How much should you aim to save in your emergency fund?

enough to cover 3 to 6 months living expenses

What is financial literacy defined as?

The act of spending money wisely

Why is financial literacy considered important?

individuals make informed and effective decisions with financial resources

What is the main purpose of envelope budgeting?

keep track of where money is spent

What are some ways to become financially literate?

Exposing yourself to new ideas from various sources like books and videos

What is a financial institution

company for saving, lending, investing, and insuring customers' money

What does the term "opportunity cost" refer to?

cost of missing out on the option you did not choose

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Financial Mgt quiz1

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Questions 12

Answers

1
Which of the following are sources of income.
your side hustle
take home pay
tips from your wait job
all of the above
2
Which of the following is NOT considered a true emergency?
a video game
a car breakdown
home repair
a medical bill
3
What is defined as a necessity that you need to survive?
food
A toy
video game
smartphone
4
How much should you aim to save in your emergency fund?
no fixed amount
enough to cover 3 to 6 months living expenses
a fixed amount of $10, 000
enough to cover one month of living expenses
5
When facing financial decisions, what is a suggested method to help make choices?
flip a coin
ask a friend
make a list of pros and cons
ignore the decision
6
What is financial literacy defined as?
The ability to save money
The act of spending money wisely
The understanding of stock investments
The possession of skills and knowledge to make informed financial decisions
7
Why is financial literacy considered important?
It helps in making friends
individuals make informed and effective decisions with financial resources
It is only useful for business owners
It guarantees wealth
8
What is the main purpose of envelope budgeting?
To save money for emergencies
invest in stocks
travel more
keep track of where money is spent
9
What are some ways to become financially literate?
Exposing yourself to new ideas from various sources like books and videos
Relying solely on school education
Only listening to financial podcasts
Ignoring financial topics
10
What is an emergency fund primarily used for?
going on vacation
buying new clothes
paying monthly bill
covering unexpected expenses
11
What is a financial institution
A company that owns a theme park
A company that sells tee shirts with logos
company that makes and sells digital art
company for saving, lending, investing, and insuring customers' money
12
What does the term "opportunity cost" refer to?
cost of financial literacy
cost of living
cost of missing out on the option you did not choose
cost of goods sold

Financial Mgt quiz1 Flashcards | StudBud