WorksheetsRamsey Chapters 1-5
Total questions: 50
Worksheet time: 28mins
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
Which of the following things cannot be done with a debit card but can be done with a credit card?
Go into debt
Rent a car
Purchase something online
Purchase an airline ticket
What factors affect a credit score?
Type of debt
New Debt
Duration of Debt
All of the above
Which of the following is the most cost-effective option for purchasing a home?
Get a 15-year mortgage with a 5% down payment.
Get a 30-year mortgage so that you can get the lowest possible payments
The most ideal way to buy a house is with 100% down; if that is not an option, you should get no more than a 15-year, fixed rate mortgage with a down payment of at least 10%.
Get a 30-year mortgage with a 20% down payment.
What is paycheck garnishment?
A court-ordered attachment that allows a lender to take monies owed directly from a borrowerʹs
paycheck
Process of taking something back for failure to make payments
Process by which the holder of a mortgage sells the property of a homeowner who has fallen behind on payments
A legal procedure for dealing with debt problems of individuals and businesses
Which of the following is not a credit myth?
The lottery and other forms of gambling will make you rich.
You have ʺarrivedʺ financially once you get approved for a credit card.
Debt is a tool and should be used to create prosperity.
Borrowing money can have serious consequences and prevent you from building wealth.
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
Which of the following is a sign that your identity may have been stolen?
A call from a collection agency about a debt you didnʹt incur
Bank and billing statements donʹt arrive on time
Your credit report shows accounts you didnʹt open
All of the above
Which of the following is a consequence of overdrawing your checking account?
Bounced check fee from the store
Stress from money mismanagement
Overdraft fee from your bank
All of the above
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
Your monthly budget should include
variable expenses
discretionary expenses
fixed expenses
all of the above
Which of the following statements is false?
A cash flow statement summarizes all of the incomes and outgo (spending) over a certain time period
a budget is a written plan for saving and spending
a budget is meant to summarize the saving and spending that has taken place over the past year
the cash flow statement is reflective of what has already taken place
Which of the following is something that a typical millionaire would do?
Lease a new car
spend less money than he or she makes
replace things that are not broken
carry debt
Rent is a
fixed expense
variable expense
discretionary expense
intermittent expense
Eating out is a
fixed expense
variable expense
discretionary expense
intermittent expense
Car repairs are a
fixed expense
variable expense
discretionary expense
intermittent expense
Groceries are a:
fixed expense
variable expense
discrtionary expense
intermittent expense
A written a budget, if followed, remove ____________ from your finances.
Overspending
Guilt
Management by crisis
All of the above
The zero-based budget is the best method of budgeting because
The type of budget is less complicated than other types of budgets
A zero-based budget allows less money for wants
Sticking to a zero-based budget requires less discipline
The zero-based budget ensures that every dollar you make is assigned a specific purpose
The number-one cause of divorce in North America today is stress and disagreement over money.
True
False
The envelope system works great for managing spending on things that don't normally have a fixed monthly expense.
True
False
The persistent rise in the cost of goods and services.
Economy
Uprising
Inflation
Deflation
When a person intentionally invests money in a place where it can earn more money.
Wealth Building
Sinking Fund
Savings
Investment Capital
Save a $500 emergency fund.
the Fourth Foundation
the Third Foundation
the Second Foundation
the First Foundation
The five steps to financial success.
Five money myths
Five banking steps
Five Foundations
None of the above
Compares after-tax income to the money people spend on a variety of items.
Savings rate
Interest rate
Net income
Gross income
Interest paid on interest previously earned.
simple interest
compound interest
percentage interest
none of the above
Saving money over time for a large purchase.
piggy bank
value of money
installment loan
sinking fund
Money set aside and left alone for a "rainy day."
credit card
emergency fund
checking account
savings account
You should hold off on investing for retirement until you have college or other post-secondary education paid for.
True
False
You should keep your emergency fund in the same account as your spending money.
True
False
Your income level greatly affects your savings habits.
True
False
The first thing you should save for is your retirement fund.
True
False
Why should interest earned not be a factor with your emergency fund?
Inflation can eat up the interest earned.
Interest-bearing accounts at banks earn a high-rate of interest, therefore, interest is not a concern.
The emergency fund is not intended to grow wealth.
None of the above
Why is having a fully funded emergency fund so important when it comes to your financial well-being?
As long as you have a good-paying job, you really don't need an emergency fund.
The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.
The purpose of an emergency fund is to have money set aside for large purchases, like vacations.
None of the above
Which of the following is NOT one of the three basic reasons for saving money?
Build wealth
Have money available to lend to friends
Large purchases
Emergency fund
Which of the following is a reason that people don't save money?
They lack focus
They do not live on a budget
They lack discipline
All of the above
Which of these is NOT a key to saving money?
Focus
Making saving a habit and a priority
Your income
Discipline
For which of the following should you save?
Emergency fund
Wealth building
Purchases
All of the above
What does it mean to have a negative savings rate?
Spending more money than you make and acquiring debt
Having no savings at all
Having a fully funded emergency fund
Saving for something that is a want instead of a need
Instead of borrowing money for large purchases, you should set money aside in a ____ over time and pay with cash.
Mortgage fund
Credit card fund
Sinking fund
Emergency fund
