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Foundations of Personal Finance Chapter 3 Review Flashcards | StudBud
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Foundations of Personal Finance Chapter 3 Review
Foundations of Personal Finance Chapter 3 Review
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Test preparation for Chapter 3 from Dave Ramsey
Flashcards
41 cards
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Practice quiz
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Questions
41
Answers
1
A cash flow plan that assigns an expense to every dollar
Envelope system
Overdraft
Zero-based budget
Budget
2
Expenses that remain the same from month to month
Discretionary Expense
Variable Expense
Intermittent Expense
Fixed Expense
3
Personal budget may be affected by the following:
Forgetting to include an item
Lack of discipline
All of the above
Not writing a budget
4
Online bill pay allows you to make payments without having to write a check or send it in mail
True
False
5
A debit card cannot be used for online purchases
False
True
6
Your personal record of all of your bank transactions.
budget
cash flow plan
check register
impulse purchase
7
How is the 20% head knowledge and 80% behavior related to the budget?
You must have discipline to follow your budget.
You can do it without a budget.
The budget should be done only by one person in the family.
The budget must be complicated to be good.
8
Budgeting is crucial to your financial success
True
False
9
Percentage of Americans living paycheck to paycheck
40
25
50
70
10
Which of the following statements is false.
A budget is meant to summarizes the past spending and saving
A cash flow statement summarizes all income and outgo.
A budget is a written plan for savings and spending.
The cash flow statement is what has already taken place
11
Dave Ramsey says personal finance is 80% head knowledge and 20% behavior.
False
True
12
A written budget, if followed, removes __________ from your finances.
Overspending
Guilt
Money Mismanagement
All of the above
13
How much money do Americans spend on average for every dollar they make?
$1.00
$1.33
.75
.50
14
Writing and following a zero-based budget will help you avoid overspending & impulse purchases.
True
False
15
Your monthly budget should include
Discretionary expenses
Variable expenses
All of the above
Fixed expenses
16
Expenses that remain the same from month to month.
Intermittent Expense
Discretionary Expense
Fixed Expense
Variable Expense
17
Doing a budget does NOT
Make overspending more likely
Make your money go further
Show if you are overspending in an area
Remove guilt and shame associated with a purchase
18
Occurs when money is withdrawn from a bank account and the available balance goes below zero.
Budget
Reconcile
Overdraft
Carbon Check
19
What are the consequences of over drafting your checking account?
All of the Above
Overdraft Fee from the bank
Bounded check fee from a store
Stress from mismanaging money
20
Which of the following is various payment option that could be used in your checking account
ATM withdraw of cash
All the above
Debit Card Payment
Automatic online bill pay
21
If you write a zero-based budget every month, it is not necessary to reconcile your account.
True
False
22
Series of envelopes divided into categories & used to store cash for planned monthly expenses
Envelope system
Zero-based budget
Budget
Overdraft
23
A summary of all the income and outgo over a certain time period..
Intermittent Expense
Variable Expense
Cash Flow Statement
Budget
24
Eating out is a
Intermittent Expense
Discretionary Expense
Fixed Expense
Variable Expense
25
Item that is bought without previous planning
Impulse Purchase
Carbon Check
Overdraft
Cash Flow Plan
26
To match your bank account with your checkbook
Budget
Overdraft
Reconcile
Cash Flow Plan
27
The envelope system works great for spending on things that have variable expenses.
True
False
28
The number one cause of divorce in America today is stress and disagreements over money.
False
True
29
Cash flow plan
Reconcile
Envelope system
Overdraft
Budget
30
Guidelines for budgeting with an irregular income includes..
When your check comes in, spend your money down on the list
All the answers
Make a list of all your expenses for the month ahead
Prioritize the list in order of important
31
Automatically transfer to your savings for your emergency fund or large purchases is easy.
True
False
32
Which of the following is not a record-keeping feature you could expect from your bank?
A monthly account statement.
Customer service reconciles your account for you monthly.
A reconciliation sheet.
An account register.
33
Entertainment is a
Variable Expense
Fixed Expense
Discretionary Expense
Intermittent Expense
34
Non-essential expenses...
Discretionary Expense
Intermittent Expense
Fixed Expense
Variable Expense
35
Having more than one bank account is a bad idea because it complicates money management
True
False
36
The Zero-based budget is the best method of budgeting because...
It ensures every dollar you make has a specific purpose.
This type of budget is less complicated than others.
Sticking to a zero-based budget requires less discipline.
A zero-based budget allows less money for wants.
37
Which of the following account records would have the most current balance?
All of these records will have the accurate account balance.
Your monthly bank statement.
Account balance statement from the ATM.
Your own account register.
38
"Pay yourself first" means you should save and invest every month.
True
False
39
Groceries are a
Fixed Expense
Discretionary Expense
Intermittent Expense
Variable Expense
40
Car repairs are a
Discretionary Expense
None of the Above
Variable Expense
Fixed Expense
41
Rent is a
Discretionary expense
Fixed expense
Intermittent expense
Variable expense
