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Marks Final Econ Review Flashcards | StudBud
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Marks Final Econ Review
Marks Final Econ Review
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Econ Review
Flashcards
48 cards
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Practice quiz
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Questions
48
Answers
1
Average interest rate for credit cards?
5-10%
18-25%
10-15%
40-50%
2
A home should only use ___________% of your take home pay?
35
15
25
50
3
What is the largest category of a budget?
food
utilities
car
home
4
A car depreciates how much in 4 years?
70%
30%
80%
50%
5
I am "upside down" on my $10,000 car, I would owe?
$0
$10,000
$11,000
$9,500
6
When money is accessible it is considered __________?
solid
funds
income
liquid
7
Why is a mutual fund better than a stock?
C. It is spread out over different investments
A. Its cheap
Both B and C
B. Less Risk
8
What is the second baby step?
Build wealth
Get out of debt using debt snowball method
Pay cash for car
Pay cash for college
9
Every dollar is assigned a purpose.
cash flow statement
envelope system
sinking fund
zero based budget
10
Who is a slave to the lender?
Borrower
Buyer
Seller
Lender
11
What does big hat no cattle mean?
rich/no animals
big head/only horses
cool style/no job
All show and no money
12
What is NOT a rule for buying real estate?
location
worst house, best neighborhood
best quality home, worst neighborhood
13
What are the last 3 baby steps?
500 emergency fund, college funnding, pay off home.
College funding, pay off home Build wealth and give.
14
Second foundation of building wealth?
pay cash for college
get out of debt
emergency fund
pay cash for your car
15
Third Foundation of building wealth?
build wealth and give
Pay cash for car
pay cash for college
emergency fund
16
Adults make decisions by ________ and ___________ to it.
hoping/sticking
feelings/sticking
wants/sticking
making a plan/sticking
17
Invest _________ % of your income into _____________?
25/entertainment fund
25/car fund
15/retirement fund
10/ the house
18
First foundation of building wealth?
build wealth and give
get out of debt
pay cash for college
$500 emergency fund
19
Big __________ no __________?
hat/cattle
horse/saddle
car/tires
fun/money
20
One method that will keep you out of financial bondage?
90 days same as cash
loans
credit cards
pay with cash
21
What is the 4th Baby Step called?
Invest 15% of income into a IRA or Roth retirements plans
Build wealth
Two - step
College Funding
22
What kind of investment is the most risky?
mutual funds
savings bonds
stocks
treasury bonds
23
Why are credit cards bad?
plastic
interest/debt
you can lose it
build credit
24
The child living inside all of us is called?
immaturity
Fred
arrogant
spoiled
25
What is your largest wealth building TOOL?
lottery
budget
income
bills
26
Name the 3rd Baby Step.
Save $500 emergency fund
Save $1000 emergency fund
Invest 15% of your income IRA/Roth retirement plans.
3 to 6 months expenses in savings
27
_______ to ___________ months expenses in your savings account.
2 to 4
5 to 10
3 to 6
5 to 7
28
A ___ is a rental on a car, while you use it for a short time and make payments then return it.
note
lease
loan
29
What is the first baby step?
$5.00
Save $10 emergency fund
Save $1000 emergency fund.
Save $0 emergency fund
30
Which one is NOT a rule for investing?
Do not use borrowed money
diversification
Tax savings
invest in one spot
31
Cash management system that Dave Ramsey says is the best way to manage you monthly money?
envelope system
cash flow plan
interest bearing account
box system
32
If I _______ like no one else, later I can _____ like no one else.....
spend
look
act
live
33
Name one rule of Investing?
Diversification
Put all your money in one stock
Bet it all
34
Name one discretionary spending category in your budget.
food
utility bill
eating out
Home
35
If you finance your home, you need to finance for __________ years at a __________ rate?
15/fixed
20/variable
15/ARM
15/variable
36
Fifth foundation of building wealth?
emergency fund
get out of debt
build wealth and give
pay cash for college
37
Children make decisions and do what makes them___________.
look good
more fun
happy
feel good
38
Pay off debt by using the ______ ___________ method.
envelope system
snow ball
zero based
compound interest
39
The __________ is slave to the __________?
rich/borrower
rich/man
poor/debt
borrower/lender
40
Building wealth is like a ___________ not a __________?
marathon/sprint
dog race/horse race
sprint/marathon
job/game
41
What should the average interest rates for a mortgage be?
1-5%
10-15%
3-5%
8-10%
42
Is using the Debt Snowball method a good way to get out of debt?
I don't know
Yes
No
Maybe
43
Average interest rate for a savings account?
5%
2%
<1%
10%
44
You should pay off your ________ early?
friends
home
car
credit cards
45
Which one is NOT one of the four walls that must be covered first?
marriage
shelter
food
shelter
46
Building wealth is __________ %behavior and ________% head?
80/20
20/80
70/30
50/50
47
Benefit of investing in a Roth IRA?
it is a pre tax investment
has a high interest rate
it has compound interest and makes a lot of money
tax free/penalty fee withdrawals
48
Who keeps you from getting rich?
you
friends
banks
parents
