Personal Finance Ch. 1

Making the right choices with your money—managing your money—involves knowing how . .

• A. Planning, saving, spending, and investing will define your financial portfolio

• B. To make bank deposits using registers with the appropriate transactions listed

• C. Consumer decisions will affect your accounts

• D. Earning, budgeting, saving, spending, and giving affect your money

2. Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

• A. True

• B. False

3. You should always make sure you have a…

• A. Budget

• B. Credit line

• C. Direct deposit

• D. Credit card

To gain an understanding of your personal finances, you should know . . .

• A. Your financial goals

• B. Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals

• C. How much income you have

• D. Your investment portfolio and your financial advisors’ contact information

5. What is The First Foundation?

• A. Pay cash for college.

• B. Build wealth and give.

• C. Save a $500 emergency fund.

• D. Open a checking account.

Being a spender has many more positives than being a saver.

• A. True

• B. False

Personal finance is all the financial decisions a(n) must make in order to earn, budget, save, spend, and give money over time.

• A. Individual or family

• B. Company or organization

• C. Individual or company

• D. Bank

Avoiding debt can lead to financial freedom and hope.

• A. True

• B. False

After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit…

• A. Started to become more socially acceptable

• B. Increased so rapidly, loan sharks became obsolete

• C. Was offered at even higher interest rates by loan sharks

• D. Was devalued in the marketplace

A money principle to keep in mind is to live on you make

• A. Exactly 20% below what

• B. More than

• C. The same as

• D. Less than