Chapter 1 and 2 Review Dave Ramsey

 1) Which of the following is not a true statement

• After 1970, consumer debt skyrocketed. 
•  The credit industry in America has not changed much since 1917. 
•  Americans learned to borrow amidst post-WWII prosperity. 
•  As banks made higher profits, they were willing to lend more money to consumers.
  

Personal Financial success is primarily the result of 

• ) Inheriting money from your parents 
•  Winning the lottery 
• ) Generous welfare and unemployment programs 
•  Managing your money behavior
  

 At your age a fully funded emergency fund should be

•   $500 
• $5,000 
• $1,000 
• $100
  

  When it comes to saving money, the amount you save is determined by how much you have left at the end of the month once all of your spending is done.

• true
• false

 The five steps to financial success 

• Five Foundations
• Five money myths

Saving money over time for a large purchase 

• installment loan
• sinking fund
  

which of the following is not one of the three basic reasons for saving money

• Build wealth
• Emergency fund 
• Have money available to lend to friends 
•  Large purchases
  

 Instead of borrowing money for large purchases, you should set money aside in a ________ over time and pay with cash

• Credit Card Fund
• Mortgage Fund
• Emergency Fund
• Sinking Fund

Saving is about

•  Contentment and emotion 
• Pride and greed 
• Contentment and earning more money
  
• Making more money and discipline 

For which of the following should you save

• Purchase
• Emergency Fund
• Wealth Building
• All of the above