Foundations in Personal Finance - Chapter 3

Question 1

A description of where your money was spent over the course of a period of time.

Accepted Answer

Cash Flow Statement

Question 2

Setting up automatic account transfers is an easy way to build savings for large purchases.

Accepted Answer

True

Question 3

Which of the following statements are true about a zero-based budget?

Accepted Answer

Income and expenses are the same

Question 4

Which of the following statements is false?

Accepted Answer

A budget summarizes what has already happened.

Question 5

Which of the following account records should have the most current balance?

Accepted Answer

Your own account register

Question 6

The number one cause of divorce in the US is stress and disagreements over money.

Accepted Answer

True

Question 7

Having more than one bank account is not a good idea because it complicates money management.

Accepted Answer

False

Question 8

What is it called when you write a check and the funds to cover it are not in your account?

Accepted Answer

Overdraft

Question 9

Which of the following is NOT a record-keeping feature you could expect from your bank?

Accepted Answer

Customer service reconciles your account for you

Question 10

Which type of expense is your car insurance?

Accepted Answer

Fixed

Question 11

For which of the following is your checking account NOT the appropriate place to keep money?

Accepted Answer

Emergency Fund

Question 12

The typical millionaire does NOT do which of the following.

Accepted Answer

Impulse buy

Question 13

Which of the following would be considered a discretionary expense?

Accepted Answer

Premium Cable

Question 14

The envelope system would be helpful for budgeting for which of the following?

Accepted Answer

Meals in restaurants

Question 15

A written plan telling your money where to go.

Accepted Answer

Budget

Questions 15