DR Ch. 1 Test Review

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.

  Being a spender has many more positives than being a saver.  

• True

• False

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

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

• A. Other liabilities

• 
  B. Net income

• C. Previous net worth

• D. Assets

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

As a single adult, you should . . .  

• A. Keep managing your money as a priority

• B. Have an accountability partner you trust somewhat

• C. Beware of planned and budgeted buying

• D. Seek a financial counselor or advisor by age 25