Chapter 1: Introduction to Personal Finance

Question 1

The knowledge/skill set necessary to be an informed consumer and manage finances effectively

Accepted Answer

financial literacy

Question 2

Which of the following is not a true statement?

Accepted Answer

America's credit industry hasn't changed much since 1917.

Question 3

Which best describes how Americans are being outsmarted by banks and other lenders?

Accepted Answer

Credit is marketed very well

Question 4

Key components of financial planning include all of the following except

Accepted Answer

Allow your financial planner to make all of your decisions

Question 5

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

Accepted Answer

Income doesn't dictate spending and saving behavior.

Question 6

A person or organization that uses a product or service

Accepted Answer

consumer

Question 7

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

Accepted Answer

interest

Question 8

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

Accepted Answer

False

Question 9

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

Accepted Answer

All of the above

Question 10

Having debt keeps you from building wealth.

Accepted Answer

True

Question 11

A debt evidenced by a note, which says the principal amount, interest rate and repayment date

Accepted Answer

loan

Question 12

When it comes to personal finance, the math is easy. Whatʹs challenging is managing your ____ .

Accepted Answer

Behavior

Question 13

When it comes to managing money, success is about___% knowledge and___% behavior.

Accepted Answer

20, 80

Question 14

Expensive houses and new cars are a true indication of wealth.

Accepted Answer

False

Question 15

A system by which goods and services are produced and distributed

Accepted Answer

economy

Question 16

Everyone should have the same budget if it works for one person should work for everyone.

Accepted Answer

False

Question 17

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

Accepted Answer

Learn how to read your credit card statements

Question 18

Learning the language of money is unimportant because you can depend on financial planners

Accepted Answer

False

Question 19

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

Accepted Answer

credit

Question 20

Since you are a teenager, what you do now with money will have no effect on your future.

Accepted Answer

False

Question 21

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

Accepted Answer

debt

Question 22

Which of the following best explains why students should learn about personal finance?

Accepted Answer

Learning to manage money can eliminate common mistakes

Question 23

The widespread financial insecurity of Americans is primarily because:

Accepted Answer

Americans don't save and many spend more than they earn

Question 24

Which is not a reason credit is marketed heavily to consumers in the United States?

Accepted Answer

Credit is not socially accepted in the United States.

Question 25

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

Accepted Answer

If you're a spender you can spend because its an instinct

Question 26

During the Great Depression, peeps made loan and lending policies that convinced banks that:

Accepted Answer

Consumer credit could be profitable

Question 27

A person or business that offers loans at extremely high interest rates

Accepted Answer

Loan shark

Question 28

Financial security happens when your money begins to generate an income

Accepted Answer

True

Question 29

Most avoid the use of credit when it comes to buying big -ticket items like a car or furniture

Accepted Answer

False

Question 30

Why was the use of credit uncommon prior to 1917?

Accepted Answer

All of the above

Question 31

Personal financial success is primarily the result of

Accepted Answer

Managing your money behavior

Chapter 1: Introduction to Personal Finance

Questions 31

Chapter 1: Introduction to Personal Finance

Questions 31