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Chapter 1 Personal Finance Flashcards | StudBud
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Chapter 1 Personal Finance
Chapter 1 Personal Finance
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Chapter 1
Flashcards
20 cards
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Practice quiz
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Host live
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Questions
20
Answers
1
Which of the following is a consequence of spending more than you make?
Stress
Missed opportunity to save and invest
All the above
A cycle of debt
2
A fee paid by a borrower to the lender for the use of borrowed money
bills
debt
interest
loan
3
A fee paid by a borrower to the lender for the use of borrowed money
interest
economy
loan
debt
4
Which of the following is not a reason credit is marketed heavily to consumers in the U.S?
The use of credit is not socially accepted in the U.S
The credit industry has become extremely profitable
There is strong consumer demand for big-ticked items
5
The widespread financial insecurity of Americans is primarily because:
Many borrow in order to spend more than they earn.
Government programs are unavailable to help people
Most Americans see a high proportion of their income
The incomes of Americans are low
6
What is a debt?
A system by which goods and services are produced
An obligation of repayment owed
7
When it comes to personal finance, the math is easy. What's challenging is managing your
Income
Bank account
Behavior
Friends
8
Key components include all except
replace money myths with money truths
monitor and reassess
detailed plan
allow your planner to make all your decisions
9
When it comes to managing money, Success is about __% knowledge and ___% behavior
80/20
60/40
50/50
20/80
10
Personal Fiance success is primarily the result of
Winning the lottery
Generous welfare and unemployment
Inheriting money from your parents
Managing your money behavior
11
The knowledge and skill set necessary to be an informed consumer & manage money effectively
budgeting
financial literacy
ownership
loan shark
12
A period of temporary economic decline is
market economy
recession
13
A system by which goods and and services are produced and distributed
assets
fee
economy
bills
14
What's a consumer?
A company that sells product to people
A person/organization that uses a product or service
15
Why was the use of credit uncommon prior to 1917?
All of the above
Lending money to others was not profitable
Borrowing money was generally not socially acceptable
Laws prevented lenders from charging high interest rates
16
What's a loan shark?
A person that uses a product or service
A person/business that offers loans at high interest rates
17
What should students learn about personal finance?
Personal finance skills are better learned through mistakes
Managing your money can promote financial benefits
18
Which of the following is not a true statement?
After 1970, consumer debt skyrocketed
Banks landed more money out to consumers.
The credit industry has not changed much since 1917.
Americans learned to borrow post-WWII prosperity
19
A note, which specifies the principal amount, interest rate and date of repayment
loan
bank fee
20
Which of the following is not a factor in becoming money smart?
Learn the language of money
Have knowledge of basic math
Manage your behavior with money
Learn how to read your credit card statements
