New Dave Ramsey Post Test Review

Which of the following statements BEST explains why income alone does not determine wealth?

• Investing is the only factor that contributes to wealth building
• Income alone does determine a person's wealth
• Only people who are natural savers can become wealthy
• How much money a person makes does not indicate his or her spending and saving behavior

Which of the following is NOT one of the three basic reasons for saving money?

• Having money available to lend to friends
• Emergency Fund
• Build wealth
• Large Purchases

Rent is a 

• Fixed Expense
• Discretionary Expense
• Variable Expense
• Intermittent Expense

A credit score is intended to measure:

• Your financial success
• Your income level
• The risk of your not repaying debt
• The amount of money you have in the bank

Which of the following statements is false?

• On-the-job training often combines a professional trainer, hands-on activities and formal classroom training
• All high-paying careers require a four-year college degree
• An associate's degree is a two-year degree that can offer specialized training and a flexible schedule that allows you to work while you earn your degree
• Students who are looking to learn specific skills can look into free or low-cost certifications found online, at community colleges, or through government-funded programs

What concept is best explained by the statement, "Money spend here cannot be spent there"?

• Law of diminishing return
• Opportunity cost
• Delaying gratification
• Significant Purchase

Which statement is true about liquidity?

• The more liquid an investment, the less return
• The more liquid an investment, the more return
• The less liquid the investment, the less return
• Both A and B

When buying and selling investments, you should not:

• Learn the different types of investments
• Switch your investment strategy often, based on market conditions
• Understand basic investment strategies and identify ones that will help you reach your goals
• Set your investment goals and consider a time frame

Employee benefit packages:

• Are non-wage compensations provided to employees in addition to their normal wages or salaries
• Should not be a consideration when looking for a job
• Never include retirement plans
• Are the same regardless of the company you work for

What is the difference between gross pay and net pay?

• Net pay describes your pay after deductions; gross pay is before
• Gross pay describes your pay after deductions; net pay is before
• Gross and net pay are the same
• None of hte abouce