Savings Quiz Dave Ramsey Course

Even though a regular savings account is suitable when you are saving $500 for your beginner emergency fund, why is a money market mutual fund a better place to keep your completed emergency fund?

• a money market mutual fund is easy to access

• typically, a money market mutual fund averages a higher interest rate than a savings account

• a money market mutual fund has check writing privileges

• all of the above

How much money should a couple who makes $54,000 a year have in their beginner emergency fund if they have a $3000 credit card bill and a mortgage?

• 3-6 months of expenses

• 10% of their credit card balance

• $1000

• they should not build an emergency fund until their credit card is paid off

Savings is about:

• discipline and making more money

• pride and greed

• emotion and contentment

• contentment and spending more money

Which statement is true?

• People spend more money when they pay with cash

• When you pay with cash, you have a better chance of negotiating a better deal

• When you pay with cash it is hard to negotiate a deal because you didn't use store credit

• Using a credit card is wiser than carrying cash around

Which of the following is true about the concept of saving?

• Saving must become a priority after all bills are paid

• You will save when you make more money

• You must pay yourself first

• All of the above

What is the most sensible way to buy a $4000 car?

• Pay a down payment of $500 and use 90-day same as cash to pay the balance

• Use the sinking fund approach and save $400 a month for ten months

• Shop around for the best interest rate before taking out a $4000 loan

• Ask your parents to co-sign a loan at your local credit union

Which is NOT a key to saving money?

• your income

• making savings a habit and a priority

• discipline

• focus

The baby steps can best be described as:

• A systemic process for getting out of a financial mess and into wealth building

• A series of seven sequential steps that help you plan, save, and manage money

• A series of steps that work in good times and in bad times

• all of the above

Which of the following is NOT one of the three main reasons to save?

• Emergency fund

• purchases

• pay off debt

• wealth building

Using the sinking fund approach, how much do you have to save to buy a $5000 car one year from now?

• $275 a month

• $324.86 a month

• $400 a month

• $416.66 a month