stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Ramsey Final Exam Practice Flashcards | StudBud
Explore
/
Ramsey Final Exam Practice
Ramsey Final Exam Practice
58 terms
·
StudBud Administration
·
3 plays
Imported from external platform
Flashcards
58 cards
F
Practice quiz
P
Host live
L
Questions
58
Answers
1
The process of balancing your account means
you make sure your records match what your bank shows
report mistakes made by the bank right away
if the bank statement says I have more $ than I say - do nothing
report any fraudulent charges right away
2
Proximity Principle: In order 2 do what U want 2 do, U need 2 be _ people who are doing it & in __ where it‘s happening.
Around; places
Researching; areas
Nice to; areas
Friendly to; proximity to
3
Mutual funds are less risky and can outperform the stock market because . . .
They guarantee a high rate of return
They're not diversified
They're fully liquid
They invest in several companies at once
4
An interest rate charged during the early stages of a loan; it goes up after a period of time.
interest rate
introductory rate
APR
flat rate
5
What is the 5th Foundation?
Pay cash for college
Save for retirement
Build wealth & give
Pay cash for your home
6
You can obtain a free copy of your credit report
monthly
annually
daily
weekly
7
Before you invest, you should make sure a mutual fund has done well for 5-10 years.
True
False
8
To know your net worth, subtract your liablitlies from your
net income
Assets
previous net worth
other liabilities
9
What is the First Foundation?
Pay cash for college
Build wealth and give
Open a checking account
Save a $500 emergency fund
10
A loan based on a person's financial resources or ability to repay.
mortgage
unsecured loan
secured loan
payday loan
11
Your money personality impacts
Your understanding of bank transactions
How you handle money
Y0ur financial literacy level
What you plan for as an adult
12
A form of financial aid the does not need to be paid back based on need.
Scholarship
Award
none of the above
Grant
13
Once you're out of school, have started your career, and have zero debt, your emergency fund should have _____________.
3–6 months of living expenses
$5000
3–6 months of income
$1000
14
While saving money isn't easy at first, it will make your life a lot _________ in the future if you make it a habit now.
Poorer
Longer
Harder
Easier
15
The average repayment period for a student loan making minimum payments is
15 years
20 years
5 years
10 year
16
Social Security benefits are meant to ________ your income.
Decrease
Tax 100% of
Fully replace
Replace 40% of
17
The interest rate on a savings account determines . . .
The amount of time your money will be inthe account
How quickly your money will grow over time
How much money you need to have to openthe account
How much you will pay the bank to manage the account
18
Why is budgeting so important?
It helps you brush up on your math skills.
Gives you control of your money & sets u up for money success in the future
It's a way to make sure all your money is spent at the end of the month.
Helps u figure out the best way 2 justify purchases that aren't necessary.
19
____________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
Outrageous generosity
Retirement planning
Investment banking
Retirement accounting
20
The first step in finding your dream job is ______
Dreaming about it
Discovering your talents, passions, and values
Applying
Interviewing
21
A long-term rental agreement on a car; a form of secured long-term debt.
rent
loan
lease
mortgage
22
Which of the following affects a credit score?
debt history
type of debt
debt levels
all of the above
23
Diversification reduces your __________ by using a mix of investment types in your portfolio.
Mutual funds
Income
Retiremenet funds
Risk
24
______ is key when it comes to compound growth.
Time
Roth IRA
Money
Attitude
25
How often should you create a budget?
Daily
Biannually
Monthly
Weekly
26
What is an example of putting the Proximity Principle into practice?
Volunteering
Listening to a podcast
Reading
Researching
27
A form that all students complete to determine their eligibility for financial aid.
GED
HUD
FAFSA
FHA
28
What is the Third Foundation?
Pay cash for your car.
Create a monthly budget
Invest early
Pay cash for college.
29
The top three careers reported among millionaires were:
pro athletes, banker, CEOs
Lawyers; surgeons; accountants
accountants, engineers, teachers
Celebrities; developers; writers
30
Make sure your bank has plenty of _____ and _____.
Security breaches; foreign transaction fees
Insurance; monthly maintenance fees
ATM locations; a mobile banking app
branches; low-interest rates
31
Which of the following is NOT a component of a budget?
Income
Saving
Credit score
Giving
32
How do banks make money
Account fees
Interest on loans
ATM fees
Overdraft fees
33
When is the right time to start creating and living by a budget?
When you decide it's time to buy a car.
Once you have a job with a consistent income.
When you start researching colleges & the costs that come along with them.
Right now - it's never too early to start!
34
The FDIC and NCUA keep your money n the bank insured up to ____ per account
$250,000
$250
$2,500
$25,000
35
What does living paycheck to paycheck mean
someone eagerly awaits their next paycheck to plan the month's expenses
when someone can't plan past the next paycheck
when a person chooses to not deposit their paychecks
occurs when a person's income is devoted to expenses, not savings
36
The only place you should keep your emergency fund money is..
A safe in your bedroom
An envelope in a safe place
A Roth IRA
A savings account or money market account.
37
What is the envelope system?
A way to budget by using a credit card to pay for each enveloped category.
It's a system that involves writing your entire budget on an envelope.
A method of budgeting using envelopes of cash for discretionary categories.
Budgeting with an app that organizes categories based on envelope amounts.
38
What is the key to failure?
Avoiding it
Talking about it
Never embracing it
Learning from it
39
A person that starts his or her own business.
Associate
Advisor
Administrator
Entrepreneur
40
It's your responsibility to know about all of the ___ before choosing a bank
branch locations
employees who work there
fees and services involved
options for loans
41
What is the 5th foundation
Pay cash for your car
get out of and stay out of debt
find a financial professional
build wealth and give
42
Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of ______________.
Mutual funds
Investment bankets
Retirement plans
Tax forms
43
If you're over the age of ___, you need a will.
14
29
18
60
44
If you're over the age of ___, you need a will.
18
29
60
14
45
Commission is when you make money based on _______.
a percentage of the total sales price of an item.
all items sold at a cashier's register in a store.
your budget.
your investments.
46
How many months does it usually take for one's budget to start working as a budget should?
1
4
5
3
47
You need to track everything that involves money (your bank account), including...
debit card purchases, third-party app transactions, and atm withdrawals
your clothing budget for the month
the latest retail store credit card offers
all of the sales that are currently happening
48
If you really want to save money, you've got to . . .
Fly economy class
Have a financial advisor
Live on less than you make
Invest in a Roth IRA
49
The very best investment you can make is in ___
Yourself
Others
The stock market
Real Estate
50
Pick 3 questions that you should ask yourself before you spend your emergency fund
Is it unexpected
Is it urgent
Is it popular
Is it necessary
51
A loan where the collateral will be taken if a person defaults on the loan.
installment loan
secured loan
unsecured loan
mortgage
52
What is the Third Foundation?
Invest early
Create a monthly budget
Pay cash for your car.
Pay cash for college.
53
When you set financial goals, they should be
specific and measurable
timely, bank-based, specific, and yours
specific, measurable, time-sensitive, yours and written
only time-sensitive
54
____________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
Retirement planning
Outrageous generosity
Retirement accounting
Investment banking
55
What factor/s would help get a mortgage without a credit score
small down payment
history of utility payments
paying rental payments late
being unemployed
56
. The best way to budget is...
any way that works best for you.
by creating an Excel spreadsheet.
by using paper and pencil - a must!
by using a digital app.
57
Your resume should NOT include ____
Your past job experiences
Your education
Professional references
How much money you want to make
58
______ is an example of a soft skill.
Analytics
Being a team player
Computer programming
Building a house
