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Chapter 1 Review - Ramsey Classroom Flashcards | StudBud
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Chapter 1 Review - Ramsey Classroom
Chapter 1 Review - Ramsey Classroom
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Chapter 1 Review for Post Test in Ramsey Classroom
Flashcards
24 cards
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Practice quiz
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Host live
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Questions
24
Answers
1
What is The First Foundation?
Open a checking account
Pay cash for college
Save a $500 emergency fund
Build wealth and give
2
You are either only a natural saver or a natural spender. You cannot have a balance of both.
False
True
3
What is the purpose of the Five Foundations?
for banking information
to spend all your money
to make sure you have money for friends
framework for financial success
4
To know your net worth, subtract your liabilities from your
Net Income
Assets
Previous net worth
Other liabilities
5
Personal Finance is all about... (choose best response)
Investments
Managing Money Decisions
Getting Rich
Not spending
6
Personal Finance is ....
80% behavior & 20% knowledge
Making it rain.
Letting people see you wop.
50% behavior & 50% knowledge
7
A money principle to keep in mind is to live on _____ you make.
less than
more than
Exactly 20% below what
the same as
8
Being a spender has many more positives than being a saver
True
False
9
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal
False
True
10
Using credit has not always been a socially accepted practice, but it has become ...
A practice used by the wealthy
Normal in American culture
Necessary for life in America
Less acceptable
11
Making the right choices with your money-managing your money-involves knowing how.......
To make bank deposits using registers with the appropriate transactions
Earning, budgeting, saving, spending, and giving affect you money
Consumer decisions will affect your accounts
Planning, saving, spending,& investing will define your financial portfolio
12
What is Personal Financial Planning?
all of the financial issues involved in borrowing money
all of the financial issues involved in saving money
all of the financial issues that can affect an individual
the financial issues involved in spending within a budget
13
What is the best way to avoid running out of money too quickly?
invest in college
make it a habit to plan and set goals for your money
Avoid making any purchases for the next 30 days
put your money in a safe place, like a bank and dont spend it
14
List the 2nd of the Five Foundations.
Build wealth and give.
Pay cash for a car
Pay cash for college
Get out of debt
15
Name the 3rd of the Five Foundations.
Save $500 for emergency fund.
Pay cash for college.
Build wealth and give.
Pay cash for a car.
16
Name the 4th of the Five Foundations.
Pay cash for a car
Pay cash for college.
$500 emergency fund.
Build wealth and give.
17
The percentage of Americans who are living paycheck to paycheck is almost ...
80%
60%
90%
70%
18
Savers have a tendency to be...
Strict with their money and not spend any of it
Strict with purchases but spend money without a plan
Strict with what they spend except for groceries
Strict with purchases for only themselves
19
Almost half of all Americans report having less than _____________in savings.
$1000
$5,000
$10,000
$500
20
Personal financial success is primarily the result of:
Generous welfare and unemployment programs
Inheriting money
Winning the lottery
Managing your money behavior
21
You should always make sure you have a
Budget
Credit Card
Direct deposit
Credit line
22
To gain an understanding of your personal finances you should know
Your financial goals
Where you stand financially, how much income you have, and your goals
Your investment portfolio and your financial advisor's contact information
How much you have
23
What is financial Literacy?
money reading
basic financial knowledge
That class taught by Jones & Hutch
boring....
24
It is possible to pay for college with cash
False
True
