Personal Finance Chapter 1 & 2

Front

Learning the language of money is not that important because you will be able to depend on financial planners to manage your money. True or False?

Back

False

Front

Which of the following is NOT a reason credit is marketed so heavily to consumers in the United States? Options: There is strong demand for big ticket items., Credit industry has become extremely profitable., The use of credit is not socially acceptable in the US, After WWI, credit laws were relaxed in an attempt to create a mainstream alternative to loan sharks for the working class.

Back

The use of credit is not socially acceptable in the US

Front

Americans typically maintain a very high savings rate.

Back

False

Front

Which of the following statements best describes how Americans are being outsmarted by banks and other lenders? 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. We are taught that we can buy happiness. Buying things on credit has become acceptable in our culture. We are driven by consumerism.

Back

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.

Front

Which of the following is not a benefit of understanding your own money personality? Recognizing who you are allows you the opportunity to grow and learn. Once you know your money personality, you can develop a financial plan that works for you. Knowing your money personality allows you to excuse excessive spending because it is simply part of your nature.

Back

Knowing your money personality allows you to excuse excessive spending because it is simply part of your nature.

Front

Person/organization that uses a product/service

Back

Consumer

Front

Granting of a loan; any form of deferred payment

Back

Credit

Front

Debt evidenced by a note; specifies the specific amount, interest rate, and date

Back

Loan

Front

Obligation of repayment owed by one party to another party.

Back

Debt

Front

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

Back

Interest