PerFin Review 2 --includes general and credit questions

Having debt keeps you from building wealth.

• True
• False

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.

Key components of financial planning include all of the following except:

• write out a detailed plan for accomplishing your goals
• Replace money myths with money truths
• Allow your financial planner to make all of your major money decisions
• Regularly monitor and reassess your financial plan.

Which of the following statements best describes how Americans are being outsmarted by banks and other leaders?

• Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being.
• We are taught that we can buy happiness
• Buying things on credit has become acceptable in our culture.
• We are driven by consumerism

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

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 dictate his or her spending and saving behavior.

Which of the following is a consequence of spending more than you make?

• Missed opportunity to save and invest
• stress
• a cycle of debt
• All of the above

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.

When it comes to managing money,  success is about _______% knowledge and _____% behavior.

• 50, 50
• 60, 40
• 80,20
• 20, 80

The widespread financial insecurity of Americans is primarily because:

• The income of Americans are low
• The saving rate of Americans is low and many borrow in order to spend more than they earn
• Government programs are unavailable to help people when they are disabled or experience unemployment
• Most American's save a high proportions of their income