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Dave Ramsey Chapter 1 Flashcards | StudBud
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Dave Ramsey Chapter 1
Dave Ramsey Chapter 1
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Personal Finance
Flashcards
35 cards
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Practice quiz
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Host live
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Questions
35
Answers
1
Person or organization that uses a product or service
Borrower
Retailer
Consumer
Merchandiser
2
The granting of a loan and the creation of a debt; any form of deferred payment
Annual Fee
Credit
none are correct
Bank Fee
3
What you do now with money has not effect on your financial future, if you are a teenager.
False
True
4
New Deal Policymakers convinced commercial banks that
They would not be able to compete with loan sharks
Consumer credit was not a profitable industry
Consumer credit could be profitable
Consumers would not be willing to use credit
5
Most Americans avoid the use of credit when it comes to buying big-ticket items like a car.
False
True
Maybe
IDK
6
Knowing your money personality does not allow you to excuse excessive spending.
False
True
7
Learning the language of money is not important because you will be able to depend on others
No way
Absolutely
IDK
Maybe
8
Key components of financial planning include all of the following except:
Replace money myths with money truths
Write out a detailed plan for accomplishing your goals
Regularly monitor and reassess your financial plan
Allow your financial planner to make all of your decisions
9
Which of the following statements best explains why income alone does not determine wealth?
The $ a person makes does not dictate her spending behavior.
Investing is the only factor that contributes to wealth
Only people who are natural savers can become wealthy.
Income alone does determine a personʹs wealth.
10
Which of the following is not a true statement?
After 1970, consumer debt skyrocketed.
Americans learned to borrow amidst post-WWII prosperity.
As banks made profits, they lent more $ to consumers.
Credit industry in America has not changed much since 1917.
11
One of the first things you should do when developing a financial plan is
assess your current financial situation
check current bank lending rates
open a savings account
talk to your financial advisor
12
Why was the use of credit uncommon prior to 1917?
Borrowing money was generally not socially acceptable.
Lending money to others was not profitable.
Laws prevented lenders from charging high interest rates.
All of these
13
Obligation of repayment owed by one party to a second party is
Debt
Ownership
Interest
Collateral
14
Personal financial success is primarily the result of:
Inheriting money from your parents
Generous welfare and unemployment programs
Winning the lottery
Managing your money behavior
15
Decisions & activities an individual/family makes regarding their money, (spending, saving...)
Economy
Debt
Consumer spending
Personal Finance
16
Debt evidenced by a "note", indicating principal amount, interest rate, and repayment date
Loan
Creditor
Collateral
Bank Fee
17
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
financial literacy
budgeting
saving
investing
18
Period of temporary economic decline: fall in gross domestic product (GDP)
Market Economy
Competition
Recession
Cycle of Debt
19
A person or business that offers loans at extremely high interest rates
loan shark
A bookie
Fifth Third Bank
creditor
20
Which of the following statements best describes how Americans are being outsmarted by banks?
Credit is marketed so well that we desire to have it
We are driven by consumerism.
Buying things on credit has become acceptable in our culture
We are taught that we can buy happiness.
21
A budget that works for one person should be sufficient for everyone.
True
False
22
Having debt keeps you from building wealth.
No
Maybe
IDK
Yes
23
System by which goods and services are produced and distributed
Economy
Market
Assets
Distribution
24
The amount of money a person makes dictates their spending and saving behavior
False
True
25
Credit system today is structured to utilize high interest rates and fees to turn huge profits.
True
False
26
A fee paid by a borrower to the lender for the use of borrowed money
Service Fee
Bills
Interest
Credit
27
When it comes to managing money, success is about ________% knowledge and ________%behavior.
60, 40
50, 50
80, 20
20, 80
28
Expensive houses and new cars are a true indication of wealth.
Always
Glue
IDK
Not usually
29
Which is not a reason credit is marketed heavily to consumers?
use of credit is not socially accepted in United States
none are correct
strong consumer demand for big-ticket items
credit industry has become extremely profitable
30
The widespread financial insecurity of Americans is primarily because:
Most Americans save a high proportion of their income
Gov. programs cannot help people when they are disabled
The incomes of Americans are low
Savings rate of Americans is low and they spend more
31
Which best explains why students should learn about personal finance?
learning to manage $ will help you get a profitable career
eliminate financial mistakes and promote financial benefits
personal finance skills-better learned through trial & error
personal finance skills are highly complex
32
Which of the following is a consequence of spending more than you make?
Missed opportunity to save and invest
All of these
Stress
A cycle of debt
33
Which of the following is not a factor in becoming money smart?
Learn how to read your credit card statements
Have knowledge of basic math
Learn the language of money
Manage your behavior with money
34
Most Americans today are wealthy and will have financial security when they retire.
Maybe
False
True
IDK
35
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your______.
Behavior
Income
Bank account
Friends
