The zero-based budget is the best method of budgeting because...

It ensures that every dollar is assigned to a purpose

Which is NOT a "power over purchase" tactic?

Compare your purchase with a friend's

Which is NOT a way to budget when you have an irregular income?

Budget the same way you do with a regular income

Why should interest earned not be a factor with your emergency fund?

The emergency fund is not intended to grow wealth

When a company places an ad and offers no interest on your purchases for 3 years...

The cost of financing is built into the price of the item

Which of the following is false....

a budget summarizes the past saving and spending

Which of the following is something a typical millionaire would do?

spend less money than he or she makes

Which is NOT a reason to keep your emergency fund separate account from your spending money?

so your emergency fund can gain a lot of interest

Which of the following is NOT a common marketing strategy?

Making the customer do product research

making more money and discipline

Four common marketing tactics are...

Personal selling, financing, repetition, product positioning

Which is NOT a record-keeping feature you could expect from your bank?

Customer Service reconciles your account for you

Which of the following is NOT a step in the Drive Free method of purchasing a car?

Explore new car dealerships for the best interest rates

studbud

Financial Literacy

24 termsStudBud Administration99 plays

Personal Finance Post Test

Flashcards24 cardsFPractice quizPHost liveL

Questions 24

Answers

1
When you are spending more than you make and acquiring debt.
Positive Savings Rate
Wealth Building
Portion Control
Negative Savings Rate
2
Which concepts is explained by "Money spent here cannot be spent there"?
Super Savings Law
Sinking Fund
Bankruptcy Law
Opportunity Cost
3
The zero-based budget is the best method of budgeting because...
It ensures that every dollar is assigned to a purpose
It's not the best
It allows you to spend your money on fun stuff first
It will get you a promotion at work
4
Which is NOT a "power over purchase" tactic?
Consider the opportunity cost
Wait overnight
Seek counsel
Compare your purchase with a friend's
5
Which is NOT a way to budget when you have an irregular income?
Make a list of all of your expenses for the month ahead
Once paid, spend the money all the way down your list
Budget the same way you do with a regular income
Prioritize the list in order of importance
6
When an amount of money today has different buying power in the future. Caused by inflation.
Time Value of Money
Opportunity Cost
Interest Rate
Inflation
7
Why should interest earned not be a factor with your emergency fund?
The emergency fund is not intended to grow wealth
Interest isn't real
Emergency funds are not needed
Interest should be the main factor
8
A court-order that allows a lender to take monies directly from the borrowers paycheck
Paycheck garnishment
This is illegal
Payback plan
Money laundering
9
When a company places an ad and offers no interest on your purchases for 3 years...
they are willing to lose money to save you some
they pay the interest to help you out
this is the best way to make purchases
The cost of financing is built into the price of the item
10
Which of the following is false....
cash flow statement is what has already taken place
a budget is a written plan for saving and spending
cash flow statement summarizes income and outgoing money
a budget summarizes the past saving and spending
11
Which of the following is something a typical millionaire would do?
spend less money than he or she makes
Lease a new car
carry debt
replace things that are not broken
12
What is a safe assumption to make regarding companies and their marketing practices?
Companies use all angles to compete for your money
Companies spend millions of $ and do research on advertising
Companies know the competition is fierce
All of the above
13
Which is NOT a reason to keep your emergency fund separate account from your spending money?
so it's clear what money is for emergencies
so you don't get your spending and savings confused
so that it's not to easy to access
so your emergency fund can gain a lot of interest
14
Which of the following is NOT a common marketing strategy?
Making the customer do product research
Repetition
Personal selling
Providing financing options
15
Savings is about....
contentment and emotion
contentment and earning more money
pride and greed
making more money and discipline
16
What factors affect a credit score?
New debt
All of the above
Duration of Debt
Type of debt
17
Four common marketing tactics are...
they have no tactics
Spend, spend more, cute dogs, garbage pics
Personal selling, financing, repetition, product positioning
Repetition, buyer's remorse, spend, spend more
18
Which is NOT a record-keeping feature you could expect from your bank?
A monthly account statement
A reconciliation sheet
An account register
Customer Service reconciles your account for you
19
Which of the following is NOT a factor in determining a FICO score?
Taking out a mortgage on a house
Getting a personal loan from a bank
Paying cash for all purposes
Using credit cards
20
With sinking fund approach, how much do you have to save a month to buy a $4,800 car in a year
$300
$400
$275
$500
21
Your monthly budget should include...
Fixed Expenses
All of the above
Variable Expenses
Discretionary Expenses
22
Which of the following is NOT a step in the Drive Free method of purchasing a car?
Plan your purchase in advance using the sinking fund method
Get an inexpensive car and gradually move up in value
Put savings in a mutual fund to make money with your money
Explore new car dealerships for the best interest rates
23
If you do not have a FICO score, what factors will determine if you qualify for a mortgage?
History of rental and utility payments
Amount of your down payment and employment history
Both of these are factors
24
Chapter 7 bankruptcy stays on your credit report for....
20 years
1 year
10 years
5 years

Financial Literacy Flashcards | StudBud