What do you know about finances?

What do you know about finances?

Class discussion

Multiple Choice

People's income depends on their education, career choices, economic conditions, and the investments they make.

• True

• False

Multiple Choice

How much money a person needs will depend on the lifestyle a person chooses.

• True

• False

Multiple Choice

Fixed expenses are more important than variable expenses when tracking the amount of money you spend.

• True

• False

Multiple Choice

Accurate recording of expenses helps people plan for their needs and wants.

• True

• False

Multiple Choice

People with very high incomes don't need a budget.

• True

• False

Multiple Choice

A budget should include your personal income and expenses.

• True

• False

Multiple Choice

If you buy term deposits, savings bonds, or treasury bills, you can earn higher returns than on a savings account, with little or no added risk.

• True

• False

Multiple Choice

If you save 10% of your income from the time you first start working, you'll most likely be able to retire with plenty of money.

• True

• False

Multiple Choice

There are no real differences in the services offered by different financial institutions.

• True

• False

Multiple Choice

Financial institutions don't charge service fees on basic banking services.

• True

• False

Multiple Choice

Paying your credit card bill late can make it more difficult to take out a loan.

• True

• False

Multiple Choice

Using extra money in a bank savings account to pay off credit card debt is a good idea.

• True

• False

Multiple Choice

Buying insurance is a way of protecting yourself from risk.

• True

• False

Multiple Choice

You must purchase minimum auto insurance, but you can also buy more if you more protection.

• True

• False

Multiple Choice

Most investments pay a guaranteed rate of return.

• True

• False

Multiple Choice

The riskiness of an investment may affect the rate of return.

• True

• False

Multiple Choice

Information on the web about an investment is a good way to get tips about investing.

• True

• False

Multiple Choice

A financial plan uses your income, expense, and other financial records to provide a realistic roadmap for achieving your goals.

• True

• False

Multiple Choice

A financial plan shows the steps you need to take to achieve your goals.

• True

• False

Multiple Choice

Identity theft is rare and you don't have to worry about it.

• True

• False

Multiple Choice

Learning to be skeptical about financial scams helps you learn about other kinds of scams.

• True

• False