Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this?

To promote economic recovery and social reform

Making the right choices with your money--managing your money--involves knowing how...

Earning, budgeting, saving, spending, and giving affect your money

What are The Five Foundations?

A personal financial action plan

What is the best way to avoid running out of money too quickly?

You can invest in college, You can make it a habit to plan and set goals for your money

Savers have a tendency to be

strict with money and not spend it

As a single adult, you should . . .

Keep managing your money as a priority

After World War I, the demand for products increased, and people began getting credit. Because of this, credit . . .

Started to become more socially acceptable

What does living paycheck to paycheck mean?

When a person's income is devoted to expenses and no money is saved

In 1972, what association made borrowing money to attend college much easier than it had been?

The Student Loan Marketing Association (SLMA)

When you set financial goals, they should be . . .

Specific, measurable, time-sensitive, yours, and written

What is financial literacy?

Knowledge needed to be informed consumers and manage their finances

To gain an understanding of your personal finances, you should know . . .

Where you stand financially, your income, goals, and how to reach goals

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Chapter 1 - Foundations in Personal Finance

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Questions 30

Answers

1
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this?
To alleviate financial concerns with the United Nations
To divide the naional budget in half and distribute it
To promote economic recovery and social reform
To create a borrowing system within the country
2
Making the right choices with your money--managing your money--involves knowing how...
Consumer decisions will affect your accounts
Planning, saving, spending, and investing will define your portfolio
Earning, budgeting, saving, spending, and giving affect your money
Making bank deposits using register with the correct transactions listed
3
Avoiding debt can lead to finanical freedom and hope.
False
True
4
What are The Five Foundations?
A personal financial action plan
A common conclusion for debt
A financial literacy technique
A starting point for adults regarding finances
5
You are either only a natural saver or a natural spender. You cannot have a balance of both.
False
True
6
If your assets total more than your liabilities, you will have a(n) ____ net worth.
Positive
Unknown
Equal
Negative
7
Your money personality impacts . . .
Your understanding of bank transactions
What you plan for as an adult
How you handle money
Your finanical literacy level
8
What is The First Foundation?
Pay cash for college
Open a checking account
Build wealth and give
Save a $500 emergency fund
9
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False
True
10
What is the best way to avoid running out of money too quickly?
You can invest in college
You can make it a habit to plan and set goals for your money
You can put your money in a safe place, like a bank, and not spend it
You can avoid making any purchases for the next 30 days.
11
What is The Fifth Foundation?
Find a financial professional
Build wealth and give
Get out and stay out of debt
Pay cash for your car
12
Savers have a tendency to be
strict with purchases but spend without a plan
strict with purchases for themselves
strict with money and not spend it
strict with everything but groceries
13
Using credit has not always been a socially accepted practice, but it has become . . .
A practice used by the wealthy
Necessary for life in America
Normal in American culture
Less acceptable
14
You should always make sure you have a . . .
Direct Deposit
Credit line
Budget
Credit card
15
Personal finance is all the financial decisions a(n) __ must make in order to earn, budget, save, spend, and give.
Individual or company
Company or organization
Individual or family
Bank
16
As a single adult, you should . . .
Have an accountability partner you trust somewhat
Keep managing your money as a priority
Seek a financial counselor or advisor by age 25
Beware of planned and budgeted buying
17
After World War I, the demand for products increased, and people began getting credit. Because of this, credit . . .
Started to become more socially acceptable
Was devalued in the marketplace
Was offered at even higher interest rates by loan sharks
Increased so rapidly, loan sharks became obsolete
18
Personal finance is 20% _____ and 80% _____.
Behavior; head knowledge
Reactions; behaviors
Head knowledge; behavior
Cause; effect
19
It is possible to pay for college with cash.
True
False
20
A _____ financial goal takes up to two years to reach.
Five-level
Medium-term
Long-term
Short-term
21
Without any debt, you can be outrageously
Cautious
Thrifty
Generous
Selfish
22
What does living paycheck to paycheck mean?
When someone waits for their next paycheck to plan for the month's expenses
When a person's income is devoted to expenses and no money is saved
A person cannot plan past the next paycheck due to outside circumstances
Whan a paycheck is not deposited, they are living paycheck to paycheck
23
In 1972, what association made borrowing money to attend college much easier than it had been?
The Student Loan Marketing Association (SLMA)
The Student Federal Funding Association (SFFA)
The Federal Student Approval Association (FSAA)
The Student Loan Approval Association (SLAA)
24
To know your net worth, subtract your liabilities from your ______.
Other liabilities
Net income
Previous net worth
Assets
25
When you set financial goals, they should be . . .
Specific, measurable, time-sensitive, yours, and written
Specific and measurable
Only time-sensitive
Timely, bank-based, specific, and yours
26
A money principle to keep in mind is to live on ____ you make.
Exactly 20% below what
Less than
The same as
More than
27
What is financial literacy?
Curriculum provided to college students about finances for their degrees
Knowledge needed to be informed consumers and manage their finances
The content provided in bank statements for consumers
The skills to read fiancial documents for personal finance classes
28
Being a spender has many more positives than being a saver.
False
True
29
An important money principle to consider is that you should ___ and ___ your money.
Spend; invest
Invest; lay out
Save; invest
Invest; endow
30
To gain an understanding of your personal finances, you should know . . .
Your financial goals
How much income you have
Your investment portfolio and your financial advisors' contact information
Where you stand financially, your income, goals, and how to reach goals

Chapter 1 - Foundations in Personal Finance Flashcards | StudBud