Dollars and Sense review Semester 1

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

• Have knowledge of basic math

• Learn how to read your credit card statements

• Learn the language of money

• Manage your behavior with money

When developing a personal financial plan, one of the first things you should do is assess your current financial situation. This includes your income, assets, and liabilities.

• True

• False

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

• True

• False

n obligation of repayment owed by one party to a second party

• Debt

• Ownership

A fee paid by a borrower to the lender for the use of borrowed money.

• Bills

• Interest

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

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

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

A system by which goods and services are produced and distributed

• Assets

• Economy

Since you are a teenager, what you do now with money will have little effect on your financial future.

• True

• False

A debt evidenced by a ʺnote,ʺ which specifies the principal amount, interest rate and date of repayment

• Bank fee

• Loan

When developing a personal financial plan, one of the first things you should do is assess your current financial situation. This includes your income, assets, and liabilities.

• True

• False