DR - 1 Test

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

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

  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.

  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

  What is financial literacy?  

• A. The content provided in bank statements for consumers

• B. The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

• C. The curriculum provided to college students about finances for their degrees

• D. The skills to read financial documents for personal finance classes, goals, and statements

  What are The Five Foundations?  

• A. A personal financial action plan

• B. A starting point for adults regarding finances

• C. A financial literacy technique

• D. A common conclusion for debt

  Personal finance is 20%________ and 80% _________.  

• A. Head knowledge; behavior

• B. Behavior; head knowledge

• C. Cause; effect

• D. Reactions; behaviors

  What is The Fifth Foundation?  

• A. Pay cash for your car.

• B. Get out and stay out of debt.

• C. Find a financial professional.

• D. Build wealth and give.

what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay

• Net Income

• Expense

• 1090

• Gross Income