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Money Matters Chapter 1 Review 2023 Flashcards | StudBud
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Money Matters Chapter 1 Review 2023
Money Matters Chapter 1 Review 2023
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2023 Review for Test
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
What is The Fifth Foundation?
Pay cash for your car
Get out and stay out of debt
Build wealth and give.
Find a financial professional
2
An important money principle to consider is that you should ___________ and ___________ your money.
Save; invest
Invest; endow
Spend; invest
Invest; lay out
3
Franklin D. Roosevelt passed the New Deal because of the Great Depression in 1930s. What was the purpose of this program
To promote economic recovery and social reform
To divide the national budget in half and distribute it
To alleviate financial concerns with the United Nations
To create a borrowing system within the country
4
What is financial literacy?
The content provided in bank statements for consumers
Curriculum provided to college students about finances for their degrees
Knowledge and skills for people to be informed and manage their finances
Skills to read financial documents for personal finance classes, goals
5
You should always make sure you have a…
Direct Deposit
Credit Card
Credit Line
Budget
6
What is the best way to avoid running out of money too quickly?
You can make it a habit to plan and set goals for your money.
You can put your money in a safe place, like a bank, and not spend it.
You can invest in college.
You can avoid making any purchases for the next 30 days.
7
Making the right choices with your money—managing your money—involves knowing how . . .
Consumer decisions will affect your accounts
To make bank deposits using registers with appropriate transactions listed
Planning, saving, spending, investing will define your financial portfolio
Earning, budgeting, saving, spending, and giving affect your money
8
When you set financial goals, they should be . . .
Only time-sensitive
Specific and measurable
Specific, measurable, time-sensitive, yours, and written
Timely, bank-based, specific, and yours
9
A ______________ financial goal takes up to two years to reach.
Medium-term
Long-term
Five-level
Short-term
10
To gain an understanding of your personal finances, you should know . . .
Where you stand financially, how muchincome, goals to set and reach
Your financial goals
. How much income you have
Your investment portfolio and your financial advisors’ contact information
11
Avoiding debt can lead to financial freedom and hope.
False
True
12
Without any debt, you can be outrageously
Cautious
Selfish
Thrifty
Generous
13
In 1972, what association made borrowing money to attend college much easier than it had been?
The Student Federal Funding Association (SFFA)
The Student Loan Marketing Association (SLMA)
The Federal Student Approval Association (FSAA)
The Student Loan Approval Association (SLAA)
14
Being a spender has many more positives than being a saver
False
True
15
What does living paycheck to paycheck mean?
When someone awaits their next paycheck to plan forthe month’s expenses.
Person cannot plan past the next paycheck due to budgeting difficulties
When a person chooses to not deposit their paycheck
Person’s income devoted to expenseswhich means little/no mone in savings
16
A money principle to keep in mind is to live on ________ you make
Less than
The same as
More than
Exactly 20% below what
17
Personal finance is 20% ________ and 80% ___________.
Reactions; behaviors
Cause; effect
Head knowledge; behavior
Behavior; head knowledge
18
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
True
False
19
Your money personality impacts . . .
How you handle money
Your financial literacy level
Your understanding of bank transactions
What you plan for as an adult
20
If your assets total more than your liabilities, you will have a(n) ____________ net worth.
Negative
Unknown
Positive
Equal
21
What are The Five Foundations?
A financial literacy technique
A starting point for adults regarding finances
A personal financial action plan
.A common conclusion for debt
22
Using credit has not always been a socially accepted practice, but it has become . . .
Necessary for life in America
Less acceptable
A practice used by the wealthy
Normal in American culture
23
It is possible to pay for college with cash.
False
True
24
Savers have a tendency to be . . .
Strict with their money and not spend any of it
Strict with only purchases for themselves
Strict with their purchases but spend money without a plan
Strict with what they spend their money on, other than groceries
25
Personal finance is all the decisions one must make in order to earn, budget, save, spend, and give money over time.
. Bank
Individual or company
Individual or family
Company or organization
26
You are either only a natural saver or a natural spender. You cannot have a balance of both.
False
True
27
As a single adult, you should . . .
Beware of planned and budgeted buying
Keep managing your money as a priority
Have an accountability partner you trust somewhat
Seek a financial counselor or advisor by age 25
28
To know your net worth, subtract your liabilities from your .
Net income
Previous net worth
Other liabilities
Assets
29
What is The First Foundation?
Open a checking account.
Save a $500 emergency fund.
Pay cash for college
Build wealth and give
30
After World War I, demand for products increased, people began getting credit w/o loan sharks. Because of this, credit…
Started to become more socially acceptable
Was devalued in the marketplace
Increased so rapidly, loan sharks became obsolete
Was offered at even higher interest rates by loan sharks
