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Dave Ramsey Basic Knowledge

Total questions: 15

Worksheet time: 14mins

Name
Class
Date
1.

Prior to the 1970’s, debt was something most Americans were ashamed of.

a)

True

b)

False

2.

A lot of people you think “look” wealthy are broke and in debt.

a)

True

b)

False

3.

Personal finance is ____% behavior and ____% knowledge.

a)

50, 50

b)

80, 20

c)

20, 80

d)

1, 99

4.

In America, being “normal” is ______.

a)

wealthy

b)

broke

5.

The reason debt has become a problem in America is because

a)

loaning money became profitable for banks and other businesses

b)

Americans are forced to get loans.

6.

We are bombarded with marketing ads that

a)

push us to buy things

b)

make us feel like a want is a need

c)

are everywhere

d)

All of these

7.

We are told that debt is normal. It has become acceptable in or culture to use credit to buy ___________________.

a)

Clothes

b)

Jewelry

c)

Food

d)

EVERYTHING

8.

Personal financial success is primarily the result of:

a)

Managing your money behavior

b)

Winning the lottery

c)

Welfare and unemployment programs

d)

Inheriting money from your relatives

e)

Making more money

9.

Your income determines your wealth.

a)

True

b)

False

10.

Which of the following is a consequence of spending more than you make?

a)

Missed opportunities to save and invest

b)

Stress

c)

A cycle of debt

d)

All of these

11.

The widespread financial insecurity of Americans is primarily because:

a)

Americans have low incomes.

b)

Americans don't save and they spend more than they make.

c)

Interest rates in America are low.

d)

Most Americans save a high proportion of their income.

12.

When it comes to personal finance, the math is easy, What's challenging is managing your

a)

Behavior

b)

Income

c)

Friends

d)

Bank account

13.

A young investor willing to take moderate risk for above-average growth would be most interested in:

a)

Single stocks

b)

Bonds

c)

Mutual funds

d)

Real estate

14.

The benefit of diversification in your investments is:

a)

Reduced risk

b)

Reduced tax liability

c)

Having a portfolio

d)

Increased risk

15.

According to Dave Ramsey & Mr. B. Frazee:

If you put $500 in a mutual fund when you turn 18 and then add just $20 a week, when you turn 60 (retirement age) you will be a millionaire!

a)

True

b)

I'm going to do it!

c)

That sounds like too much.

d)

I don't want to be a millionaire

e)

False