Financial Literacy - Ch 1 & 2

1) Which of the following best explains why students should learn about personal finance?

• Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.

• Personal finance skills are better learned through trial and error.

• Personal finance skills are highly complex and require a great deal of time to learn.

• Learning to manage money will help you achieve a profitable career.

Personal financial success is primarily the result of:

• Managing your money behavior

• Winning the lottery

• Generous welfare and unemployment programs

• Inheriting money from your parents

6) Which of the following is not a true statement?

• Americans learned to borrow amidst post-WWII prosperity.

• The credit industry in America has not changed much since 1917.

• After 1970, consumer debt skyrocketed.

• As banks made higher profits, they were willing to lend more money to consumers.

Which of the following is not a factor in becoming money smart?

• Have knowledge of basic math

• Learn the language of money

• Manage your behavior with money

• Learn how to read your credit card statements

When it comes to personal finance, the math is easy. Whatʹs challenging is managing your

.

• Income

• Friends

• Bank account

• Behavior

True financial security is achieved when your money begins to generate an income -your money starts working for you

• TRUE

• FALSE

• I DON'T KNOW

Most Americans avoid the use of credit when it comes to buying big -ticket items like a car or furniture for their home.

• TRUE

• FALSE

• I DON'T KNOW

The credit system today is structured to accommodate a state of uncertain employment and income instability, utilizing high interest rates and fees to turn huge profits.

• TRUE

• FALSE

• I DON'T KNOW

Which of the following steps is the First Foundation?

• Get out of debt

• Build wealth and give

• Save a $500 emergency fund

• Pay cash for your car

The saving habits of Ben and Arthur best illustrate which principle of saving?

• The length of time money is invested matters.

• The amount of the initial investment is the key.

• Rate of return matters.

• Both length of time money is invested AND Rate of return matters

Tags

CCSS.6.EE.A.1