conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking tohis friends before his
death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his
students from theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4]("
")— Siddhārtha Gautama Buddha, Shakya sage who founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes
tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who before theenemy can close with us."[8]—
TEST BANK FOR
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
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
1
, 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
BCE), tohis servant during theBattleofMount Gilboa"My reputation carried me safe through Greece, but theenvy it excited at home has been my ruin."[14][note 2]— Anacharsis, Scythian philosopher (6th
century BCE), mortally wounded with an arrow by his brother, King Caduidas"You know that during thelong time I have beenintheworld, I have said and done many things; upon mature reflection, I find
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who
satinjudgmentononeofmy own good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn
my friend. After careful consideration, I devised this expedient. I delivered with such address all themost plausible argumentsinbehalfoft heaccused, that my two colleagues found no difficultyinacquitting him,
and yet I, myself, condemned him todeath without assigning any reason formy conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt
whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking tohis friends before his death"Itisbetter toperish here than tokill all these poor
beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from theCrotonians throughafava bean
fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]—
Confucius, Chinese philosopher who founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from
dropsy"For, no Athenian, through my means, ever wore mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give
theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes,
Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was sentenced todeath after being accusedofquestioning traditional Athenian
values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κρίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηρσόνα• ἀλλὰ ἀπόδοηε καὶ μὴ ἀμελήζηηε")— Socrates, Greek philosopher (399
BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder your path lies. Hurry
and save yourselves before theenemy can close with us."[8]—
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
2
, 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
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
Min: 1
BCE), tohis servant during theBattleofMount Gilboa"My reputation carried me safe through Greece, but theenvy it excited at home has been my ruin."[14][note 2]— Anacharsis, Scythian philosopher (6th
century BCE), mortally wounded with an arrow by his brother, King Caduidas"You know that during thelong time I have beenintheworld, I have said and done many things; upon mature reflection, I find
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who
satinjudgmentononeofmy own good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn
my friend. After careful consideration, I devised this expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him,
and yet I, myself, condemned him todeath without assigning any reason formy conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt
whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking tohis friends before his death"Itisbetter toperish here than tokill all these poor
beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from theCrotonians throughafava bean
fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]—
Confucius, Chinese philosopher who founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from
dropsy"For, no Athenian, through my means, ever wore mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give
theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes,
Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was sentenced todeath after being accusedofquestioning traditional Athenian
values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κρίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηρσόνα• ἀλλὰ ἀπόδοηε καὶ μὴ ἀμελήζηηε")— Socrates, Greek philosopher (399
BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder your path lies. Hurry
and save yourselves before theenemy can close with us."[8]—
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.
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
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
3
, 8) How much of GDP consists of consumer spending?
A) 46%.
B) 50%.
C) 60%.
D) 66%.
Answer: D
Explanation: In 2022, the U.S. GDP was $24.46 trillion and nearly two-thirds (66%) of GDP
consists of consumer spending.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
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
Min: 1
BCE), tohis servant during theBattleofMount Gilboa"My reputation carried me safe through Greece, but theenvy it excited at home has been my ruin."[14][note 2]— Anacharsis, Scythian philosopher (6th
century BCE), mortally wounded with an arrow by his brother, King Caduidas"You know that during thelong time I have beenintheworld, I have said and done many things; upon mature reflection, I find
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who
satinjudgmentononeofmy own good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn
my friend. After careful consideration, I devised this expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him,
and yet I, myself, condemned him todeath without assigning any reason formy conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt
whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking tohis friends before his death"Itisbetter toperish here than tokill all these poor
beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from theCrotonians throughafava bean
fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]—
Confucius, Chinese philosopher who founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from
dropsy"For, no Athenian, through my means, ever wore mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give
theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes,
Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was sentenced todeath after being accusedofquestioning traditional Athenian
values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κρίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηρσόνα• ἀλλὰ ἀπόδοηε καὶ μὴ ἀμελήζηηε")— Socrates, Greek philosopher (399
BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder your path lies. Hurry
and save yourselves before theenemy can close with us."[8]—
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 these answer choices are correct.
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.
4
death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his
students from theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4]("
")— Siddhārtha Gautama Buddha, Shakya sage who founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes
tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who before theenemy can close with us."[8]—
TEST BANK FOR
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
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
1
, 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
BCE), tohis servant during theBattleofMount Gilboa"My reputation carried me safe through Greece, but theenvy it excited at home has been my ruin."[14][note 2]— Anacharsis, Scythian philosopher (6th
century BCE), mortally wounded with an arrow by his brother, King Caduidas"You know that during thelong time I have beenintheworld, I have said and done many things; upon mature reflection, I find
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who
satinjudgmentononeofmy own good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn
my friend. After careful consideration, I devised this expedient. I delivered with such address all themost plausible argumentsinbehalfoft heaccused, that my two colleagues found no difficultyinacquitting him,
and yet I, myself, condemned him todeath without assigning any reason formy conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt
whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking tohis friends before his death"Itisbetter toperish here than tokill all these poor
beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from theCrotonians throughafava bean
fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]—
Confucius, Chinese philosopher who founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from
dropsy"For, no Athenian, through my means, ever wore mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give
theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes,
Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was sentenced todeath after being accusedofquestioning traditional Athenian
values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κρίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηρσόνα• ἀλλὰ ἀπόδοηε καὶ μὴ ἀμελήζηηε")— Socrates, Greek philosopher (399
BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder your path lies. Hurry
and save yourselves before theenemy can close with us."[8]—
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
2
, 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
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
Min: 1
BCE), tohis servant during theBattleofMount Gilboa"My reputation carried me safe through Greece, but theenvy it excited at home has been my ruin."[14][note 2]— Anacharsis, Scythian philosopher (6th
century BCE), mortally wounded with an arrow by his brother, King Caduidas"You know that during thelong time I have beenintheworld, I have said and done many things; upon mature reflection, I find
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who
satinjudgmentononeofmy own good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn
my friend. After careful consideration, I devised this expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him,
and yet I, myself, condemned him todeath without assigning any reason formy conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt
whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking tohis friends before his death"Itisbetter toperish here than tokill all these poor
beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from theCrotonians throughafava bean
fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]—
Confucius, Chinese philosopher who founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from
dropsy"For, no Athenian, through my means, ever wore mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give
theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes,
Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was sentenced todeath after being accusedofquestioning traditional Athenian
values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κρίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηρσόνα• ἀλλὰ ἀπόδοηε καὶ μὴ ἀμελήζηηε")— Socrates, Greek philosopher (399
BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder your path lies. Hurry
and save yourselves before theenemy can close with us."[8]—
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.
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
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
3
, 8) How much of GDP consists of consumer spending?
A) 46%.
B) 50%.
C) 60%.
D) 66%.
Answer: D
Explanation: In 2022, the U.S. GDP was $24.46 trillion and nearly two-thirds (66%) of GDP
consists of consumer spending.
Diff: 1
LO: 1.1, Section 1.1
Bloom: K
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
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
Min: 1
BCE), tohis servant during theBattleofMount Gilboa"My reputation carried me safe through Greece, but theenvy it excited at home has been my ruin."[14][note 2]— Anacharsis, Scythian philosopher (6th
century BCE), mortally wounded with an arrow by his brother, King Caduidas"You know that during thelong time I have beenintheworld, I have said and done many things; upon mature reflection, I find
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who
satinjudgmentononeofmy own good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn
my friend. After careful consideration, I devised this expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him,
and yet I, myself, condemned him todeath without assigning any reason formy conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt
whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking tohis friends before his death"Itisbetter toperish here than tokill all these poor
beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from theCrotonians throughafava bean
fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]—
Confucius, Chinese philosopher who founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from
dropsy"For, no Athenian, through my means, ever wore mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give
theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes,
Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was sentenced todeath after being accusedofquestioning traditional Athenian
values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κρίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηρσόνα• ἀλλὰ ἀπόδοηε καὶ μὴ ἀμελήζηηε")— Socrates, Greek philosopher (399
BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder your path lies. Hurry
and save yourselves before theenemy can close with us."[8]—
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 these answer choices are correct.
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.
4
