..with..the..students.)
Full..points 75%..of..points 50%..of..points 25%..of..points
Criteria
..(4..out..of.. (3..out..of..4) (2..out..of..4) (1..out..of..4)
4)
Thoroughness..of..ans
The..question.. The..response..is..l The..response..is.. The..response..is..inc
wer..to..the..question
is..answered..t acking..a..few..det lacking..significant omplete..and..limited
horoughly ails ..details
Amounts..and.
Much..of..the..re The..response..does..
.information..di Some..of..the..resp
Answer..is..realistic/rel sponse..is..irrele not..represent..realis
scussed..are..r onse..is..irrelevant.
evant vant,..unrealistic tic..or..relevant..unde
elevant..and..p .to..the..question
,..or..overly..simp rstanding..of..topic
ertinent..to..th
listic
e..question
Organization/clarity..
Well..orga Adequate..organiz Limited..organizati
of..thought Poor..organization
nized ation on
(25%..of..score)
A..clear..concl
usion..or..reco
mmendati..on..
Appropriate..recomm Conclusion..or..re
is..presented.
endations..and..concl commendation..is. Conclusion..or..re No..conclusion..or..re
. that..is..appro
usions..are..reached .mostly..clear..and commendation..is. commendation..is..pro
priate..given..t
(25%..of..score) ..appropriate..give .incomplete vided
he..content
n..the..content
discussed
1.1 Describe..how..your..financial..knowledge,..experience,..risk..to
lerance,..and..feelings..of..control..influence..the..way..you..view..the..fi
nancial..world.
1.1 Multiple-Choice..Questions
1. b...the..combination..of..financial..knowledge..and..skills.
Answer:..b;..Section:..1.1;..LO:..1.1;..BT:..K;..Diff:..E;..TOT:..2..min;..AACSB:..K
2. c...I..and..II..only.
Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
3. d...your..financial..knowledge,..financial..risk-
taking,..and..feelings..of..control..over..your..situation.
Answer:..d;..Section:..1.1;..LO:..1.1;..BT:..K;..Diff:..E;..TOT:..2..min;..AACSB:..RT
, 4. c...believe..strongly..in..luck..and..fate
Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
5. a...more..knowledgeable..about..the..financial..marketplace..over..time..and..to..increase.
.his..personal..wealth.
Answer:..a;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
6. c...Having..and..raising..a..child.
Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
7. a...Consumer..spending.
Answer:..a;..Section:..1.1;..LO:..1.1;..BT:..K;..Diff:..E;..TOT:..2..min;..AACSB:..K
8. b...GDP..would..fall..because..consumers..would..spend..less..on..goods..and..servi
ces...Answer:..b;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..R
T
9. a...A..willingness..to..save..money..on..a..regular..basis.
Answer:..a;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..RT
10. c...Michelle,..who..gives..regularly..to..charity,..reads..about..investing..and..is..self-
confident...Answer:..c;..Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..2..min;..AACSB:..
RT
1.1. Adventures..in..Personal..Finance
Short..Answer
1. Answer:..High-
quality..responses..should..include..a..discussion..of..how..the..wealth..was..accumulated,..
work..effort,..and..locus..of..control..(chance..versus..work),..and..also..include..a..discussio
n..of..the..student‘s..perception..of..his..or..her..locus..of..control...Please..refer..to..the..sam
ple..writing..assignment..rubric..in..the..solutions..manual.
Section:..1.1;..LO:..1.1;..BT:..C;..Diff:..E;..TOT:..15..min;..AACSB:..RT,..E
2. Answer:..Risk..tolerance..describes..your..willingness..to..engage..in..financial..activities..that..
have..uncertain..outcomes...Individuals..with..low..risk..tolerance..may..be..fearful..of..the..finan
cial..markets..and..financial..activities..and..avoid..them...As..your..financial..literacy..increase
s..and..risk..perceptions..are..properly..understood,..your..willingness..to..engage..in..risks..ma
y. . increase.
Section:..1.1;..LO:..1.1;..BT:..Ap;..Diff:..M;..TOT:..5..min;..AACSB:..RT,..A
3. Answer:..High-
quality..responses..should..include..a..discussion..of..how..savings..behavior..may..differ..betw
een..generations...Please..refer..to..the..sample..writing..assignment..rubric..in..the..solutions..
