FULL TEST BANK For Introduction to Personal Finance: Beginning Your Financial Journey 2nd Edition by John E. Grable Latest Update Graded A+

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,TEST BANK FOR f f f f



Introduction to Personal Finance Beginning Your Financial Journey, 2nd Edition
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John E. Grable, Lance Palmer
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Chapter 1-10 ff




Chapter 1 ff 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
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personal finance information?
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A) Financial risk tolerance. ff ff


B) Financial well-being. ff


C) Financial knowledge. ff


D) Financialability.
Answer: C
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Explanation: Financial knowledge is the ability to understand personal finance information. ff ff ff ff ff ff ff ff ff


Knowing who you are, where you want to go, and what skills you currently possess are
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essential factors shaping your financial journey.
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Diff: 1 ff


LO: 1.1, Section ff


1.1 Bloom: K
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AACSB / IMA: none;
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none AICPA: FC: none
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Min: 1
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2) People who believe that what happens to them isbased on fate orluck might view their financial
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journey as being uncertain. This is an example of
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A) financial risk tolerance. ff ff


B) financial literacy. ff


C) feelings of control. ff ff


D) financialability.
Answer: C
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Explanation: Feelings of control is the amount of control you feel you have when ff ff ff ff ff ff ff ff ff ff ff ff


making financial decisions. People who believe that what happens to them is based on
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luck or fate might view their financial journey as uncertain.
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Diff: 1 ff


LO: 1.1, Section ff


1.1 Bloom: C
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AACSB / IMA: none;
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none AICPA: FC: none
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Min: 1
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,3) Internal finance includes your ff ff ff


A) financial knowledge. ff


B) financial risk tolerance. ff ff


C) feelings of control. ff ff


D) All of the choices are correct.
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Answer: D
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Explanation: Internal finance is essentially the combination of financial knowledge, ff ff ff ff ff ff ff ff


financial risk tolerance, and feelings of control.
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Diff: 1 ff


LO: 1.1, Section ff


1.1 Bloom: K
AACSB / IMA: none;
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none AICPA: FC: none
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Min: 1
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4) Which of the following refers to your confidence and peace of mind regarding
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your financial situation?
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A) Financial literacy. ff


B) Financial well-being. ff


C) Financial knowledge. ff


D) Financialability.
Answer: B
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Explanation: Financial well-being is your confidence and peace of mind regarding your
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financial situation. Your financial well-being will increase as you apply your financial
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knowledge, develop skills, and organize your finances to achieve your personal goals.
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Diff: 2 ff


LO: 1.1, Section 1.1
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Bloom:
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AACSB / IMA: none; ff ff


none AICPA: FC: none
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Min: 1
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5) In addition to financial knowledge, which of the following is important in shaping your view of
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the financial world?
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A) Financial risk tolerance, only. ff ff ff


B) Feelings of control, only. ff ff ff


C) Financial well-being only. ff ff


D) Financial risk tolerance and feelings of control. ff ff ff ff ff ff


Answer: D
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Explanation: Our financial decisions can be based on a biased view of the financial ff ff ff ff ff ff ff ff ff ff ff ff


world, which is based on the combination of our financial knowledge, financial risk
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tolerance, and feelings of control.
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Diff: 2 ff


LO: 1.1, Section ff


1.1 Bloom: C
AACSB / IMA: none;
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none AICPA: FC: none
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Min: 1
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, 6) Which of the following refers to your willingness to engage in financial endeavors
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that have uncertain outcomes?
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A) Financial literacy. ff


B) Financial risk tolerance. ff ff


C) Financial knowledge. ff


D) Financialability.
Answer: B
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Explanation: Your financial risk tolerance is your willingness to engage in ff ff ff ff ff ff ff ff ff


financial endeavors that have uncertain outcomes.
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Diff: 1 ff


LO: 1.1, Section ff


1.1 Bloom: K
AACSB / IMA: none;
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none AICPA: FC: none
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Min: 1
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7) Which of the following is measured by adding up how much the United States
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produces in goods and services in a year?
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A) Gross domestic product. ff ff


B) The cost of goods sold.
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C) Financial literacy. ff


D) Financialrisktolerance.
Answer: A
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Explanation: Gross domestic product (GDP) is measured by adding up how much a ff ff ff ff ff ff ff ff ff ff ff


country produces in goods and services in a year.
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Diff: 1 ff


LO: 1.1, Section ff


1.1 Bloom: K
AACSB / IMA: none;
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none AICPA: FC: none
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Min: 1
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8) How much of GDP consists of consumer spending?
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A) 46%.
B) 50%.
C) 60%.
D) 66%.
Answer: D
Explanation: In 2020, the U.S. GDP was $19.80 trillion and nearly two-thirds (66%) of
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GDP consists of consumer spending.
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Diff: 1 ff


LO: 1.1, Section ff


1.1 Bloom: K
AACSB / IMA: none;
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none AICPA: FC: none
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Min: 1
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