Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930's. What was the purpose?

To promot economic recovery and social reform

As a single adult, you should....

Keep managing your money as a priority.

To gain an understanding of your personal finances you should know

Where you stand financially, how much income you have, and your goals

Savers have a tendency to be....

Strict with their money, and not spend any of it.

In 1972, what association made borrowing money to attend college much easier than it had been?

The Student Loan Marketing Association(SLMA)

After World War I, the demand for products increased, and people began getting credit without loan sharks, so credit…

Started to become more socially acceptable

When you set financial goals, they should be...

Specific, measurable, time-sensitive, yours, and written.

What does living paycheck to paycheck mean?

When a person's income is devoted to expenses and nothing in savings.

Making the right choices with your money--managing your money--involves knowing how...

Earning, budgeting,saving,spending, and giving affect your money.

What is financial literacy?

The knowledge and skill base to be an informed consumer & manage finances.

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Dave Ramsey Chapter 1 Introduction to Personal Finance

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Questions 29

Answers

1
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930's. What was the purpose?
To divide the national budget in half and distribute it.
To alleviate financial concersn with the United Nations.
To promot economic recovery and social reform
To create a borrowing system within the country
2
Your money personality impacts...
What you plan for as an adult.
Your understanding of bank transactions.
How you handle your money
Your financial litercy level
3
Personal finance is 20%__________ and 80%_________.
Head knowledge; behavior
Reactions; behaviors
Behavior; head knowledge
Cause, effect
4
As a single adult, you should....
Keep managing your money as a priority.
Have an accountability partner you trust somewhat.
Seek a financial counselor or advisor by age of 25.
Beware of planned and budged buying
5
If your assests total more than your liabilities, you will have a(an) _____ networth.
Positive
Unkown
Negative
Equal
6
What is the Third Foundation
Pay cash for your car
Get out of Debt
Build Wealth and Give
Save a $500 emergency fund
7
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False
True
8
To gain an understanding of your personal finances you should know
Your financial goals
Your investment portfolio and your financial advisor's contact information
How much income you have
Where you stand financially, how much income you have, and your goals
9
What is the second foundation to personal finance?
Pay cash for college
Save a $500 for an emergency fund
Get out of debt
Pay cash for your car
10
You should always have a __________.
budget
Credit line
Direct deposit
Credit card
11
What is the fourth foundation?
Pay cash for a car
Save a $500 emergency fund
Get out of debt and stay out of debt
Pay cash for college
12
Savers have a tendency to be....
Strict with only purchases for themselves.
Strict with their purchases but spend money without a plan.
Strict with their money, and not spend any of it.
Strict with what they spend their money on, other than groceries.
13
What is the Five foundations?
What you plan for as an adult.
How you handle money.
A financial literacy technique.
Yourr finacial literacy level.
14
In 1972, what association made borrowing money to attend college much easier than it had been?
The Federal Student Approval Association(FSAA)
The Student Loan Marketing Association(SLMA)
The Student Loan Approval Association(SLAA)
The Student Federal Funding Association.(SFFA)
15
It is not possible to pay cash for college.
True
False
16
A money principle to keep in mind is to live ____________on you make.
The same as
Exactly 20% below what
Less than
More than
17
What is the fifth foundation?
Build wealth and give.
Pay cash for a car
Find a financial professional.
Get out of debt
18
You can either only be a natural saver or a natural spender. You can be both.
False
True
19
Avoiding debt can lead to financial freedom and hope.
False
True
20
After World War I, the demand for products increased, and people began getting credit without loan sharks, so credit…
Increased so rapidly, loan sharks became obsolete
Started to become more socially acceptable
Was devalued in the marketplace
Was offered at even higher interest rates by loan sharks
21
When you set financial goals, they should be...
Only time-sensitve
Specific, measurable, time-sensitive, yours, and written.
Timely, bank-based, specific, and yours
Specific and measurable.
22
An important money principle to consider is that you should ______ and _______ your money.
Invest; lay out
Spend; Invest
Save; Invest
Invest; endow
23
What does living paycheck to paycheck mean?
When a person's income is devoted to expenses and nothing in savings.
Describes a situation when someone eagerly awaits their next paycheck.
When a person chooses to not deposit their paycheck.
When a person cannot plan past the next paycheck due to financial problems.
24
A ________ financial goal takes up to two years to reach.
Medium-goal
Long-term goal
Short-term goal
Five level goal
25
Without any debt, you can be outrageously ____________.
Generous
Cautious
Selfish
Thrifty
26
Using credit has not always been a socially accepted practice, but it has because....
Normal in American culture.
Less acceptable
A practice used by the wealthy.
Necessary for the life in America
27
Making the right choices with your money--managing your money--involves knowing how...
Earning, budgeting,saving,spending, and giving affect your money.
Planning, saving,spending,andinvesting will define your financial portfolio
Consumer decisions will affect your accounts.
To make bank deposits using registers with the appropriate transactions.
28
What is financial literacy?
The skills to read financial documents for classes, goals, and statements.
The knowledge and skill base to be an informed consumer & manage finances.
The content provided in bank statements for consumers.
The curriculum provided for college students about finances.
29
What is the first foundation?
Save a $500 emergency fund.
Pay cash for college
Build wealth and give
Open a checking account

Dave Ramsey Chapter 1 Introduction to Personal Finance Flashcards | StudBud