Intro to Personal Finance

Question 1

A person or business that offers loans at extremely high interest rates

Accepted Answer

Loan shark

Question 2

Since you are a teenager, what you do now with money will have little effect on your financial future.

Accepted Answer

False

Question 3

A system by which goods and services are produced and distributed

Accepted Answer

Economy

Question 4

Which of the following is not a factor in becoming money smart?

Accepted Answer

Learn how to read your credit card statements

Question 5

The knowledge and skillset necessary to be an informed consumer and manage finances effectively

Accepted Answer

Financial literacy

Question 6

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

Accepted Answer

How much money a person makes doesn't dictate spending & saving behavior

Question 7

During the Great Depression, New Deal policymakers came up with mortgage & consumer lending policies convincing banks

Accepted Answer

Consumer credit could be profitable

Question 8

All the decisions & activities of an individual or family regarding their money, including spending, saving, budgeting

Accepted Answer

Personal Finance

Question 9

Which of the following is not a benefit of understanding your own money personality?

Accepted Answer

Knowing your money personality allows you to excuse excessive spending.

Question 10

Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home.

Accepted Answer

False

Question 11

An obligation of repayment owed by one party to a second party

Accepted Answer

Debt

Question 12

Having debt keeps you from building wealth.

Accepted Answer

True

Question 13

True financial security is achieved when your money begins to generate an income—your money starts working for you.

Accepted Answer

True

Question 14

The granting of a loan and the creation of debt; any form of deferred payment

Accepted Answer

Credit

Question 15

When it comes to personal finance, the math is easy. Whatʹs challenging is managing your ___________.

Accepted Answer

Behavior

Question 16

Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.

Accepted Answer

False

Question 17

A debt evidenced by a ʺnote,ʺ which specifies the principal amount, interest rate and date of repayment

Accepted Answer

Loan

Question 18

Why was the use of credit uncommon prior to 1917?

Accepted Answer

All of the above

Question 19

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

Accepted Answer

Learning to manage money early can eliminate $ mistakes and earn benefits

Question 20

The credit system today is structured to accommodate uncertain employment & income instability, utilizing high interest.

Accepted Answer

True

Question 21

A person or organization that uses a product or service

Accepted Answer

Consumer

Question 22

The widespread financial insecurity of Americans is primarily because:

Accepted Answer

The saving rate of Americans is low and many borrow in order to spend more

Question 23

A period of temporary economic decline during which trade & industrial activity are reduced; identified by a fall in GPA

Accepted Answer

Recession

Question 24

Expensive houses and new cars are a true indication of wealth.

Accepted Answer

False

Question 25

When developing a personal financial plan, 1st, assess your current financial situation: income, assets, & liabilities.

Accepted Answer

True

Question 26

Personal financial success is primarily the result of:

Accepted Answer

Managing your money behavior

Question 27

Which of the following statements best describes how Americans are being outsmarted by banks and other lenders?

Accepted Answer

Credit is marketed so well we desire it while it destroys our well-being.

Question 28

When it comes to managing money, success is about ____% knowledge and ____% behavior.

Accepted Answer

20, 80

Question 29

Which of the following is not a true statement?

Accepted Answer

The credit industry in America has not changed much since 1917.

Question 30

A fee paid by a borrower to the lender for the use of borrowed money.

Accepted Answer

Interest

Question 31

Which of the following is a consequence of spending more than you make?

Accepted Answer

All of the above

Question 32

Learning the language of money is not that important because you will be able to depend on financial planners to manage

Accepted Answer

False

Question 33

Key components of financial planning include all of the following except:

Accepted Answer

Allow your financial planner to make all of your major money decision

Question 34

Which of the following is not a reason credit is marketed heavily to consumers in the United States?

Accepted Answer

The use of credit is not socially accepted in the United States.

Question 35

Most Americans today are wealthy and will have financial security when they retire.

Accepted Answer

False

Intro to Personal Finance

Questions 35

Intro to Personal Finance

Questions 35