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Ch.1 Introduction to Personal Finance Flashcards | StudBud
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Ch.1 Introduction to Personal Finance
Ch.1 Introduction to Personal Finance
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Introduction to Personal Finance Test Review Game
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
In 1972, what association made borrowing money to attend college much easier than it had been?
The Student Loan Marketing Association(SLMA)
The Federal Student Approval Association(FSAA)
The Student Loan Approval Association(SLAA
The Student Federal Funding Association(SFFA)
2
Which of the following is not a benefit of understanding your own money personality?
Recognizing who you are allows you the opportunity to grow.
None of the above.
Knowing your $ personality allows you to think about $ habit
You can make a budget once you know your $ personality
3
The knowledge and skills necessary to be an informed consumer and manage finances effectively__
financial literacy
budgeting
4
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.
How much $ a person makes doesn't control their $ behavior.
Investing is the only factor that helps build wealth.
5
A system by which goods and services are produced and distributed
economy
assets
6
Which of the following best explains why students should learn about personal finance?
Personal finance skills require a lot of time to learn.
Finance skills are better learned through trial and error.
Learning to handle money can help get rid of financial issue
Learning to manage money will lead to a profitable career.
7
Key components of financial planning include all of the following except:
Regularly monitor and reassess your financial plan
Replace money myths with money truths
Allow your financial planner to make all your money decision
Write out a detailed plan for accomplishing your goals
8
An obligation of repayment owed by one party to a second party is called a
ownership
debt
9
When it comes to managing money, success is about ___% knowledge and ___% behavior.
60,40
50, 50
20,80
80,20
10
Which of the following choices best describes how Americans are being outsmarted by banks?
Buying things on credit has become acceptable in our culture
We are taught that we can buy happiness.
We are driven by consumerism.
Credit is marketed so well that we desire to have it.
11
Learning the language of money is not that important because you can rely on financial planners
True
False
12
The granting of a loan and the creation of debt; any form of deferred payment is
credit
annual fee
13
Which of the following is not a reason credit is marketed heavily to U.S. Consumers?
The use of credit is not socially accepted in the US.
There is strong consumer demand for big-ticket items.
The credit industry has become extremely profitable.
Since 1920, credit laws in the US have been relaxed
14
Having debt keeps you from building wealth.
True
False
15
Everyone should have the same financial plan. The same budget should work for everyone.
True
False
16
Expensive houses and new cars are a true indication of wealth.
True
False
17
Most Americans avoid the use of credit when it comes to buying big-ticket items like a car.
False
True
18
Which of the following is not a true statement?
As banks made more $, they were willing to lend more $.
America's credit industry has not changed much since 1917
After 1970, consumer debt skyrocketed.
Americans learned to borrow amidst post-WWII prosperity.
19
The widespread financial insecurity of Americans is primarily because:
Government programs are unavailable to help disabled people
The saving rate of Americans is low and their debt is high
Most Americans save a high proportion of their income
The incomes of Americans are low
20
Decisions of an individual or family regarding their $ including spending, saving, budgeting is
currency
personal finance
21
Which of the following is not a factor in becoming money smart?
Have knowledge of basic math
Learn the language of money
Learn how to read your credit card statements.
Manage your behavior with money
22
True financial security is achieved when your money begins to generate an income.
True
False
23
Which of the following is a consequence of spending more than you make?
A cycle of debt
All of the above
Stress
Missed opportunity to save and invest.
24
Why was the use of credit uncommon prior to 1917?
All of the above.
Borrowing money was generally not socially acceptable.
Lending money to to others was not profitable.
Laws prevented lenders from charging high interest rates.
25
Personal Financial success is primarily the result of:
Generous welfare and unemployment programs
Inheriting money from your parents
Managing your money behavior
Winning the lottery
26
Most Americans today are wealthy and will have financial security when they retire.
True
False
27
Since you are a teenager, what you do now with $ will have little effect on your future.
True
False
28
The credit system today uses high interest rates and fees to turn huge profits.
True
False
29
A person or organization that buys a product or service is a
consumer
borrower
30
When it comes to personal finance, the math is easy. Whats challenging is managing your ___.
Bank account
Income
Behavior
Friends
31
When developing a personal financial plan you should look at your assets, and liabilities.
False
True
32
A fee paid by a borrower to the lender for the use of borrowed money
interest
bills
33
A person or business that offers loans at extremely high interest rates is a
loan shark
creditor
