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Part 1 -- Be smart with your MONEY!. Flashcards | StudBud
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Part 1 -- Be smart with your MONEY!.
Part 1 -- Be smart with your MONEY!.
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1
What's the first Baby Step to Financial Peace?
Build wealth and give
$1000 in emergency fund
Pay off all debt
3-6 months worth of expenses in emergency fund
2
The person you should contact to begin investing in stocks
bus driver
banker
teacher
financial advisor
3
Which of the following is a long-term financial goal?
buying a cell phone
creating an emergency fund
taking a vacation
buying a house
4
A financial advisor will likely have a better understanding of ________ than you do.
people skills
goal-setting
tax laws
dangers posed by the Internet
5
Someone may choose to own a car instead of leasing because
maintenance costs for a leased car are higher
car can be resold later to make some money back
insurance costs for leasing are higher
car can be resold later for a higher price
6
Identity theft can happen to anyone regardless of your financial habits.
True
False
7
What is an important financial consideration when renting an apartment?
your income level & personal budget
swimming pool & laundry room
lease states that landlord return security deposit
landlord promises to fix what is broken
8
"Diversification" is the financial term used for _______________________________ .
an old wooden ship
Stop it. I don't want to grow up.
a community that has lots of different peeps
spreading money across different savings and investments
9
What are the cons of leasing?
Always have a car payment
All of the Above
Never own a car
Higher Insurance
10
Financial planning can be described as a way to
realize what it takes to get the things you really want
stop all impulsive purchases
achieve your professional goals
retire with a substantial amount of money in the bank
11
The first stage of investing is typically,
speculation
spending
put-and-take account
systematic investion
12
The use of long-term savings to earn a financial reward is called
lottery
gambling
speculating
investing
13
Investing in single stocks is
Not risky
Average risk
Very risky
Same risk as mutual funds
14
What is the relationship between risk and reward with regards to investing?
the lower the risk the higher the potential reward
the higher the risk the higher the potential reward
the lower the risk you more chance you could lose $
the higher the risk the safer your $
15
It is important to comparison shop when purchasing a car. What does comparison shop mean?
Compare the price & quality from different vendors
Always buy from a local dealership
Compare the true market value of every vehicle
Take several photos to use for comparison
16
If you have an understanding of personal financial planning you don't need a financial advisor.
False
True
17
When researching information online about cars, which website would be helpful?
All 3 websites
Consumerreports.org
Kelley Blue Book - kbb.com
Carfax.com
18
True or False, Investing is safer than saving.
True
False
19
Which of the following is NOT a financial goal?
enjoying your career
retiring at an early age
making charitable donations
establishing an emergency fund
20
10. Adolescents are putting an enormous financial strain on health systems.
True
False
21
Leasing a car is a lot like what?
Swimming
Stealing
Owning
Renting
22
True or False: Research is the second step to purchasing a car.
True
False
23
Which is true about new cars?
3-5 year warranty and no protection if car is recalled
Not safe for the environment
Have enhanced safety features
Lower cost
24
Which of the following is a risk to consider when investing?
Your money is not liquid
All of the above
Inflation
You could lose all your money
25
When making the decision to buy a cars what options should you look at?
Wants vs needs
all the above
Cost
Gas milage
26
To reduce the risk of purchasing a trouble-prone vehicle, identify cars with _____________.
new tires
front-wheel drive
good reliability record
front and side air bags
27
Component 1 of a financial plan is
Plan for your Financing
Manage Your Liquidity
Credit Management
Plan for your budgeting & taxes
28
The major difference between saving and investing is
Saving is for less than 3 years
Saving is for less than 1 year
Saving is for less than 5 years
Saving is for less than six months
29
The most important tenet in investing is
investing is for losers
wait until you're financially secure, then start investing
start early in life and invest consistently
investing is for old people
30
When is the best time to start saving for long-term financial goals?
when you are young and have fewer financial obligations
when you have a family of your own
when you are in your forties and earning more money
after you have finished college
31
What is a benefit of leasing a vehicle?
Lower payment each month
Unlimited mileage while you lease the vehicle
Easier to get if you have bad credit
You own the car at the end of the lease period
32
All of the following are advantages of leasing a vehicle EXCEPT
Standard maintenance is typically included
Your monthly payment is typically cheaper
You get a new vehicle more frequently
Your auto insurance is typically cheaper
33
Financial planning can affect the age at which you retire.
True
False
34
When investing money your money should be _________.
shared
diversified
all in
not at all
35
Component 2 of your financial plan is to
Manage your liquidity
None of these
Plan for your budgeting & taxes
Plan for managing your risk
36
Entrepreneurs do not need financial planning to be successful.
False
True
37
The primary objective of investing is to
reduce risk.
use funds not needed for liquidity to earn a high return.
use funds needed for liquidity to earn a high return.
avoid use of savings accounts.
38
What is Personal Financial Planning?
all of the financial issues involved in borrowing money
all of the financial issues that can affect an individual
the financial issues involved in spending within a budget
all of the financial issues involved in saving money
39
What are the pros of leasing?
Lower down payments
You get a higher credit score
Lower insurance costs
You will get "upside down"
40
You should be careful about evaluating financial planning advice from Web sites that
provide links to financial calculators
are trying to sell you a service
provide tips from a CFP
display employees' credentials
41
You may need to revise your financial plan if there is a change in your
voluntary servide on a local board or marital service
religious affiliation or family size
financial goals or voluntary service on a local board
life circumstances, marital status, or family size
42
Compliance in the finance industry involves financial institutions operating within
specific territories
organizational plans
regulatory guidelines
different relationships
43
Which is true about used cars?
More depreciation
Lower insurance costs
You have the knowledge of previous owners
None of the above
44
Which term allowed consumers to pay for their cars over an extended period?
assembly line
Installment Plan
stock market crash
purchasing power
45
The best time to start investing money to reach your financial goals is ________.
in your forties
in your twenties
in your thirties
now
46
A financial advisor's area of expertise should ________.
be narrow
be independent
be broad
match your needs
