Personal Finance Chapter 1

Question 1

An obligation of repayment owed by one party to a second party

Accepted Answer

debt

Question 2

Which of the following is not a factor in becoming money smart?

Accepted Answer

Learn how to read your credit card statements

Question 3

A fee paid by a borrower to the lender for the use of borrowed money

Accepted Answer

interest

Question 4

A system by which goods and services are produced and distributed

Accepted Answer

Economy

Question 5

The granting of a loan and the creation of debt; any form of deferred payment

Accepted Answer

Credit

Question 6

The knowledge and skillset necessary to be an informed consumer and manage finances effectively

Accepted Answer

Financial Literacy

Question 7

A person or business that offers loans at extremely high interest rates

Accepted Answer

Loan shark

Question 8

Personal financial success is primarily the result of:

Accepted Answer

Managing your money behavior

Question 9

A person or organization that uses a product or service

Accepted Answer

consumer

Question 10

A debt evidenced by a note which specifies the principal amount, interest and date of repayment

Accepted Answer

Loan

Question 11

When it comes to managing money, success is about ________% knowledge and ________% behavior.

Accepted Answer

20, 80

Question 12

Decisions of individual or family regarding their money including spending, saving, budgeting

Accepted Answer

Personal finance

Question 13

Most Americans today are wealthy and will have financial security when they retire.

Accepted Answer

False

Question 14

When it comes to personal finance, the math is easy. What's challenging is managing your ____.

Accepted Answer

Behavior

Question 15

Having debt keeps you from building wealth.

Accepted Answer

True

Questions 15