Personal Finance Final Exam

You should always make sure you have a ….

• Credit card

• Direct deposit

• Credit line

• Budget

What is the First Foundation?

• Open a checking account.

• Save a $500 emergency fund.

• Build wealth and give.

• Pay cash for college.

A ________ financial goal takes up to two years to reach.

• Long-term

• Medium-term

• Short-term

• Five-level

Which of the following is NOT a component of a budget?

• Credit score

• Saving

• Income

• Giving

Going to the movies is an example of what types of expenses?

• Intermittent and variable

• Discretionary and variable

• Discretionary and fixed

• Intermittent and fixed

The interest rate on a savings account determines……

• How much money you need to have to open the account.

• How much you will pay the bank to manage the account.

• The amount of time your money will be in the account.

• How quickly your money will grow over time.

Compound interest is earned at a fixed rate, while ________ is an average based on an investment’s past performance.

• The principal

• Interest rate

• The Fifth Foundation

• Compound growth

Banks and lenders use credit scores to determine…

• your eligibility for loans and interest rates

• your employment status

• your educational background

• your age

While it may not always appear so, the majority of Americans live paycheck to paycheck.

• True

• False

The debt snowball method involves….

• Waiting until the winter months to begin paying off debt.

• Paying off debts from largest to smallest.

• Pooling together money from other people to pay off your debt.

• Paying off debts from smallest to largest.