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Dave Ramsey, Chapter 1 Intro to Personal Finance Flashcards | StudBud
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Dave Ramsey, Chapter 1 Intro to Personal Finance
Dave Ramsey, Chapter 1 Intro to Personal Finance
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Chapter 1 test - Review #daveramsey
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
One of the 1st things you should do is assess your income, assets and liabilities.
True
False
2
The widespread financial insecurity of Americans is primarily because:
Americans spend more than they earn.
Most Americans save a high proportion of their income
The incomes of Americans are low
The government doesn't help people enough.
3
What is an obligation of repayment owed by one party to a second party?
Ownership
Debt
4
Having debt keeps you from building:
Debt
Wealth
Mortgage
Grades
5
Why was the use of credit uncommon prior to 1917?
Borrowing money was generally not socially acceptable.
Laws prevented lenders from charging high interest rates.
Lending money to others was not profitable.
All of the above.
6
A system by which goods and services are produced and distributed.
Economy
Assets
7
A period of temporary economic decline during which trade and industrial activity are reduced.
Market Economy
Recession
8
Which of the following is
NOT
a factor in becoming money smart?
Have knowledge of basic math
Manage your behavior with money
Learn how to read your credit card statements
Learn the language of money
9
Which of the following statements best explains why income alone does not determine wealth?
Income alone does determine a personʹs wealth.
How much money you make does not decide how much you save.
Investing is the only factor that contributes to wealth.
Only people who are natural savers can become wealthy.
10
Who is a person or organization that uses a product or service?
Borrower
Consumer
11
Since you are a teen, what you do now with money will have no effect on your financial future.
False
True
12
Expensive houses and new cars are a true indication of wealth.
True
False
13
Most Americans today are wealthy and will have financial security when they retire.
False
True
14
Which of the following is a consequence of spending more than you make?
Stress
All of the above.
Missed opportunity to save and invest
A cycle of debt
15
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your
Bank Account
Behavior
Friends
Income
16
Personal financial success is primarily the result of:
Winning the lottery
Inheriting money from your parents
Managing your money behavior
Generous welfare and unemployment programs
17
Who is a person or business that offers loans at extremely high interest rates?
Loan Shark
Creditor
18
A fee paid by a borrower to the lender for the use of borrowed money is called:
Savings
Roth IRA
Interest
Mortgage
19
True financial security is achieved when your money begins to generate an income.
True
False
20
A person or organization that uses or buys a product or service is a:
Economy
Producer
Banker
Consumer
21
Which of the following is
NOT
a true statement?
After 1970, consumer debt skyrocketed.
The credit industry in USA has not changed much since 1917.
Banks loaned more when they could make a profit.
Americans learned to borrow amidst post-WWII prosperity.
22
Which of the following is
NOT
a reason credit is marketed heavily to consumers in the US.
Loaning money is profitable.
Credit/debt is not socially accepted in the United States.
The credit industry has become extremely profitable.
There is strong consumer demand for big-ticket items.
23
A debt evidenced by a "note," which specifies principal, interest rate, & date of repayment.
Bank Fee
Loan
24
Most Americans avoid the use of credit when it comes to buying big-ticket items like a car
False
True
25
Everyone should have the same plan. A budget that works for one person should work for everyone
False
True
26
What is the BIGGEST reason that debt is bad?
It takes away money that could be used to build wealth.
You get more stuff.
You pay interest.
People laugh at you.
27
What is a fee paid by a borrower to the lender for the use of borrowed money?
Interest
Bills
28
The widespread financial insecurity of Americans is primarily because:
We spend more than we make.
Incomes are too low.
We save too much.
The government doesn't help enough.
29
All the decisions and activities of an individual or family regarding their money.
Currency
Personal Finance
30
Having the knowledge to be an informed consumer and manage finances effectively.
Budgeting
Financial Literacy
31
What is the granting of a loan and the creation of debt?
Annual Fee
Credit
32
Key components of financial planning include all of the following
except
:
Write out a detailed plan for accomplishing your goals
Hire someone to make all your money decisions.
Regularly monitor and reassess your financial plan
Replace money myths with money truths
33
When it comes to managing money, success is about ________% knowledge and ________% behavior.
80/20
15%
20/80
8%
