Ch. 1 Introduction to Personal Finance (Dave Ramsey)

Question 1

The credit system accomodates income instability w/high interest rates to turn huge profits

Accepted Answer

True

Question 2

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

Accepted Answer

False

Question 3

When developing a personal financial plan, you should assess your current financial situation

Accepted Answer

True

Question 4

Does managing your money well mean that you can't have fun with your money?

Accepted Answer

No

Question 5

Which of the following best explains why students should learn about personal finance?

Accepted Answer

It can eliminate mistakes &promote future financial benefits

Question 6

Which of the following statements best describes how Americans are being outsmarted by lenders?

Accepted Answer

Credit is marketed so we want it&dont think about the future

Question 7

Marketing can affect your decisions when it comes to spending money

Accepted Answer

True

Question 8

During the Depression, policy makers came up with mortgage policies that convinced banks that:

Accepted Answer

consumer credit could be profitable

Question 9

Everyone should have the same financial plan. One budget fits all.

Accepted Answer

False

Question 10

Why was the use of credit uncommon prior to 1917?

Accepted Answer

All of the above

Question 11

Which of the following is a consequence of spending more than you make?

Accepted Answer

All of the above

Question 12

Dave Ramsey is funny

Accepted Answer

True, False

Question 13

Most people can handle their money without a written plan

Accepted Answer

False

Question 14

Which of the following is NOT a reason credit is marketed so heavily to US consumers.

Accepted Answer

The use of credit is not socially accepted in the US

Question 15

Obligation of repayment owed by borrower to lender

Accepted Answer

Debt

Question 16

The granting of a loan and the creation of a debt (deferred payment)

Accepted Answer

Credit

Question 17

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

Accepted Answer

Interest

Question 18

Does the History of Credit and Consumerism make you view the use of credit differently?

Accepted Answer

yes, no

Question 19

A period of temporary economic decline during which trade and industrial activity are reduced

Accepted Answer

Recession

Question 20

Expensive houses and new cars are a true indication of wealth

Accepted Answer

False

Question 21

Learning the language of money is not important because you can depend on financial planners

Accepted Answer

False

Question 22

Most Americans avoid the use of credit for big-ticket items like a car or furniture

Accepted Answer

False

Question 23

When it comes to managing money, success is about _____% head knowledge and _____% behavior

Accepted Answer

20, 80

Question 24

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

Accepted Answer

Behavior

Question 25

Personal financial success is primarily the result of:

Accepted Answer

Managing your money behavior

Question 26

Since you are a teenager, what you do now with money will have little effect on your future

Accepted Answer

False

Question 27

Key components of financial planning include all of the following except:

Accepted Answer

Allow your financial planner make all major money decisions

Question 28

Having debt keeps you from building wealth.

Accepted Answer

True

Question 29

All of the decisions and activities of an individual or family regarding their money

Accepted Answer

Personal Finance

Question 30

A system by which goods and services are produced and distributed

Accepted Answer

Economy

Question 31

Which of the following statements best explains why income alone does not determine wealth?

Accepted Answer

how much $$ you make doesnt dictate spending&saving behavior

Question 32

The widespread financial insecurity of Americans is primarily because:

Accepted Answer

Savings rate is low & many borrow more than they earn

Question 33

A debt evidenced by a "note" (ex. mortgage)

Accepted Answer

Loan

Question 34

True financial security is achieved when money generates an income--your money works for you.

Accepted Answer

True

Question 35

Which of the following is not a benefit of understanding your own money personality?

Accepted Answer

Allows you to excuse excessive spending

Question 36

A person or organization that buys/uses goods or services

Accepted Answer

Consumer

Question 37

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

Accepted Answer

Learn how to read your credit card statements

Question 38

I feel I know this chapter enough to take a test tomorrow!

Accepted Answer

No, Yes

Question 39

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

Accepted Answer

Financial Literacy

Question 40

Which of the following is not a true statement?

Accepted Answer

The credit industry in America has not changed since 1917

Ch. 1 Introduction to Personal Finance (Dave Ramsey)

Questions 40

Ch. 1 Introduction to Personal Finance (Dave Ramsey)

Questions 40