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Foundations in Personal Finance Chapter 1 Flashcards | StudBud
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Foundations in Personal Finance Chapter 1
Foundations in Personal Finance Chapter 1
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Answers
1
the knowledge and skills necessary to be an informed consumer and manage finances effectively
book smarts
financial literacy
street smarts
financial vocabulary
2
Which of the following is NOT a benefit of understanding your own money personality?
None of the above.
Recognizing who you are allows you to grow and learn .
you can develop a financial plan that works foryou.
you can excuse excessive spending because it is part of you.
3
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
4
a system by which goods and services are produced and distributed
economy
government
warehouse
business
5
Most Americans today are wealthy and will have financial security when they retire.
false
true
6
Having debt keeps you from building wealth.
false
true
7
all decisions and activities of a person or family regarding their $ (spending, saving, etc)
consumerism
financial literacy
budget
personal finance
8
When it comes to managing money, success is about ________% knowledge and ________%behavior.
50, 50
80, 20
20, 80
60, 40
9
The credit system today accommodates instability, using high interest rates and fees for profit
true
false
10
Expensive houses and new cars are a true indication of wealth.
false
true
11
Which of the following best explains why students should learn about personal finance?
finance skills are better learned through trial and error
Learning to manage money helps you have a profitable career
can eliminate financial mistakes and promote future benefits
Personal finance skills require time to learn
12
What are some of the mistakes Americans often make when it comes to money?
using debt as a tool instead of saving and paying cash
not keeping a written monthly budget
all of the above
not having an emergency fund
13
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
knowledge of basic math
14
Understanding your personal strengths and weaknesses when it comes to money will
help you manage your spending
help you manage your saving behavior
A and B
neither A nor B
15
how can marketing affect your decisions when it comes to spending money
We are bombarded with marketing ads pushing us to buy stuff
A and B
neither
Marketing also encourages us to ʺbuy now and pay later
16
What percentage of Americans are living paycheck to paycheck?
70
30
50
2
17
what money personality knows there is more to life than money?
pragmatic
money isn't everything
frustrated
role models
18
Learning the language of money is not important because you can depend on financial planners
False
True
19
Most Americans avoid using credit when buying big-ticket items (car, furniture, home)
false
true
20
True financial security is achieved when your money begins to generate an income-
false
true
21
Which of the following is a consequence of spending more than you make?
Stress
A cycle of debt
All of the above
Missed opportunity to save and invest
22
person or organization that uses a product or service
worker
consumer
buyer
human
23
A debt evidenced by a "note" specifying principle amount, interest rate, and date of repayment
loan
debt
I.O.U.
credit
24
Everyone should have the same financial plan. A budget that works for one will be good for all
true
false
25
Which of the following statements best explains why income alone does not determine wealth
The $ you make does not dictate spending/saving behavior
Investing is the only factor that contributes to wealth
Income alone does determine a personʹs wealth
Only people who are natural savers can become wealthy
26
learning the language of money includes deciding where ur $$ is going after you get ur paycheck
true
false
27
The widespread financial insecurity of Americans is primarily because:
The saving rate of Americans is low
The incomes of Americans are low
A and C
Many Americans borrow in order to spend more than they earn
28
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your...
Income
Bank account
Friends
Behavior
29
Since you are a teenager, what you do now with money will have little effect on your future.
false
true
