Personal Finance Chapter 1

Question 1

When it comes to managing money, success is about ____% knowledge and __% behavior

Accepted Answer

20, 80

Question 2

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

Accepted Answer

financial literacy

Question 3

T/F True financial security is achieved when your money begins to generate an income for you

Accepted Answer

T

Question 4

When it comes to personal finance, the math is easy. What's challenging is managing your _____

Accepted Answer

Behavior

Question 5

The New Deal policymakers came up with mortgage and lending policies that convinced banks that:

Accepted Answer

Consumer credit could be profitable

Question 6

Since you are a teenage what you do with money now will have little effect on your future

Accepted Answer

F

Question 7

Which of the following is not a factor in becoming money smart?

Accepted Answer

Learning how to read credit card statements

Question 8

A person or organization that uses a product or service

Accepted Answer

consumer

Question 9

Everyone should have a financial plan. A budget that works for one person will work for all

Accepted Answer

F

Question 10

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

Accepted Answer

credit

Question 11

All of the decisions and activities of an individual regarding their money: spending, saving..

Accepted Answer

personal finance

Question 12

Most americans avoid the use of credit when it comes to buying furniture or a car

Accepted Answer

F

Question 13

A period of economic decline- a fall in GDP

Accepted Answer

recession

Question 14

Which of the following is not a reason credit is marketed heavily to consumers in the US

Accepted Answer

The use of credit is not socially accepted in the US

Question 15

Having debt keeps you from building wealth

Accepted Answer

T

Question 16

Vocab: A person or business that offers loans at high interest rates

Accepted Answer

creditor

Question 17

Which of the following is a consequence of spending more than you make?

Accepted Answer

All of the above

Question 18

A system by which goods and services are produced and distributed

Accepted Answer

economy

Question 19

Personal financial success is primarily the result of:

Accepted Answer

Managing your money behavior

Question 20

Most Americans today are wealthy and will have financial security when they reitire

Accepted Answer

F

Question 21

Expensive houses and new cars are a true indication of wealth

Accepted Answer

F

Question 22

When developing a personal plan, assess your financial situation: income assets and liabilites

Accepted Answer

T

Question 23

Which of the following statements best explains why income alone does not determine wealth?

Accepted Answer

How much a person makes doesn't affect their saving habits

Question 24

The credit system is structured to accommodate a state of instability utilizing high rates

Accepted Answer

T

Question 25

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

Accepted Answer

interest

Question 26

Which of the following is not a benefit of understanding your own money personality

Accepted Answer

Knowing your personality allows you to excuse overspending

Question 27

Which of the following statements best describes how Americans are being outsmarted by lenders

Accepted Answer

Credit is marketed so we desire it even with high rates

Question 28

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

Accepted Answer

Let your financial planner make all of your major decisions

Question 29

Learning the language of money is not important because you can depend on financial planners

Accepted Answer

F

Question 30

Why should you learn about personal finance?

Accepted Answer

Learning to manage money can promote financial benefits

Question 31

The widespread financial insecurity of Americans is primarily because

Accepted Answer

Savings rate is low and borrowers spend more than they earn

Question 32

Which of the following is not a true statement

Accepted Answer

The credit industry has not changed much since 1917

Question 33

A debt evidenced by a note which specifies the principal amount interest rate and repayment

Accepted Answer

loan

Question 34

An obligation of repayment owed by one party to a second party

Accepted Answer

debt

Question 35

Why was the use of credit uncommon prior to 1917

Accepted Answer

All of the above

Personal Finance Chapter 1

Questions 35

Personal Finance Chapter 1

Questions 35