Dave Ramsey Chapter 1

Which of the following is not a factor in becoming money smart?

Since you are a teenager, what you do now with $ will have little effect on your fin future.

Which of the following statements best explains why income alone does not determine wealth?

Why was the use of credit uncommon prior to 1917?

Which of the following is not a reason credit is marketed heavily to consumers in the U.S.?

Period of temp economic decline-trade & industrial activity reduced-identified by a fall in GDP

Which best describes how Americans are being outsmarted by banks/lenders?

A fee paid by a borrower to the lender for the use of borrowed money.

Which of the following best explains why students should learn about personal finance?

Most Americans avoid the use of credit when it comes to buying big-ticket items like a car.

Which of the following is not a true statement?

A person or business that offers loans at extremely high interest rates

When it comes to personal finance, the math is easy. Whatʹs challenging is managing your _.

Decisions & activities of an individual/family regarding their money/spending/saving/budgeting

An obligation of repayment owed by one party to a second party

The granting of a loan and the creation of debt; any form of deferred payment

The knowledge and skillset necessary to be an informed consumer & manage finances effectively

Personal financial success is primarily the result of:

Debt evidenced by a ʺnote,ʺ which specifies the principal amt, int rate & date of repayment

A person or organization that uses a product or service

A system by which goods and services are produced and distributed

Key components of financial planning include all of the following except:

True financial security is achieved when your money starts working for you.

Which of the following is a consequence of spending more than you make?

Most Americans today are wealthy and will have financial security when they retire.