stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Foundations in Personal Finance - Chapter 1 Flashcards | StudBud
Explore
/
Foundations in Personal Finance - Chapter 1
Foundations in Personal Finance - Chapter 1
34 terms
·
StudBud Administration
·
466 plays
Chapter 1 Review
Flashcards
34 cards
F
Practice quiz
P
Host live
L
Questions
34
Answers
1
A person or organization that uses a product or service?
Consumer
Creditor
Customer
Borrower
2
What you do now, as a teenager, will have no effect on your financial future?
True
False
3
Why should you learn about personal finance?
Money skills are complex and require a large amount of time
Money skills are better to learn through trial and error
Help with $ mistakes & promote benefits for your future
Learning about money will get you a good career
4
Which of the following is a consequence of spending more than you make?
Stress
Missed opportunity to save
All the above
Cycle of debt
5
Which is not a factor in becoming money smart
Manage your behavior with money
Knowledge of basic math
Learning the language of money
Learn how to read your credit card statement
6
Taking on debt keeps you from building wealth?
False
True
7
How are Americans being outsmarted by financial institutions
We are driven by consumerism
Using credit is acceptable in America
Marketing/advertising makes us forget about the extra fees
We can buy happiness
8
Most Americans are wealthy and will be able to retire financially secure?
False
True
9
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
Personal Finance
Common sense
Financial literacy
Budgeting
10
Why was the use of credit uncommon prior to 1917
Borrowing was not socially acceptable
Lending money to others was not profitable
All of the above
Laws prevented high interest rates
11
Expensive houses and new cars are a true indication of wealth?
False
True
12
Learning the language of money isn't important because you can depend on financial planners?
True
False
13
Financial security is achieved when your money starts working for you?
True
False
14
A budget that works for one person is good for everyone?
True
False
15
A person/business that offers loans with extremely high interest rates?
Repo Man
Loan Shark
Creditor
Lender
16
An obligation of repayment owed by one party to a second party?
Ownership
Creditor
Debt
Credit
17
Most Americans resort to using credit for big ticket items?
True
False
18
Which is not a reason credit is marketed heavily to consumers
Credit is not socially acceptable in the U.S.
Laws have relaxed to create alternative to loan sharks
Strong consumer demand for big-ticket items
Credit industry is extremely profitable
19
Financial success is primarily the result of
Generous welfare and unemployment programs
Inheriting money from your parents
Managing your money behavior
Winning the lottery
20
The New Deal convinced lenders that
Consumer credit was not a profitable industry
Consumer credit could be a profitable industry
Middle class consumers would not be willing to use credit
They would not be able to compete with loan sharks
21
Which is not a benefit of understanding your own money personality
Once you know your personality, you can develop a plan
None of the above
Knowing who you are allows opportunity to grow and learn
Overspending is ok if it is part of your natural personality
22
Which of the following
best
explains why income alone does not determine wealth
The $ made doesn't dictate spending/saving behavior
Only natural savers can be wealthy
Investing is the only factor that helps contribute to wealth
Income alone determines wealth
23
A debt evidenced by a "note" which states principal amount, rate, and term of repayment?
Interest agreement
Contract
Bank fee
Loan
24
Period of decline when trade and activity are reduced, fall in GDP
Incline
Recession
Housing crash
Depression
25
Decisions and activities people make about money, spending, saving, budgeting?
Personal Finance
Financial Literacy
Saving
Banking
26
A system by which goods and services are produced and distributed?
Politics
Loan
Economy
Personal Finance
27
The granting of a loan and the creation of debt; any form of deferred payment?
Creditor
Interest rate
Borrower
Credit
28
When it comes to personal finance, the math is easy, the hard part is
Managing your friends
Managing your income
Managing your behavior
Managing your bank account
29
Key components of financial planning include all except
Monitor and reassess your plan
Replace money myths with truths
A detailed plan for your goals
Allow your financial planner to make all your decisions
30
When developing your plan, you should assess your income, assets, and liabilities?
True
False
31
A fee paid for the use of borrowed money?
Annual fee
Bills
Credit
Interest
32
Financial insecurity in US is primarily because
Most Americans save the majority of their income
Gov't programs are unavailable for disabled or unemployed
Our income is low
Savings is low, and we borrow to spend more than we earn
33
Financial success is about ______ % knowledge and _______% behavior
20/80
80/20
50/50
70/30
34
Which of the following is not true
After 1970, consumer debt skyrocketed
As banks make more profit, they are willing to lend more $$
The credit industry has not changed since 1917
Americans learned to borrow amidst post-WWII prosperity
