The widespread financial insecurity of Americans is primarily because:

Americans don't save and many spend more than they earn

Which of the following best explains why students should learn about personal finance?

Learning to manage money can eliminate common mistakes

Which of the following statements best explains why income alone does not determine wealth?

Income doesn't dictate spending and saving behavior.

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Foundations Chapter 1

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A review of Chapter 1: Introduction to Personal Finance from Foundations in Personal Finance by Dave Ramsey

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Questions 12

Answers

1
The knowledge/skill set necessary to be an informed consumer and manage finances effectively
budgeting
bills
interest
financial literacy
2
Personal financial success is primarily the result of
Inheriting money from your parents
Winning the lottery
Managing your money behavior
Generous welfare and unemployment programs
3
The widespread financial insecurity of Americans is primarily because:
Americans don't save and many spend more than they earn
Most Americans save a high proportion of their income
The incomes of Americans are low
Government programs are unavailable (ex: disability)
4
A person or organization that uses a product or service
Loan shark
borrower
consumer
creditor
5
An obligation of repayment owed by one party to a second party
consumer
debt
borrower
ownership
6
Expensive houses and new cars are a true indication of wealth.
True
False
7
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your ____ .
Behavior
Friends
Income
Bank account
8
Which of the following is a consequence of spending more than you make?
All of the above
Missed opportunity to save and invest
A cycle of debt
Stress
9
Having debt keeps you from building wealth.
True
False
10
Which of the following best explains why students should learn about personal finance?
Personal finance is highly complex and only for smart people
Learning to manage money will help you get a profitable job
Learning to manage money can eliminate common mistakes
Personal finance is better through trial and error
11
Which of the following statements best explains why income alone does not determine wealth?
Income alone does determine a personʹs wealth.
Only people who are natural savers can become wealthy.
Income doesn't dictate spending and saving behavior.
Investing is the only thing that promotes wealth building.
12
When it comes to managing money, success is about___% knowledge and___% behavior.
60, 40
20, 80
80, 20
50, 50

Foundations Chapter 1 Flashcards | StudBud