Financial Literacy Chapter 1

Question 1

A liability can be described as

Accepted Answer

money you owe; debt

Question 2

Personal finance is about 80% ______________ and only 20% head knowledge.

Accepted Answer

behavior

Question 3

Which items are wants: (check all that apply)

Accepted Answer

Deluxe coffee, Steak dinner, Special birthday celebrations

Question 4

A plan for spending is called a

Accepted Answer

budget

Question 5

A spending diary can

Accepted Answer

all of the above

Question 6

Personal finance involves all money decisions for

Accepted Answer

a budget, working, spending, saving, emergencies and giving

Question 7

The opposite of selfish is:

Accepted Answer

Selfless

Question 8

The definition of Scarcity is:

Accepted Answer

an unlimited amount of wants but limited resources

Question 9

A budget

Accepted Answer

should be written, is a plan

Question 10

______________ is owning anything to anyone for any reason.

Accepted Answer

Debt, a liability

Question 11

Which items are needs: (check all that apply)

Accepted Answer

Food, Clothing

Question 12

What is the difference between saving and investing? (Pick two)

Accepted Answer

Saving is for purchases, Investing is to build wealth, Saving is short term, Investing is long-term

Question 13

Save a $500 emergency fund

Accepted Answer

is the first foundation for your financial future

Question 14

Which allows invested money to grow over time?

Accepted Answer

compound interest

Question 15

Which are considered financially responsible actions? (more than one correct answer)

Accepted Answer

Paying cash, Spending less than you make, Planning and following a budget

Question 16

Three reasons to save money are:

Accepted Answer

Emergency Fund, Purchases, Wealth Building

Question 17

Net worth is defined as

Accepted Answer

assets minus liabilities

Question 18

Savers naturally

Accepted Answer

save money

Question 19

Refers to all the financial decisions an individual or family must make

Accepted Answer

Personal finance

Question 20

Making good financial decisions in middle school (check all that apply)

Accepted Answer

will help you develop good habits., will help you save for your first car, will help you plan and pay for college, will help you establish an emergency fund

Question 21

When should you open a bank account?

Accepted Answer

All of the above

Question 22

Name four types of expenses

Accepted Answer

Fixed, Variable, Intermittent, Discretionary

Question 23

Which purchases are considered an emergency? (Check all that apply)

Accepted Answer

Replacing damaged cell phone

Question 24

An Asset is:

Accepted Answer

Anything of value that is owned by an individual

Financial Literacy Chapter 1

Questions 24

Financial Literacy Chapter 1

Questions 24