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