Money Matters - 1st Semester Exam

You should always make sure you have a...

• Budget

• Credit line

• Direct deposit

• Credit card

What is the first foundation?

• pay cash for college

• build wealth and give

• save a $500 emergency fund

• open a checking account

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 home.

• True

• False

After World War 1, 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 by loan sharks

• was devalued in the marketplace

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

• exactly 20% below what

• more than

• the same as

• less than

To know your net worth, subtract your liabilities from your _____.

• other liabilities

• net income

• previous net worth

• assets

What is the best way to avoid running out of money too quickly?

• you can make it a habit to plan and set goals for your money

• you can avoid making any purchases for the next 30 days

• you can put your money in a safe place, like a bank, and not spend it

• you can invest in college

An important money principle to consider is that you should _____ and _____ your money.

• invest; lay out

• save; invest

• spend; invest

• invest; endow

If you assets total more than your liabilities, you will have a(n) _____ net worth.

• negative

• equal

• positive

• unknown