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

ml




1

,TEST BANK FOR m l m l



Introduction to Personal Finance Beginning Your Financial Journey, 2nd Edition
ml ml ml ml ml ml ml ml ml


John E. Grable, Lance Palmer
ml ml ml ml ml



Chapter 1-10 ml




Chapter 1 ml Beginning Your Financial Journey: The Interior Finance Point of View
ml ml ml ml ml ml ml ml ml




1) Which of the following refers to one's ability to understand and use
ml ml ml ml ml ml ml ml ml ml ml


personal finance information?
ml ml ml


A) Financial risk tolerance. ml ml


B) Financial well-being. ml


C) Financial knowledge. ml


D) Financialability.
Answer: C
ml


Explanation: Financial knowledge is the ability to understand personal finance ml ml ml ml ml ml ml ml


information. Knowing who you are, where you want to go, and what skills you currently
ml ml ml ml ml ml ml ml ml ml ml ml ml ml ml


possess are essential factors shaping your financial journey.
ml ml ml ml ml ml ml ml


Diff: 1 ml


LO: 1.1, Section ml


1.1 Bloom: K
ml


AACSB / IMA: none;
ml ml ml


none AICPA: FC: none
ml ml


Min: 1
ml




2) People who believe that what happens to them is based on fate or luck might view their
ml ml ml ml ml ml ml ml ml ml ml ml ml ml ml ml


financial journey as being uncertain. This is an example of
ml ml ml ml ml ml ml ml ml ml


A) financial risk tolerance. ml ml


B) financial literacy. ml


C) feelings of control. ml ml


D) financialability.
Answer: C
ml


Explanation: Feelings of control is the amount of control you feel you have when ml ml ml ml ml ml ml ml ml ml ml ml


making financial decisions. People who believe that what happens to them is based
ml ml ml ml ml ml ml ml ml ml ml ml ml


on luck or fate might view their financial journey as uncertain.
ml ml ml ml ml ml ml ml ml ml ml


Diff: 1 ml


LO: 1.1, Section ml


1.1 Bloom: C
ml


AACSB / IMA: none;
ml ml ml


none AICPA: FC: none
ml ml


Min: 1
ml




2

,3) Internal finance includes your ml ml ml


A) financial knowledge. ml


B) financial risk tolerance. ml ml


C) feelings of control. ml ml


D) All of the choices are
ml ml ml ml


correct. Answer: D
ml ml


Explanation: Internal finance is essentially the combination of financial knowledge, ml ml ml ml ml ml ml ml


financial risk tolerance, and feelings of control.
ml ml ml ml ml ml ml


Diff: 1 ml


LO: 1.1, Section ml


1.1 Bloom: K
AACSB / IMA: none;
ml ml ml


none AICPA: FC: none
ml ml


Min: 1
ml




4) Which of the following refers to your confidence and peace of mind regarding
ml ml ml ml ml ml ml ml ml ml ml ml


your financial situation?
ml ml ml


A) Financial literacy. ml


B) Financial well-being. ml


C) Financial knowledge. ml


D) Financialability.
Answer: B
ml


Explanation: Financial well-being is your confidence and peace of mind regarding your
m l ml ml ml ml ml ml ml ml ml ml


financial situation. Your financial well-being will increase as you apply your financial
ml ml ml ml ml ml ml ml ml ml ml ml


knowledge, develop skills, and organize your finances to achieve your personal goals.
ml ml ml ml ml ml ml ml ml ml ml ml


Diff: 2 ml


LO: 1.1, Sectionm l ml


1.1 Bloom:
ml ml m l


m C l


AACSB / IMA: none; ml ml


none AICPA: FC: none
ml ml ml


Min: 1
ml




5) In addition to financial knowledge, which of the following is important in shaping your view
ml ml ml ml ml ml ml ml ml ml ml ml ml ml


of the financial world?
ml ml ml ml


A) Financial risk tolerance, only. ml ml ml


B) Feelings of control, only. ml ml ml


C) Financial well-being only. ml ml


D) Financial risk tolerance and feelings of ml ml ml ml ml


control. Answer: D
ml ml


Explanation: Our financial decisions can be based on a biased view of the financial ml ml ml ml ml ml ml ml ml ml ml ml


world, which is based on the combination of our financial knowledge, financial risk
ml ml ml ml ml ml ml ml ml ml ml ml ml


tolerance, and feelings of control.
ml ml ml ml m l


Diff: 2 ml


LO: 1.1, Section ml


1.1 Bloom: C
AACSB / IMA: none;
ml ml ml


none AICPA: FC: none
ml ml




3

, Min:
ml 1




4