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Dave Ramsey Chapter 1- Spring 2019 Flashcards | StudBud
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Dave Ramsey Chapter 1- Spring 2019
Dave Ramsey Chapter 1- Spring 2019
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Personal Finance
Flashcards
35 cards
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Practice quiz
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Host live
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Questions
35
Answers
1
Decisions & activities an individual/family makes regarding their money, (spending, saving...)
Debt
Personal Finance
Consumer spending
Economy
2
When it comes to managing money, success is about ________% knowledge and ________%behavior.
60, 40
20, 80
50, 50
80, 20
3
The amount of money a person makes dictates their spending and saving behavior
True
False
4
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
budgeting
investing
financial literacy
saving
5
Learning the language of money is not important because you will be able to depend on others
Maybe
IDK
Absolutely
No way
6
Which of the following statements best describes how Americans are being outsmarted by banks?
Credit is marketed so well that we desire to have it
We are driven by consumerism.
We are taught that we can buy happiness.
Buying things on credit has become acceptable in our culture
7
One of the first things you should do when developing a financial plan is
assess your current financial situation
check current bank lending rates
talk to your financial advisor
open a savings account
8
Which of the following is a consequence of spending more than you make?
Missed opportunity to save and invest
Stress
All of these
A cycle of debt
9
The granting of a loan and the creation of a debt; any form of deferred payment
Annual Fee
none are correct
Credit
Bank Fee
10
New Deal Policymakers convinced commercial banks that
Consumer credit was not a profitable industry
Consumers would not be willing to use credit
They would not be able to compete with loan sharks
Consumer credit could be profitable
11
What you do now with money has not effect on your financial future, if you are a teenager.
True
False
12
Why was the use of credit uncommon prior to 1917?
All of these
Lending money to others was not profitable.
Borrowing money was generally not socially acceptable.
Laws prevented lenders from charging high interest rates.
13
A person or business that offers loans at extremely high interest rates
creditor
A bookie
Fifth Third Bank
loan shark
14
Having debt keeps you from building wealth.
IDK
No
Maybe
Yes
15
Key components of financial planning include all of the following except:
Write out a detailed plan for accomplishing your goals
Allow your financial planner to make all of your decisions
Regularly monitor and reassess your financial plan
Replace money myths with money truths
16
A fee paid by a borrower to the lender for the use of borrowed money
Service Fee
Credit
Bills
Interest
17
Period of temporary economic decline: fall in gross domestic product (GDP)
Cycle of Debt
Competition
Market Economy
Recession
18
Debt evidenced by a "note", indicating principal amount, interest rate, and repayment date
Creditor
Collateral
Loan
Bank Fee
19
Which of the following is not a factor in becoming money smart?
Learn how to read your credit card statements
Learn the language of money
Manage your behavior with money
Have knowledge of basic math
20
The widespread financial insecurity of Americans is primarily because:
Most Americans save a high proportion of their income
Savings rate of Americans is low and they spend more
The incomes of Americans are low
Gov. programs cannot help people when they are disabled
21
Personal financial success is primarily the result of:
Winning the lottery
Managing your money behavior
Generous welfare and unemployment programs
Inheriting money from your parents
22
Which best explains why students should learn about personal finance?
learning to manage $ will help you get a profitable career
personal finance skills-better learned through trial & error
eliminate financial mistakes and promote financial benefits
personal finance skills are highly complex
23
Expensive houses and new cars are a true indication of wealth.
Always
Glue
IDK
Not usually
24
Credit system today is structured to utilize high interest rates and fees to turn huge profits.
False
True
25
Knowing your money personality does not allow you to excuse excessive spending.
True
False
26
A budget that works for one person should be sufficient for everyone.
True
False
27
Which is not a reason credit is marketed heavily to consumers?
strong consumer demand for big-ticket items
credit industry has become extremely profitable
use of credit is not socially accepted in United States
none are correct
28
Which of the following statements best explains why income alone does not determine wealth?
Investing is the only factor that contributes to wealth
Only people who are natural savers can become wealthy.
The $ a person makes does not dictate her spending behavior.
Income alone does determine a personʹs wealth.
29
Most Americans today are wealthy and will have financial security when they retire.
Maybe
False
True
IDK
30
Person or organization that uses a product or service
Borrower
Merchandiser
Consumer
Retailer
31
Obligation of repayment owed by one party to a second party is
Ownership
Debt
Collateral
Interest
32
Which of the following is not a true statement?
As banks made profits, they lent more $ to consumers.
Credit industry in America has not changed much since 1917.
Americans learned to borrow amidst post-WWII prosperity.
After 1970, consumer debt skyrocketed.
33
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your______.
Friends
Bank account
Income
Behavior
34
System by which goods and services are produced and distributed
Distribution
Economy
Assets
Market
35
Most Americans avoid the use of credit when it comes to buying big-ticket items like a car.
False
Maybe
True
IDK
