PFL-Ramsey Education Post

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 personʹs wealth.

• Only people who are natural savers can become wealthy.

• How much money a person makes does not dictate his or her spending and saving behavior.

The widespread financial insecurity of Americans is primarily because:

• The incomes of Americans are low.

• Government programs are unavailable to help people when they are disabled or experience unemployment.

• Most Americans save a high proportion of their income.

• The saving rate of Americans is low and many borrow in order to spend more than they earn.

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

• Have money available to lend to friends.

• Build wealth.

• Emergency fund.

• Large purchases.

This principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This is due to both the opportunity to earn interest on the money and because inflation will drive prices up, thereby changing the ʺvalueʺ of the money.

• Interest rate

• Opportunity cost

• Inflation

• Time value of money

Rent is a:

• Fixed expense

• Variable expense

• Discretionary expense

• Intermittent expense

Which of the following account records would have the most current balance?

• Your monthly bank statement

• Your own account register

• Account balance statement from the ATM

• All of these records will have accurate account balances

A credit score is intended to measure:

• Your financial success

• Your income level

• The risk of your not repaying debt

• a.The amount of money you have in the bank

Which of the following things cannot be done with a debit card but can be done with a credit card?

• Go into debt

• Purchase an airline ticket

• Rent a car

• Purchase something online

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 associateʹs 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.

When a company places an ad and offers no interest on your purchase for three years:

• They are showing their appreciation to you by giving you free money

• The cost of the financing is built into the price of the item

• They are not interested in making a profit

• All of the above