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,TEST BANK FOR ma ma




Introduction to Personal Finance Beginning Your Financial Journey, 3rd Edition John E. Grable, La
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Chapter 1-10 ma




Chapter 1 ma 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 financ
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e information?
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A) Financial risk tolerance. ma ma



B) Financial well-being. ma



C) Financial knowledge. ma



D) Financial ability. ma



Answer: C
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Explanation: Financial knowledge is the ability to understand personal finance information. Kno
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wing who you are, where you want to go, and what skills you currently possess are essential factors
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shaping your financial journey.
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Diff: 1 ma



LO: 1.1, Section 1.
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1 Bloom: K
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AACSB / IMA: none; non ma ma m a ma



e AICPA: FC: none
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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
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A) financial risk tolerance. ma ma



B) financial literacy. ma



C) feelings of control. ma ma



D) financial ability. ma



Answer: C
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Explanation: Feelings of control is the amount of control you feel you have when making fin
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ancial decisions. People who believe that what happens to them is based on luck or fate might v
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iew their financial journey as uncertain.
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Diff: 1 ma



LO: 1.1, Section 1.
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1 Bloom: C
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AACSB / IMA: none; non ma ma m a ma



e AICPA: FC: none
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,3) Internal finance includes your ma ma ma



A) financial knowledge. ma



B) financial risk tolerance. ma ma



C) feelings of control. ma ma



D) All of these answer choices are correct.
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Answer: D
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Explanation: Internal finance is essentially the combination of financial knowledge, financial r
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isk tolerance, and feelings of control.
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LO: 1.1, Section 1. m a ma ma



1 Bloom: K
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AACSB / IMA: none; non ma ma m a ma



e AICPA: FC: none
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Min: 1 m a m a




4) Which of the following refers to your confidence and peace of mind regarding your financi
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al situation?
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A) Financial literacy. ma



B) Financial well-being. ma



C) Financial knowledge. ma



D) Financial ability. ma



Answer: B
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Explanation: Financial well- m a ma



being is your confidence and peace of mind regarding your financial situation. Your financial wel
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being will increase as you apply your financial knowledge, develop skills, and organize your fin
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ances to achieve your personal goals.
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Diff: 2 ma



LO: 1.1, Section 1.1m a ma ma



Bloom: C
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AACSB / IMA: none; non ma ma m a ma



e AICPA: FC: none
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Min: 1 m a m a




5) In addition to financial knowledge, which of the following is important in shaping your view o
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f the financial world?
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A) Financial risk tolerance, only. ma ma ma



B) Feelings of control, only. ma ma ma



C) Financial well-being only. ma ma



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



Answer: D
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Explanation: Our financial decisions can be based on a biased view of the financial world, whic
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h is based on the combination of our financial knowledge, financial risk tolerance, and feelings
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of control.
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Diff: 2 ma



LO: 1.1, Section 1. m a ma ma



1 Bloom: C
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AACSB / IMA: none; non ma ma m a ma




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, e AICPA: FC: none
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Min: 1
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