Dave Ramsey - Chapter 3 Review

You save for ___________ when you don't have the cash to buy it now.

• an Emergency Fund

• a Large Purchase

• an Investment

• Wealth Building

_________ is the average growth for an investment over a period of time.

• Compound Growth

• Rate of Return

• Accrued Interest

• Time Value of Money

The initial amount of money you deposit or invest is called the _______.

• Rate of Return

• Compound Growth

• Interest Rate

• Principal

___________ Deals, such as "90 Days Same as Cash", are often used to get you to buy higher-priced items.

• Holiday Sale

• Large Purchase

• Interest Rate

• None of these

"Rate of Return" is a phrase used to describe what aspect of investing?

• Compound Growth

• Accrued Interest

• Risk and Return Ratio

• Inflation

When you make a purchase but later wish you hadn't done so, you experience ______.

• Selfishness

• Impulse Purchase Syndrome

• Buyer's Remorse

• Time Value

_______ refers to the earning potential of money.

• Time Value of Money

• Compound Growth

• Principal

• Rate of Return

Which of the following questions helps you determine if something is actually an emergency expense?

• Is it urgent?

• Is it unexpected?

• Is it necessary?

• All of the above

What two elements do you need to build wealth through compound growth?

• An inheritance and a lawyer

• Money invested and time

• Money invested and good stocks

• Time and a wealthy relative

An investment's _______ is its percentage gain or loss over time.

• Compound Growth

• Interest Rate

• Rate of Return

• Time Value of Money