Chapter 1 Test

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 ______________

• Credit Card

• Direct Deposit

• Financial Plan

• Line of Credit

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

• Your financial goals

• How much net income you have

• How much net income you have

  Your goals & Where you stand financially

• Your investment portfolio

What is the Last Foundation?

• Get out of debt and stary out of debt.

• Save $500 for an emergency

• Pay cash for college

• Be generous

Being a Spender has many more POSITIVES than being a Saver

• True

• False

Personal Finance is all the financial decisions a _____________must make in order to earn, budget, save, spend, and give generously.

• Family and individual

• Company and Organization

• Individual or Company

• Bank

Avoiding debt can lead to financial freedom and hope.

• True

• False

To know your positive net worth, your ____________ must be more than your ________________.

• liabilities, assets

• expenses, net income

• gross income, expenses

• Assets, liabilities

What is financial literacy?

• The content provided in bank statements for consumers.

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

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

• Reading financial documents for personal finance classes, goals and statements.

SAVERS have a tendency to be _________________.

• Strict with their purchases but spend money WITHOUT a plan.

• Strict with only purchases for themselves.

• Strict with what they spend their money on, other than groceries.

• Strict with their money and not spend any of it.