Money Matters Midterm

Question 1

_________ ____________ creates a mathematical explosion because it pays interest on top of int.

Accepted Answer

Compound Interest

Question 2

Which one best explains why student should learn about Personal Finance.

Accepted Answer

Learning to manage money will help prevent future mistakes

Question 3

When a person intentionally invests money in a place where it can earn more money

Accepted Answer

Wealth Building

Question 4

The purpose of an Emergency Fund is to set aside money for Large purchases.

Accepted Answer

False

Question 5

Most Americans avoid the use of credit cards when it comes to buying big purchase items.

Accepted Answer

False

Question 6

The purpose of an Emergency Fund is to set aside money for unexpected Life expenses.

Accepted Answer

True

Question 7

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

Accepted Answer

Interest

Question 8

As a teenager, what you do with your money has little effect on your future.

Accepted Answer

False

Question 9

Which of the following is NOT a benefit of understand your Money personality?

Accepted Answer

Knowing your Personality allows you to make excuses

Question 10

An obligation of repayment owed by one party to another party

Accepted Answer

Debt

Question 11

The Credit system today is structured to accommodate income instability with high interest rate

Accepted Answer

True

Question 12

All of the decisions and activities of an individual regarding money, spending, saving, budgets

Accepted Answer

Personal Finance

Question 13

Having debt keeps you from building wealth.

Accepted Answer

True

Question 14

Key components of financial planning include all of the following except:

Accepted Answer

Allow a financial planner make all of you major decisions

Question 15

The Second Foundation to Financial Freedom

Accepted Answer

Get rid of Debt!!!

Question 16

Personal finance success is primarily the result of:

Accepted Answer

Managing your money behavior

Question 17

Money today has a different buying power than money in the future

Accepted Answer

Time Value of Money

Question 18

The knowledge and the skill set to be informed and manage finances effectively.

Accepted Answer

Financial Literacy

Question 19

You should assess your current financial situation when developing a financial plan

Accepted Answer

True

Question 20

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

Accepted Answer

Society has completely dismissed that debt is destroying us.

Question 21

Which of the following is NOT a true statement?

Accepted Answer

The Credit industry has not changed since 1917

Question 22

Americans have a high savings rate.

Accepted Answer

False

Question 23

Which statement best explains why income alone does not determine wealth?

Accepted Answer

A person's spending and saving behavior is the main factor

Question 24

Success in managing money is ___% knowledge and ___% behavior.

Accepted Answer

20, 80

Question 25

What is the most challenging part of personal finance?

Accepted Answer

Behavior

Question 26

The widespread financial insecurity of America is primarily because:

Accepted Answer

The savings rate is too low

Question 27

As long as you have a good paying job you do not really need an Emergency Fund.

Accepted Answer

False

Question 28

Learning the language of money is not that important because you can depend on a planner.

Accepted Answer

False

Question 29

An automated transfer of money from your checking account to another account

Accepted Answer

Pre-Authorized checking withdrawals

Question 30

Interest paid on Interest earned

Accepted Answer

Compound Interest

Question 31

A fee paid by a borrower to the lender; it is calculated as a percentage of the principal.

Accepted Answer

Interest

Question 32

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

Accepted Answer

All of the Above

Question 33

Everyone should have the same financial plan. All budgets are basically the same.

Accepted Answer

False

Question 34

Your income level has a great impact on your saving habits.

Accepted Answer

False

Question 35

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

Accepted Answer

Learn how to read a Credit Card statement

Question 36

The Fifth and final Foundation to Financial Freedom?

Accepted Answer

Wealth Building

Question 37

What is the First Foundation to Financial Freedom?

Accepted Answer

Set up an Emergency Fund

Question 38

Why was the use of credit before 1917 uncommon?

Accepted Answer

All of the Above

Question 39

A system by which goods and services are produced and distributed.

Accepted Answer

Economy

Question 40

A person or organization that uses a product or service.

Accepted Answer

Consumer

Question 41

How much should an Emergency Fund be for someone your age?

Accepted Answer

$500

Question 42

True financial security is achieved when your money begins to generate an income.

Accepted Answer

True

Question 43

Spending more money than income earned.

Accepted Answer

Negative Savings Rate

Question 44

What is the 1st step to Saving

Accepted Answer

Emergency Fund

Question 45

Expensive homes and cars is a great indicator of your current wealth.

Accepted Answer

False

Question 46

Why do some people not Save money?

Accepted Answer

All of the Above

Question 47

Most Americans today are wealthy and will retire financially secure.

Accepted Answer

False

Question 48

A debt evidenced by a "note".

Accepted Answer

Loan, Loan, Loan

Question 49

Money set aside for a "rainy day"

Accepted Answer

Emergency Fund

Money Matters Midterm

Questions 49

Money Matters Midterm

Questions 49