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

The Student Loan Marketing Association (SLMA)

Franklin D. Roosevelt passed the New Deal due to the Great Depression in the 30s. What was the purpose of the program?

To promote economic recovery and social reform

What does living paycheck to paycheck mean?

income is devoted to exp. which means they have little/no money for saving

What are the five foundations?

A personal financial action plan

What is the best way to avoid running out of money too quickly?

You can make it a habit to plan and set goals for your money.

Savers have a tendency to be . . .

Strict with their money and not spend any of it

To gain an understanding of your personal finances, you should know ...

how much income, goals, and how to reach those goals

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

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

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?

knowledge&skill base necessaryto be informed consumers&manage finances

As a single adult, you should . . .

Keep managing your money as a priority

After WW I,the demand for products increased, & people began getting credit without loan sharks.Because of this,credit

started to become more socially acceptable

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Money Matters Ch. 1

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Questions 30

Answers

1
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 Approval Association (SLAA)
The Student Federal Funding Association (SFFA)
The Student Loan Marketing Association (SLMA)
2
You are either only a natural saver or a natural spender. You cannot have a balance of both.
True
False
3
Franklin D. Roosevelt passed the New Deal due to the Great Depression in the 30s. What was the purpose of the program?
To alleviate financial concerns with the United Nations
To divide the national budget in half and distribute it
To promote economic recovery and social reform
To create a borrowing system within the country
4
If your assets total more than your liabilities, you will have a(n) ___ net worth.
positive
unknown
negative
equal
5
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False
True
6
Personal finance is all the financial decisions a(n) ___ must make in order to earn, budget, save, spend and give money
company or organization
individual or company
individual or family
bank
7
Without any debt, you can be outrageously ____.
cautious
thrifty
selfish
generous
8
What does living paycheck to paycheck mean?
situation when someone eagerly awaits their paycheck to plan for expenses
person chooses to not dep. their p.check, they're living p.check-p.check.
income is devoted to exp. which means they have little/no money for saving
cant plan past next p.check bc of financial&budgeting from outside sit.
9
Being a spender has many more positives than being a saver.
True
False
10
It is possible to pay for college with cash.
True
False
11
Personal finance is 20% _____ and 80% _____.
Behavior; head knowledge
Head knowledge; behavior
Cause; effect
Reactions; behaviors
12
What are the five foundations?
A starting point for adults regarding finances
A common conclusion for debt
A personal financial action plan
A financial literacy technique
13
What is the First Foundation?
Build wealth and give
Open a checking account
Pay cash for college
Save $500 emergency fund
14
What is the best way to avoid running out of money too quickly?
You can put your money in a safe place, like a bank, and not spend it.
You can make it a habit to plan and set goals for your money.
You can invest in college
You can avoid making any purchases for the next 30 days.
15
Savers have a tendency to be . . .
Strict with their money and not spend any of it
Strict with only purchases for themselves
Strict with their purchases but spend money without a plan
Strict with what they spend their money on, other than groceries
16
You should always make sure you have a
direct deposit
credit line
credit card
budget
17
To gain an understanding of your personal finances, you should know ...
your investment portfolio and your financial advisors' contact info.
how much income you have
how much income, goals, and how to reach those goals
you financial goals
18
When you set financial goals, they should be . . .
Specific, measurable, time-sensitive, yours, and written
Only time-sensitive
Timely, bank-based, specific, and yours
Specific and measurable
19
To know your net worth, subtract your liabilities from your ______.
net income
assets
previous net worth
other liabilities
20
Making the right choices with your money-managing your money-involves knowing how....
consumer decisions will affect your accounts
make bank deposits using registers with the appropriate transactions listed
planning,saving,spending & investing will define your financial portfolio
earning,budgeting,saving,spending and giving affect your money
21
Using credit has not always been a socially accepted practice, but it has become . . .
less acceptable
Necessary for life in America
normal in American culture
a practice used by the wealthy
22
An important money principle to consider is that you should ___ and ___ your money.
invest; endow
invest; layout
spend; invest
save; invest
23
What is financial literacy?
The curriculum provided to college students about finances for their degree
knowledge&skill base necessaryto be informed consumers&manage finances
The skills to read financial documents for personal finance classes, goals
. The content provided in bank statements for consumers
24
A money principle to keep in mind is to live on _____ you make.
more than
the same as
less than
exactly 20% below what
25
Your money personality impacts . . .
Your financial literacy level
Your understanding of bank transactions
What you plan for as an adult
How you handle money
26
As a single adult, you should . . .
Seek a financial counselor or advisor by age 25
Beware of planned and budgeted buying
Have an accountability partner you trust somewhat
Keep managing your money as a priority
27
Avoiding debt can lead to financial freedom and hope.
False
True
28
After WW I,the demand for products increased, & people began getting credit without loan sharks.Because of this,credit
was devalued in the marketplace
was offered at even higher interest rates by loan sharks
increased so rapidly, loan sharks become obsolete
started to become more socially acceptable
29
A ____ financial goal takes up to two years to reach
long term
short term
medium term
second level
30
What is the Fifth Foundation?
Pay cash for car
Get out and stay out of debt
Pay cash for college
Build wealth and give

Money Matters Ch. 1 Flashcards | StudBud