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WorksheetsDave Ramsey 1-3,4,5,7 Ch Quiz
Total questions: 62
Worksheet time: 45mins
How much money should be in an emergency fund?
100
Have no clue because I wasn't listening.
500
1000
Regularly__________your financial plan
ignore
monitor
glance
Borrowing money___________.
don't know
is a strategic tool for building wealth
helps to buy things you can afford
can cause problems
Your emergency fund should be kept________
at your parents house
with your regular money
in a credit card
in separate account
What is a common money myth?
building wealth is a good idea
debt is dumb
I can go to college without debt
everyone has student loan debt
When I want to buy I car I should________________
pay cash
borrow from my parents
borrow from the bank
Saving money over time for a large purchase
Savings Account
Sinking Fund
Checking Account
Interest Bearing Account
Doing a budget does not
Show if you are overspending in an area
make overspending more likely
remove guiltand shame sometimes associated with a purchase
make your money go further
The number-one cause of divorce in North America today is stress and disagreement over money.
True
False
Budgeting is crucial to your financial success.
True
False
Doing a budget does not:
Show if you are overspending in an area
Remove guilt and shame sometimes associated with a purchase
Make overspending more likely
Make your money go further
Which of the following is something that a typical millionaire would do?
Spend less money than he or she makes
lease a new car
replace things that are not broken
carry debt
Budgeting is crucial to your financial success.
True
False
Which of the following is not a factor in determining a FICO score?
Getting a personal loan from a bank
Using credit cards
Paying cash for all purchases
Taking out a mortgage on a house
Which of the following is not a good idea for getting out of debt?
Quit borrowing money
Get a part-time job or work overtime
Sell something
Borrow money from your parents to pay for the debt
What factors affect a credit score?
Type of debt
New Debt
Duration of Debt
All of the above
Which of the following is not a recommended step in the Drive Free method of purchasing a car?
Plan your purchase in advance using the sinking fund method of saving.
Place your savings in a mutual fund so that your money can make more money.
Start with an inexpensive car and gradually move up in car value as your savings increases.
Explore new car dealerships for the best interest rate.
Which of the following is not recommended in the debt snowball method of getting out of debt?
List your debts in order from smallest to largest balance and focus on paying the smallest debt off first.
Every extra dollar you get should be thrown at the largest debt first.
Attack your debt with intensity.
Every time you pay off a debt, you add its old minimum payment to your next debt payment.
If you do not have a FICO score, what factors will determine whether or not you qualify for a mortgage?
History of rental and utility payments
Amount of your down payment and employment history
You cannot get a mortgage without a credit history
A and B
12) A credit score is intended to measure:
Your financial success
The risk of your not repaying debt
Your income level
The amount of money you have in the bank
You need to have a credit card to rent a car or check in to a hotel.
True
False
Teens are a huge target of credit card companies today.
True
False
Co-signing a loan is a good way to help a friend or relative.
True
False
A detailed report of an individualʹs credit history
FICO Score
Debt Snowball
credit report
cash flow statement
A card issued by a bank that allows users to finance a purchase
credit card
check
debit card
ATM Card
Personal financial success is primarily the result of:
Managing your money behavior
Winning the lottery
Generous welfare and unemployment programs
Inheriting money from your relatives
Which of the following statements best explains why income alone does not determine wealth?
Investing is the only factor that contributes to wealth
Income alone does not determine wealth
Only people who are natural savers can become wealthy
The money a person makes does not dictate her spending behavior.
Which of the following is a consequence of spending more than you make?
Missed opportunities to save and invest
Stress
A cycle of debt
All of these
Why was the use of credit uncommon before 1917?
Laws prevented lenders from charging high interest rates
Borrowing money was generally not socially acceptable
Lending money to others was not profitable
All of the above
Most Americans today are wealthy and will have financial security when they retire
True
False
I don't care
Maybe
Most Americans avoid the use of credit when it comes to buying big ticket items like a car or a house.
Maybe
True
False
I don't know
Learning the language of money is not important because you will be able to depend on others
True
False
Maybe
I do not know
Having debt keeps you from building wealth
True
False
Maybe
I do not know
Expensive houses and new cars are a true indication of wealth
True
False
Not usually
I do not know
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
Financial Literacy
Saving
Budgeting
Investing
Gold
You must go to a prestigious school in order for employers to recognize your talents and strengths.
True
False
Which of the following is NOT a good option when it comes to paying for your education?
Plan ahead
Fill out the FAFSA
Ask your parents to take out a loan
Get a part-time job
The academic and financial choices you make in the next few years will affect the next 40 years of your life.
True
False
The average repayment period for a student loan is:
15 years
5 years
20 years
10 years
The Fourth Foundation is:
Pay cash for your car
Build wealth and give
Build a $500 emergency fund
Pay cash for college
A four year degree is necessary regardless of which career you're entering.
True
False
