Chapter 1 Review - Introduction to PF

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

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

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

• consumer decisions will affect your accounts.

• earning, budgeting, saving, spending, and giving affect your money.

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

• True

• False

You should always make sure you have a...

• budget.

• credit line.

• direct deposit.

• credit card.

To gain an understanding of your personal finances, you should know where you stand financially, how much income you have, what goals you want to set, and how you'll reach those goals.

• True

• False

What is the First Foundation?

• Pay cash for college

• Build wealth and give

• Save a $500 emergency fund

• Open a checking account

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

• True

• False

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

• individual or family

• company or organization

• individual or company

• bank

Avoiding debt can lead to financial freedom and hope.

• True

• False

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

• started to become more socially acceptable.

• increased so rapidly, loan sharks became obsolete.

• was offered at even higher interest rates than loan sharks.

• was devalued in the marketplace.

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

• exactly 20% below what

• more than

• the same as

• less than