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