TEST BANK FOR Introduction To Personal Finance Beginning Your Financial Journey, 2nd Edition By John E. Grable, Lance Palmer Chapter 1-10

1
Introduction To Personal Finance Beginning Your Financial Journey, 2nd Edition




TEST BANK FOR
Introduction To Personal Finance Beginning Your
Financial Journey, 2nd Edition By John E. Grable, Lance
Palmer
Chapter 1-10




1|P age ( Intr oduct ion T o P er sonal Finance B e ginning Y our
Financial Journey, 2nd Edition)

, 2
Introduction To Personal Finance Beginning Your Financial Journey, 2nd Edition



Table Of Contents
Chapter 1 Beginning Your Financial Journey: The Interior Finance Point Of View .................................... 3
Chapter 2 Tools For Your Financial Journey ............................................................................................. 29
Chapter 3 Earnings And Income: The Building Blocks Of Your Financial Journey .................................... 82
Chapter 4 Personal Taxation .................................................................................................................. 116
Chapter 5 Checking Accounts, Credit Scores, And Credit Cards ............................................................ 155
Chapter 6 Loans And Housing Decisions ................................................................................................ 188
Chapter 7 The Foundation Of Savings .................................................................................................... 232
Chapter 8 Investments ........................................................................................................................... 273
Chapter 9 Risk Management: The Role Of Insurance ............................................................................ 344
Chapter 10 Planning For The Future: Retirement And Estate Planning .............................................. 387




2|P age ( Intr oduct ion T o P er sonal Finance B e ginning Y our
Financial Journey, 2nd Edition)

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Introduction To Personal Finance Beginning Your Financial Journey, 2nd Edition



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 Aicpa: Fc: None
Min: 1

3) Internal Finance Includes Your
A) Financial Knowledge.
B) Financial Risk Tolerance.
C) Feelings Of Control.
D) All Of The 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


3|P age ( Intr oduct ion T o P er sonal Finance B e ginning Y our
Financial Journey, 2nd Edition)

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Introduction To Personal Finance Beginning Your Financial Journey, 2nd Edition


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
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

7) Which Of The Following Is Measured By Adding Up How Much The United States
Produces In Goods And Services In A Year?

4|P age ( Intr oduct ion T o P er sonal Finance B e ginning Y our
Financial Journey, 2nd Edition)