Finance > TEST BANKS > Test Bank for Introduction to Personal Finance Beginning Your Financial Journey, 2nd Edition John E. (All)

Test Bank for Introduction to Personal Finance Beginning Your Financial Journey, 2nd Edition John E. Grable, Lance Palmer

Document Content and Description Below

Test Bank for Introduction to Personal Finance Beginning Your Financial Journey, 2nd Edition John E. Grable, Lance Palmer-1) Which of the following refers to one's ability to understand and use perso... nal 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 2 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 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 3 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 [Show More]

Last updated: 9 months ago

Preview 5 out of 537 pages

Buy Now

Instant download

We Accept: