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Ch 1 Intro to Personal Finance Review Flashcards | StudBud
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Ch 1 Intro to Personal Finance Review
Ch 1 Intro to Personal Finance Review
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Dave Ramsey Chapter 1 Review
Flashcards
35 cards
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Practice quiz
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Questions
35
Answers
1
Using credit has not always been a socially accepted practice, but it has become normal in society.
True
False
2
Knowing your ___ is the starting point for a financial plan.
net worth
credit
credit card
personal income
3
Having a ___ means the amount of your liabilities or DEBT is larger than the value of your assets or STUFF.
net income
net worth
negative net worth
positive net worth
4
The knowledge needed to manage your finances effectively.
credit
financial literacy
personal finance
consumer awareness
5
A person or company that charges outrageously high interst rates on loans is called a .
interest rate
credit
consumer service
loan shark
6
Most American families have debt and struggle financially.
True
False
7
What is the 50/30/20 rule
Essentials/Entertainment/Saving
Savings/Essentials/Entertainment
Entertainment/Saving/Essentials
Essentials/Saving/Entertainment
8
The granting of a loan and the creation of debt.
mortgage
repayment
credit
banking
9
The hardest part of making a budget is
counting up your income and bills
writing it down
sticking to it
evaluating it
10
The use of credit is very popular in the United States.
False
True
11
You don't really need to know the language of money.
True
False
12
Being in debt keeps you from building wealth.
True
False
13
Which of the following is NOT a true statement?
after 1917, consumer debt skyrocketed
Americans learned to borrow amidst post-WW2 prosperity
americas credit industry's haven't changed much since 1917
banks made higher profits, so they would lend more money
14
A system by which goods and services are produced and distributed.
household
communism
labor
economy
15
Self control is ___ maturity.
emotional
strong
physical
fantasy
16
A personal financial action plan is also known as
The Five Foundations
a literacy technique
The Vegas way to Wealth
key to passing all your classes
17
A person or organization that buys/uses goods or services.
supplier
manufacturer
consumer
producer
18
Which of the following BEST describes how Americans are being outsmarted by banks?
buying things on credit has become acceptable in our culture
we are driven by consumerism
we are taught that we can buy happiness
credit is marketed so well that we so well that we want it
19
The credit industry is NOT very profitable.
True
False
20
A well written budget will allow you to
always worry about money
forget about money completely
never have fun
spend, save and have some fun
21
How you handle your money is affected by
your style
your parents
your money personality
22
What is the First Foundation?
build wealth and give
Pay cash for college
save $500 emergency fund
open a checking account
23
Anything you own that has value is called a(n)
welcomed gift
asset
money
penalty
24
The best way to learn how to manage money is to learn how to manage ______.
money
others
yourself
your job
25
Avoiding debt can lead to
a rich uncles estate
financial freedom and hope
a good looking spouse and vacations
winning the lottery
26
Personal finance is ___% head knowledge and ____% behavior.
50/50
60/40
20/80
80/20
27
Managing your money well involves knowing how
earning, budgeting, saving, spending and giving affect your money
to make bank deposits and write checks
to use a credit card and pay off debt
28
Which of the following BEST explains why students should learn about personal finance?
personal finance skills are complex so require time to learn
personal finance skills are better learned through trial
learning to manage money helps you have a profitable career
learning to manage money can eliminate financial mistakes.
29
why was the use of credit uncommon prior to 1917?
lending money to others was not profitable
laws prevented lenders from charging high interest rates
borrowing money was generally not socially acceptable
all of the above
30
Using all your money from one paycheck to get to the next is referred to as
being bankrupt
living a wealthy life
living paycheck to paycheck
being comfortable
31
Dave says you can buy happiness.
True
False
32
the dollar value of a person’s liabilities is larger than the value of their assets
Liability
Negative Net Worth
Positive Net Worth
Expense
33
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Liability
Net worth
asset
Financial Plan
34
When it comes to managing money, you need ___% knowledge and __% behavior.
50 / 50
80 / 20
20 / 80
35
All the decisions of an individual regarding money.
personal finance
personal loans
personal approval
