Dave Ramsey Chapter 1

Front

All are key components of financial planning except: Write out a detailed plan for accomplishing your goals. Replace money myths with money truths. Allow your financial planner to make all of your decisions. Regularly monitor and reassess your financial plan.

Back

Allow your financial planner to make all of your decisions.

Front

Which of the following statements best describes how Americans are being outsmarted by banks? Credit is marketed so well that we want to have it. 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 want to have it.

Front

Personal financial success is primarily the result of: Managing your money behavior, Winning the lottery, Generous welfare and unemployment programs, Inheriting money from your relatives

Back

Managing your money behavior

Front

Which of the following statements best explains why income alone does not determine wealth?
- Investing is the only factor that contributes to wealth
- Income alone does not determine wealth
- Only people who are natural savers can become wealthy
- The money a person makes does not dictate her spending behavior.

Back

The money a person makes does not dictate her spending behavior.

Front

Which of the following is a consequence of spending more than you make? Missed opportunities to save and invest, Stress, A cycle of debt, All of these

Back

All of these

Front

Which of the following is not a true statement:
Americans learned to borrow during post WWII prosperity
The credit industry in America has not changed much since 1917
After 1970, consumer debt skyrocketed
As banks made profits, they lent more money to consumers

Back

The credit industry in America has not changed much since 1917

Front

When it comes to managing money, successes about _____% knowledge and _______% behavior.

Back

20% knowledge and 80% behavior.

Front

The widespread financial insecurity of Americans is primarily because:

Back

Savings rate of Americans is low and they spend more

Front

Which of the following is not a factor in becoming money smart?
Have knowledge in basic math,
Learn the language of money,
Manage your behavior with your money,
Learn how to read your credit card statements

Back

Learn how to read your credit card statements

Front

Why was the use of credit uncommon before 1917? Options: Laws prevented lenders from charging high interest rates, Borrowing money was generally not socially acceptable, Lending money to others was not profitable, All of the above

Back

All of the above