True financial security is achieved when your money begins to generate an income - your money starts working for you.
What is True
100
When it comes to managing money, success is about _____% knowledge and _______% behavior.
What is 20/80
100
The ________ _________ was the legislative and administrative program of President F.D. Roosevelt designed to promote economic recovery and social reform during the 1930s.
What is the New Deal.
100
When it comes to personal finance, the math is easy. What's challenging is managing your _________.
What is behavior.
100
Which of the following is a consequence of spending more than you make?
a) Missed opportunity to save and invest
b) Stress
c) A cycle of debt
d) All of the above
What is d) All of the above
200
The credit system today is structured to accommodate a state of uncertain employment and income instability, utilizing high interest rates and fees to turn huge profits.
What is true.
200
All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. Choose one: personal finance or currency.
What is personal finance.
200
A period of economic decline during which trade and industrial activity are reduced; generally identified by a fall in gross domestic product (GDP). Choose one: market economy or recession.
What is recession.
200
Key components of financial planning include all of the following except:
a) Write out a detailed plan for accomplishing your goals
b) Replace money myths with money truths
c) Allow your financial planner to make all of your major money decisions
d) Regularly monitor and reassess your financial plan
What is c) Allow your financial planner to make all of your major money decisions
200
Which of the following best explains why students should learn about personal finance?
a) Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.
b) Personal finance skills are better learned through trial and error.
c) Personal finance skills are highly complex and require a great deal of time to learn.
d) Learning to manage money will help you achieve a profitable career.
What is a) Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.
300
Most Americans today are wealthy and will have financial security when they retire.
What is False
300
The widespread financial insecurity of Americans is primarily because:
a) the incomes of Americans are low
b) the saving rate of Americans is low and many borrow in order to spend more than they earn
c) Gov't programs are unavailable to help people when they are disabled or experience unemployment
d) Most Americans save a high proportion of their income.
What is b) the saving rate of Americans is low and many borrow in order to spend more than they earn.
300
Which of the following is not a true statement?
a) Americans learned to borrow amidst post -WWII prosperity.
b) The credit industry in America has not changed much since 1917.
c) After 1970, consumer debt skyrocketed.
d) As banks made higher profits, they were willing to lend more money to consumers.
What is b) The credit industry in America has not changed much since 1917.
300
Which of the following is not a factor in becoming money smart?
a) Have knowledge of basic math
b) Learn the language of money
c) Manage your behavior with money
d) Learn how to read your credit card statements.
) What is d) Learn how to read your credit card statements.
300
Which of the following is not a benefit of understanding your own money personality?
a) Recognizing who you are allows you the opportunity to grown and learn.
b) Once you know your money personality, you can develop a financial plan that works for you.
c) Knowing your money personality allows you to excuse excessive spending because it is simply part of your nature.
d) None of the above
What is c) knowing your money personality allows you to excuse excessive spending because it is simply part of your nature.
400
Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone
What is false.
400
Which of the following is not a reason credit is marketed heavily to consumers in the U.S?
a) The credit industry has become extremely profitable.
b) There is strong consumer demand for big-ticket items.
c) Since 1920, credit laws in the U.S. have been relaxed.
d) The use of credit is not socially accepted in the U.S.
What is d) the use of credit is not socially accepted in the U.S.
400
Why was the use of credit uncommon prior to 1917?
a) Laws prevented lenders from charging high interest rate.
b) borrowing money was generally not socially acceptable.
c) Lending money to others was not profitable.
d) All of the above.
What is d) all of the above.
400
Personal financial success is primarily the result of:
a) Managing your money behavior
b) Winning the lottery
c) Generous welfare and unemployment programs
d) Inheriting money from your parents
What is a) Managing your money behavior
400
Which of the following statements best explains why income alone does not determine wealth?
a) Investing is the only factor that contributes to wealth building.
b) Income alone does determine a person's wealth.
c) Only people who are natural savers can become wealthy
d) How much money a person makes does not dictate his or her spending and saving behavior.
What is d) How much money a person makes does not dictate his or her spending and saving behavior.
500
When developing a personal financial plan, one of the first things you should do is assess your current financial situation. This includes your income, assets and liabilities.
What is true.
500
Which of the following best describes how Americans are being outsmarted by banks and other lenders?
a) Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being
b) We are taught that we can buy happiness.
c) Buying things on credit has become acceptable in our culture.
d) We are driven by consumerism.
What is a) Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being
500
During the Great Depression, New Deal policymakers came up with mortgage and consumer lending policies that convinced commercial banks that:
a) Consumers would not be willing to use credit, since borrowing money for large purchases had not previously been an option for the middle class.
b) They would not be able to compete with loan sharks in the industry of consumer lending.
c) Consumer credit could be profitable.
d) Consumer credit was not a profitable industry.
What is c) Consumer credit could be profitable.
500
A system by which goods and services are produced and distributed. Choose one: assets or economy.
What is economy.
500
The granting of a loan and the creation of debt; any form of deferred payment. Choose one: credit or annual fee.