stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Personal Finance Chapter 1 Flashcards | StudBud
Explore
/
Personal Finance Chapter 1
Personal Finance Chapter 1
38 terms
·
StudBud Administration
·
612 plays
Imported from external platform
Flashcards
38 cards
F
Practice quiz
P
Host live
L
Questions
38
Answers
1
A period of temporary economic decline
recession
currency
market economy
2
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your ________.
Friends
Behavior
Bank account
Income
3
The credit system today uses high interest rates and fees to turn a profit.
False
True
4
A system by which goods and services are produced and distributed
debt
Economy
Assets
5
New Deal policymakers came up with mortgage (home loans) and consumer lending policies that convinced banks that:
They would not be able to compete with loan sharks in lending
Consumer credit could be profitable
Consumer credit was not a profitable industry
None of these
6
Since you are a teenager, what you do now with money will have little effect on your financial future.
False
True
7
When it comes to managing money, success is about ________% knowledge and ________% behavior.
60,40
50/50
70,30
20,80
8
A fee paid by a borrower to the lender for the use of borrowed money.(bills, interest)
Interest
credit
Bills
9
Which of the following statements best describes how Americans are being outsmarted by banks and other lenders?
We are driven by consumerism.
Credit is marketed so well that we have to have it .
We are taught that we can buy happiness.
Buying things on credit has become acceptable in our culture.
10
All of the decisions & activities of an individual or family regarding their money including spending, saving, budgeting
currency
debt
Personal finance
11
How does marketing affect your decisions when it comes to spending money.
Buy now pay later
Save, save , save
None of these
12
Which of the following is a consequence of spending more than you make?
A cycle of debt
Stress
Missed opportunity to save and invest
All of the above
13
Which of the following is
not
a reason credit is marketed heavily to consumers in the United States?
There is strong consumer demand for big-ticket items.
The credit industry has become extremely profitable.
The use of credit is not socially accepted in the United States.
Laws were passed to end the use of loan sharks.
14
Which of the following is
not
a true statement?
The credit industry in America has not changed much since 1917.
After 1970, consumer debt skyrocketed.
As banks made higher profits, they were willing to lend more money.
Americans learned to borrow amidst post-WWII prosperity.
15
Expensive houses and new cars are a true indication of wealth.
True
False
16
Which of the following is not a benefit of understanding your own money personality?
None of the above.
Knowing your money personality allows extra spending because its just you.
Recognizing who you are allows you the opportunity to grow and learn.
You can develop a plan that works for you.
17
An obligation of repayment owed by one party to a second party
Debt
economy
Ownership
18
The knowledge and skills necessary to be an informed consumer & manage finances effectively
financial literacy
budgeting
interest
19
Which of the following is not a factor in becoming money smart?
Manage your behavior with money
Have knowledge of basic math
Learn the language of money
Learn how to read your credit card statements
20
When developing a personal financial plan, assess your current financial situation.
True
False
21
The widespread financial insecurity of Americans is primarily because:
Most Americans save a high proportion of their income
The incomes of Americans are low
Government programs are unavailable to help people.
People save little and borrow to spend more than they earn.
22
A person or business that offers loans at extremely high-interest rates
consumer
creditor
loan shark
23
A debt evidenced by a ʺnote,ʺ which specifies the principal amount, interest rate, and date of repayment
Bank Fee
consumer
Loan
24
Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home.
False
True
25
The granting of a loan and the creation of debt; any form of deferred payment (credit, annual fee)
Credit
Consumer
Annual fee
26
Understanding your __________ and ________when it comes to money will help you manage your spending and saving behavior.
Debts and loans
None of these
economy and consumerism
strengths and weaknesses
27
Why was the use of credit uncommon prior to 1917?
Borrowing money was generally not socially acceptable.
All of the above.
Laws prevented lenders from charging high interest rates.
Lending money to others was not profitable.
28
True financial security is achieved when your money begins to generate an income-your money starts working for you.
True
False
29
Key components of financial planning include all of the following except:
Write out a detailed plan for accomplishing your goals
Replace money myths with money truths
Allow your financial planner to make all of your major money decisions
Regularly monitor and reassess your financial plan
30
Having debt keeps you from building wealth.
False
True
31
Personal financial success is primarily the result of:
Inheriting money from your parents
Managing your money behavior
Generous welfare and unemployment programs
Winning the lottery
32
The language of money is not that important because U will be able 2 depend on financial planners to manage your money.
True
False
33
Most Americans today are wealthy and will have financial security when they retire.
True
False
34
Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.
True
False
35
Which of the following best explains why students should learn about personal finance?
learning to manage money will help you to achieve a successful career
eliminate financial mistakes and promotes financial benefits for the future
financial skills are better learned through trial and error
personal finance skills are hard & require a great deal of time to learn
36
A person or organization that uses a product or service
loan shark
borrower
consumer
37
All of the following are mistakes Americans often make when it comes to money
EXCEPT
using debt as a financial tool instead of saving
not having an emergency fund
not keeping a written monthly budget
Keeping a well written budget
38
Which of the following statements best explains why income alone does not determine wealth?
Income alone does determine a personʹs wealth.
Only people who are natural savers can become wealthy.
How much they make does not affect their spending and saving behavior.
Investing is the only factor that contributes to wealth building.
