What advice would this clown offer those just starting out?

Develop a plan, start early & live within your means

What do most financial consultants advise you to do first when managing your finances?

Establish a written plan (budget)

Why should you not sign a check and leave this laying around?

Since you signed it, if lost someone can write their own check from your $

Which statement best explains the value of a Tax-Deferred Investment?

Income gained is not taxed until withdrawal

When reading a stock market report, CLOSE refers to

The last trading price recorded at the end of a trading day

Which statement best describes the principle of diversification?

Spread investments over range of industries & inv. vehicles

This clip illustrates one concern or issue investors need to know.

Be aware of commissions and other fees that will eat away at your gains

Which option is best?

Both have advantages dependent upon the needs of consumer

The authors of this book clearly show a difference between ________ & ________

Earning a high income & building wealth

Keys to compounding interest in your investments is

start early (time) and re-invest earnings

Which statement best explains how the different Houghton General Store components were decided

After an assessment of community interests and needs

Best definition of Fixed Expenses

Consistent expenses that should be counted on each month

All of the following are reasons for establishing a written personal budget EXCEPT

To guarantee maximum investment returns

What does FDIC stand for?

Federal Deposit Insurance Corporation

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Personal Finance & Budgeting Review

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Questions 22

Answers

1
What advice would this clown offer those just starting out?
Invest in topsoil... this market is going to take off soon
Give me the money... I'll take care of it for you
Develop a plan, start early & live within your means
Stay home with parents... its a jungle out there
2
Dave Ramsey: Who am I?
Best selling author
A businessman
Radio talk show host
All the above
3
What do most financial consultants advise you to do first when managing your finances?
Invest 5% for long-term needs
Establish a written plan (budget)
Look at beginning a tax deferred investment account
Play the lottery
4
Who said: "An investment in knowledge pays the best interest."
Tupac
Kim Kardashian
Will Ferrell
Benjamin Franklin
5
Why should you not sign a check and leave this laying around?
Then you couldn't use #129
Since you signed it, if lost someone can write their own check from your $
I don't have an account with Breitmore
Too hard to read your name
6
Which statement best explains the value of a Tax-Deferred Investment?
Put of till tomorrow what you can do today is great advice
You won't have to pay taxes on gains
This provides a quick way to recover lost time
Income gained is not taxed until withdrawal
7
When reading a stock market report, CLOSE refers to
A friendly reminder... there are no guarantees in the market
The last trading price recorded at the end of every month
The total # of shares traded that day
The last trading price recorded at the end of a trading day
8
Average consumer debt in America
16,000 +
less than 9,000
3,000
7,500
9
Which statement best describes the principle of diversification?
Working with a variety of financial advisors
Spread investments over range of industries & inv. vehicles
Process by which a PEEP hardens when Emma loses it in car
Intentionally connecting w/ those who may help your career
10
This clip illustrates one concern or issue investors need to know.
Working with professional investment advisors will guarantee success
You gotta have some old guys managing your investments
Be aware of commissions and other fees that will eat away at your gains
Brokers are the same thing as bookies
11
Which option is best?
Lease
Are both equally beneficial
Buy
Both have advantages dependent upon the needs of consumer
12
The authors of this book clearly show a difference between ________ & ________
Dominoes & Papa Johns
Stocks & mutual funds
Earning a high income & building wealth
Checking accounts & savings accounts
13
Which of the following is the commonly accepted % recommended for housing expenses?
50% of net spendable income
10-12% of net spendable income
5-10% of net spendable income
25-35% of net spendable income
14
Generally speaking what % of net income should you consider applying to savings & investments?
5-10% of net spendable income
not necessary when young & just starting out
20-30% of net spendable income
50% of spendable income
15
Which of the following is widely considered one of the fundamentals of personal investing?
An in-depth & extensive understanding of financial markets
Know yourself and your needs
Always allot (budget) a % of income to playing the lottery
Marry an accountant or financier
16
Keys to compounding interest in your investments is
know when to hold them and know when to fold them
its the luck of the draw
start early (time) and re-invest earnings
know when to get in and when to get out
17
Which statement best explains how the different Houghton General Store components were decided
Lottery
After an assessment of community interests and needs
Mr. Retz dictated this based on personal preference
On the whims and interests of 1st semester Econ class
18
Which of the following is the safest (least risk of losing) place to keep less than $100,000.
Stock Market
Savings or checking account
Tax Deferred Investment Account
Piggy Bank
19
Since the crash of 1929, the most consistent & profitable way to invest your money
Commodities (OJ , Sugar Cane)
Stock Market
Piggy Bank
Savings account
20
Best definition of Fixed Expenses
Those expenses that are the same for everyone
Expenses that will not vary from year to year
Consistent expenses that should be counted on each month
Those related to costs associated w/ large items (eg. home)
21
All of the following are reasons for establishing a written personal budget EXCEPT
Benefits your long-range planning
To guarantee maximum investment returns
Ability to track both your income and expenses
Helps you to prioritize use of income
22
What does FDIC stand for?
Federal Doorknob Idiot Council
Fiscal Discretionary Investment Corporation
Federal Dietary Interest Council
Federal Deposit Insurance Corporation

Personal Finance & Budgeting Review Flashcards | StudBud