Which of the following is not a credit myth?

Borrowing money can have consequences & keep you from wealth

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

A person's salary does not dictate his/her spending behavior

What type of expenses should your zero based budget include?

All of the expenses should be included

Which of the following is not one of the three basic reasons for saving money?

Have money available to lend to friends

Which of the following statements is false?

Your choices as a consumer have no impact

What is the difference between gross pay and net pay?

Net pay is your pay after deductions; gross pay is before

The widespread financial insecurity of Americans is primarily because:

Amercians savings is low, borrow & spend more than earned

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

Your financial planner will make all of your money decisions

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2017 Financial Literacy Semester Class Review #1 Ch. 1-4

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Questions 15

Answers

1
Which of the following is not a credit myth?
You have done well once you get approved for a credit card
Debt is a tool & should be used to create prosperity
The lottery & other forms of gambling will make your rich
Borrowing money can have consequences & keep you from wealth
2
Which of the following statements best explains why income alone does not determine wealth?
Only people who are natural savers can become wealthy.
Income alone does determine a person's wealth.
Investing is the only way to contribute to wealth building.
A person's salary does not dictate his/her spending behavior
3
Rent is a:
Fixed expense
Discretionary expense
Intermittent expense
Variable expense
4
Which of these is not a key to saving money?
Focus
Making saving a habit and a priority
Your income
Discipline
5
The idea of "money spent here, can not be spent there" is
compound interest
time value of money
Opportunity costs
diminishing return
6
What type of expenses should your zero based budget include?
Intermittent expenses
All of the expenses should be included
Variable Expenses
Fixed expenses
7
Which of the following is not one of the three basic reasons for saving money?
Large purchases
Have money available to lend to friends
Emergency fund
Build wealth
8
Doing a budget does not:
Make your money go further
Show if your are overspending in an area
Make overspending more likely
Remove guilt and shame sometimes associated with a purchase
9
Amount of money today has different buying power than the same amount of money in the future.
Time value of money
Interest rate
Opportunity cost
Inflation
10
When a payment has been made to a charge account, the amount paid should be:
Mulitplied by the amount owed
Divided by the amount owed
Subtracted by the amount owed
Added to the amount owed
11
Which of the following statements is false?
wise consumers also enjoy improved health
Using cost-benefit analysis will make you a wise consumer
Being a wise consumer involves developinga variety of skills
Your choices as a consumer have no impact
12
What is the difference between gross pay and net pay?
Gross and net pay are the same
None of the above
Gross pay is your pay after deductions; net pay is before
Net pay is your pay after deductions; gross pay is before
13
Personal financial success is primarily the result of
Generous welfare and unemployment programs
Winning the lottery
Managing your money behavior
Inheriting money from your parents
14
The widespread financial insecurity of Americans is primarily because:
Amercians savings is low, borrow & spend more than earned
Most Americans save a high proportion of their income
The incomes of Americansare low
Programs are unavailable to people when they are unemployed
15
Key components of financial planning includes all of the following except:
Write out a detailed plan for accomplishing your goals
Replace money myths with money truths
Regularly monitor and reassess your financial plan.
Your financial planner will make all of your money decisions

2017 Financial Literacy Semester Class Review #1 Ch. 1-4 Flashcards | StudBud