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Dave Ramsey- Chapter 1 Flashcards | StudBud
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Dave Ramsey- Chapter 1
Dave Ramsey- Chapter 1
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Chapter 1- Introduction to Personal Finance
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Which of the following BEST describes how Americans are being outsmarted by banks?
we are driven by consumerism
we are taught that we can buy happiness
credit is marketed so well that we so well that we want it
buying things on credit has become acceptable in our culture
2
Which of the following statements BEST explains why income alone does not determine wealth?
Investing is the one factor that helps wealth building
Only people who are natural savers can become wealthy
Amount made doesn't change spending or saving behavior
Income alone does determine a persons wealth
3
Which of the following is a consequence of spending more than you make?
A cycle of debt
All of the answers shown
Stress
Missed opportunity to save and invest
4
The knowledge and skills necessary to be an informed consumer and manage finances
Financial Literacy
Budgeting
5
Americans generally avoid the use of credit to buy big-ticket items like a car or furniture
true
false
6
Which of the following is NOT a benefit of understanding your own money personality?
When you know your money personality you can develop a plan
knowing your money personality allows you to spend a lot
none of the above
Seeing who you are allows you to grow and learn
7
A period of temporary economic decline
Recession
Market Economy
8
The granting of a loan and the creation of debt.
Annual fee
Credit
9
Most Americans today are wealthy and will have financial security when they retire.
True
False
10
An obligation of repayment owed by one party to another.
Ownership
Debt
11
Which of the following is NOT a factor in becoming money smart?
Have knowledge of basic math
Manage your behavior with money
Learn how to read your credit card statements
Learn the language of money
12
Personal financial success is primarily the result of
generous welfare and unemployment programs
managing your money behavior
inheriting money from your parents
winning the lottery
13
When it comes to personal finance, the math is easy. What is challenging is managing your ____.
Bank Account
Income
Friends
Behavior
14
Which of the following is NOT a true statement?
Americas credit industry's haven't changed much since 1917
Americans learned to borrow amidst post-WW2 prosperity
After 1917, consumer debt skyrocketed
Banks made higher profits, so they would lend more money
15
A fee paid by a borrower to the lender for the use of borrowed money.
Interest
Bills
16
Having debt keeps you from building wealth
False
True
17
Why was the use of credit uncommon prior to 1917?
borrowing money was generally not socially acceptable
laws prevented lenders from charging high interest rates
all of the above
lending money to others was not profitable
18
Key components of financial planning include all of the following EXCEPT:
Replace money myths with money truths
Allow a financial planner to make all your money decisions
Write out a detailed plan for accomplishing goals
19
Which of the following BEST explains why students should learn about personal finance?
Learning to manage money can eliminate financial mistakes.
Learning to manage money helps you have a profitable career
Personal finance skills are better learned through trial
Personal finance skills are complex so require time to learn
20
A system by which goods and services are produced and distributed.
Assets
Economy
21
what you do with money now will have little effect on your financial future
true
false
22
Financial security is achieved when your money begins to generate money.
True
False
23
expensive houses and new cars are a true indication of wealth
false
true
24
Everyone should have the same financial plan.
True
False
25
A person or organization that uses a product or service
Consumer
Borrower
