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Financial Literacy Semester Final Review #finance #financialliteracy #semesterexam #financereview
Flashcards
72 cards
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Answers
1
You must establish credit in order to buy a house.
True
False
2
Occurs when money is withdrawn from a bank account and the available balance goes below 0
overdraft
reconcile
3
These may be free or low-cost; found online, at community colleges, through gov. funded program
associate's degree
certifications
4
The Fifth Foundation is Build Wealth and _______.
Give
Save
Stay out of debt
Keep it all for yourself
5
a system by which goods and services are produced and distributed
assets
economy
6
When developing a financial plan, you should assess your current financial situation.
False
True
7
Non-essential expenses.
intermittent
discretionary
8
When it comes to managing money, success is about ________% knowledge and ________% behavior.
80;20
50;50
60;40
20;80
9
A long-term rental agreement on a car; a form of secured long-term debt.
loan
lease
10
To match your bank statement with your checkbook.
cash flow plan
reconcile
11
Communication, teamwork, and consistency are all important elements in handling family finances
True
False
12
The average repayment period for a student loan is:
5 years
10 years
20 years
15 years
13
A four-year degree is necessary regardless of which career you're entering.
False
True
14
A debt evidenced by a "note," specifies the principal amount, interest rate, & date or repay
bank fee
loan
15
The number one cause of divorce in North America is stress & disagreements over money.
False
True
16
Feeling regret or concern after making a large purchase.
buyer's remorse
consumerism
17
A written budget, if followed, removes _______ from your finances.
all of the above
guilt
management by crisis
overspending
18
All of the decisions and activities of an individual or family regarding their money
Personal Finance
Currency
19
If you value security, you are more likely to:
make impulse buys
save money
all of the above
spend money
20
Why was the use of credit uncommon prior to 1917?
borrowing money was generally not socially acceptable
all of the above
law prevented lenders from charging high interest rates
lending money to others was not profitable
21
Which of the following is not a need?
Housing
Food
Utilities
Eating out
22
The purpose of insurance is for:
all of the above
transfer of financial risk
provide investment opportunity
develop a savings plan
23
Which of the following is not a reason credit is marketed heavily to consumers in the US?
The credit industry has become extremely profitable.
Credit laws are relaxed.
There is strong consumer demand for big-ticket items.
The use of credit is not socially accepted in the U.S.
24
Which of the following is a good investment option
futures
gold
viaticals
mutual funds
25
Money is not the only way to give
False
True
26
Allows students to learn basic professional skills in two years or less; typically cuts gen ed
trade school
self-education
27
A form that is completed annually by current & prospective college students determines fin aid
FOS
FAFSA
28
A card issued by a bank that allows users to finance a purchase.
credit card
debit card
29
Your monthly budget should include:
Fixed Expenses
Discretionary Expenses
Variable Expenses
All of the Above
30
Which of the following is NOT one of the Five Foundations?
Pay cash for your car
Build wealth and give
Build your credit
Save a $500 emergency fund
31
A form of financial aid that does not need to be repaid; awarded academic, athletic, other
grant
scholarship
32
When it comes to personal fin, the math is easy. What's challenging is managing your ________.
behavior
friends
income
bank account
33
You need to have a credit card to rent a car or check into a hotel.
True
False
34
Your own record of all your transactions
check register
account statement
35
A detailed report of an individual's credit history.
credit report
credit card statement
36
An amount of money you pay to help cover a portion of your medical costs.
annuity
co-payment
37
The five steps to financial success.
five money myths
Five Foundations
38
Expensive houses and new cars are true indication of wealth.
True
False
39
A ______ plan allows for employees to defer compensation on a before-tax basis for investment.
401k
403b
401b
403k
40
A period of temp economic decline during which trade and industrial activity are reduced
recession
depression
41
Which of the following is the most cost-effective option for purchasing a home?
30yr mortgage so u get the lowest possible payments.
Get a 30-year mortgage with a 20% down payment.
with 100% down; if that not option get no more than a 15yrs
Get a 15-year mortgage with a 5% down payment.
42
Which of the following statements
best
explains why income alone does not determine wealth?
Investing only factor that contributes to wealth building.
Only people who are natural savers can become wealthy.
Income alone does determine a person's wealth.
money does not dictate person spending & saving habits
43
An obligation of repayment owed by one party to a second party.
debt
ownership
44
A credit score is intended to measure:
your financial resources
your income level
the amount of money you have in the bank
risk of you not repaying debt
45
Life insurance policy for a specific period of time is called:
Term
Whole Life
Level
Universal
46
The knowledge and skill set necessary to be an informed consumer & manage finances effectively
financial literacy
personal finance
47
Percentage of Americans living paycheck to paycheck:
25
50
70
40
48
Early work experiences prior to your career job really have no benefit other than small income.
False
True
49
A written cash flow plan.
cash flow statement
budget
50
A decrease or loss in value.
inflation
depreciation
51
Everyone should have the same financial plan. One person's budget is sufficient for everyone.
False
True
52
What is paycheck garnishment?
not this one
A legal procedure debt problems of individuals & businesses
Process of taking something back for failure to make payment
court-order, lender takes monies owed directly frm paycheck
53
Groceries are a ______ expense.
fixed
variable
intermittent
discretionary
54
Car repairs are a ________ expense.
fixed
discretionary
intermittent
variable
55
Which of the following steps is the First Foundation?
Build wealth and give
Pay cash for college
Pay cash for car
Save a $500 emergency fund
56
Setting up automatic account transfers is the easiest way to build your savings for emerg. fund
False
True
57
When married couples do not share goals & values in how they manage money which can occur:
All of the Above
Stress
Conflict
Divorce
58
Most americans today are wealthy and will have financial security when they retire.
False
True
59
Discussing important financial matters with household members can reduce conflict.
True
False
60
Which of the following is a consequence of overdrawing your checking account?
Bounced check fee from the store
Overdraft fee from your bank
All of the above
Stress from money mismanagement
61
The amount of stuff a person has is directly related to contentment and happiness.
True
False
62
A spur-of-the-moment, unplanned decision to buy a product or service.
buyer's remorse
impulse buy
63
At your age, a fully funded emergency fund should be:
$400
$1000
$300
$500
64
A fee paid by a borrower to the lender for the use of borrowed money
interest
bills
65
Rent is a _______ expense.
variable
discretionary
fixed
intermittent
66
A form of federal or state financial aid that does not need to be repaid
Scholarship
Grant
67
Online bill pay allows you to make payments to whomever you wish w/o having to write a check
True
False
68
An amount of money you pay to help cover a portion of your medical costs.
deductible
co-payment
69
Learning the lang. of money is not important bc you can depend on others to manage your money
True
False
70
_________ is a tax-free transfer of cash or other property from one retirement plan to another.
Rollover
Annual
FICA
Overturn
71
Since you are a teenager, what you do now will have little effect on your financial future
False
True
72
Which of the following is
not
a credit myth?
Debt is a tool and should be used to create prosperity.
You have "arrived" financially once u get credit
Borrowing money can hv serious consequences & prevent wealth
The lottery and other forms of gambling will make you rich.
