B603 DR Chapter 1

Question 1

Which of the following is NOT a reason credit is marketed so heavily to consumers in the USA?

Accepted Answer

The use of credit is not socially accepted in the USA

Question 2

person or organization that uses a product or service.

Accepted Answer

consumer

Question 3

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

Accepted Answer

Personal Finance

Question 4

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

Accepted Answer

Allow your financial planner to make your money decisions

Question 5

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

Accepted Answer

financial literacy

Question 6

A debt evidenced by a "note," which specifies the principal, interest rate & date of repayment.

Accepted Answer

loan

Question 7

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

Accepted Answer

Interest

Question 8

obligation or repayment owed by one party (the debtor) to a second party (creditor)

Accepted Answer

Debt

Question 9

A system by which goods and services are produced and distributed.

Accepted Answer

economy

Question 10

The widespread financial insecurity of Americans is primarily because:

Accepted Answer

American saving rate is low;they borrow to spend > they earn

Question 11

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

Accepted Answer

credit

Question 12

T/F: As a teenager, what you with money now will have little effect on your financial future

Accepted Answer

False

Question 13

Learning the language of money isn't important because you can rely solely on financialplanners

Accepted Answer

False

Question 14

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

Accepted Answer

20,80

Question 15

Which of the following is not a true statement?

Accepted Answer

credit industry in America has not changed much since 1917.

Question 16

T/F:Most Americans avoid the use of credit when buying big-ticket items like a car or furniture

Accepted Answer

False

Questions 16