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Chapters 1-3 Review Final Exam Flashcards | StudBud
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Chapters 1-3 Review Final Exam
Chapters 1-3 Review Final Exam
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1
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930's. What was its purpose?
To alleviate financial concerns with the United Nations
To create a borrowing system within the U.S.
To divide the national budget in half and distribute it
To promote economic recovery and social reform
2
A common misconception is that budgeting will keep you from having fun, when in reality a budget . . .
Gives you permission to spend
Means there are no rules—you are free to use your money however you want
Adds more stress to your life
Restricts your fun completely
3
Debt is a tool to use to make you wealthy.
True
False
4
If you really want to save money, you've to . . .
Invest in both a Roth IRA
Live on less than you make
Fly economy class
Have a financial advisor
5
How often should you create a budget?
Daily
Weekly
Monthly
Biannually
6
The first priority in your budget should be _______ .
Investing
Giving
Spending
Saving
7
The first step you should take when you want to make a large purchase...
Decide how much you'll need to save and the time frame u want to save it in
ask your parents to loan you the money with low interest
get a new credit card
sell something and use the proceeds
8
A money principle to keep in mind is to live on
Exactly 20% below what
Less than
The same as
More than
9
What is the goal of an emergency fund?
To pay for Health Insurance
To save for your children's college expenses
To have cash on hand for unexpected events
To pay for large purchases
10
Which of the following is NOT a component of a budget?
Credit score
Income
Giving
Saving
11
________ is a millionare's best friend.
Accrued interest
High returns
Profit sharing
Compound growth
12
It's not IF an emergency happens, but _______.
When
Where
Why
How
13
Compound interest is earned at a fixed rate, while _____ is an average based on an investment's past performance
Compound growth
The principal
Interest rate
The Fifth Foundation
14
In 1972, what association made borrowing money to attend college easier.
Federal Student Approval Association (FSAA)
Student Loan Approval Association(SLAA)
Student Loan Marketing Association (SLMA)
Student Federal Funding Association (SFFA)
15
What is financial literacy?
The curriculum provided to college students about finances
The content provided in bank statements for consumers
The knowledge and skills base necessary for people to financial effectively
The skills to read financial documents for personal finance classes & goals
16
What does a budget show you?
How much money you need to earn
How much money you plan to come in and out during the month
How much money you spent last month
How much you need to save
17
What are the Four Walls?
Utilities, college fund, restaurants, and car insurance
Cell phone bill, car insurance, shelter, and money for the movies
Food, utilities, transportation, and college fund
Food, utilities, shelter, and transportation
18
Once you're out of school, have started your career, and have zero debt, your emergency fund should have _________.
$3000
3-6 months of living expenses
$5000
3-6 months of income
19
Are you ready for this exam
Of course
Absolutely
yes
Positively
20
To know your net worth, subtract your liabilities from your
assets
other liabilities
net income
previous net worth
21
Personal finance is 20% _____ & 80% ________.
Beavior; head knowledge
Head knowledge; behavior
Reactions; behaviors
Cause; effect
22
You should budget in this order
Spending, Giving, Saving
Saving, Giving, Spending
Giving, Saving, Spending
Saving, Spending, Giving
23
It is possible to pay for college with cash.
True
False
24
Going to the movies is an example of what types of expenses?
Discretionary and variable
Intermittent and variable
Intermittent and fixed
Discretionary and fixed
