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Financial Math FINAL Ramsey ch 1-6

Total questions: 50

Worksheet time: 26mins

Name
Class
Date
1.

A yearly fee that's charged by the credit card company for the convenience of the credit card

a)

Annual Fee

b)

Annual Percentage Rate (APR)

c)

ARM

d)

Balloon Mortgage

2.

An arrangement to receive cash, goods, or services now and pay for them in the future.

a)

credit

b)

credit card

c)

credit limit

d)

debit card

3.

a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments

a)

debt consolidation

b)

debt Snowball

c)

Depreciation

d)

finance charge

e)

foreclosure

4.

a lessening in value

a)

debt consolidation

b)

debt Snowball

c)

Depreciation

d)

finance charge

e)

foreclosure

5.

Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term

a)

loan term

b)

myth

c)

paradigm

d)

tax deduction

6.
The five steps to financial success
a)
The Five Compliments
b)
The Five Foundations
c)
The Five Freedom Steps
d)
The Five Money Saving Steps
7.
A savings account that is set aside to be used only for emergency expenses
a)
Safety Fund
b)
Emergency Fund
c)
Savings Fund
d)
Expense Fund
8.
Interest paid on interest previously earned
a)
Simple Interest
b)
Frequent Interest
c)
Interest Account
d)
Compound Interest
9.
A rate which is either charged (on debt) or paid (on investment accounts) for the use of money
a)
Interest Rate
b)
Savings Rate
c)
Inflation Rate
d)
Interest Percentage
10.
The persistent increase in the cost of goods and services or the persistent decline in the purchasing power of money
a)
Deflation
b)
Interest
c)
Inflation
d)
Recession
11.
At your age, a fully funded emergency fund should be...
a)
$1000
b)
$5000
c)
$500
d)
$100
12.
What is the first foundation?
a)
Pay cash for College
b)
Get Out of Debt
c)
Pay Cash for Your Car
d)
Save a $500 Emergency Fund
13.
What is the second foundation
a)
Save a $500 Emergency Fund
b)
Build Wealth and Save
c)
Get Out of Debt
d)
Pay Cash for Your Car
14.

Telling EVERY DOLLAR where to go is having

a)

a budget

b)

authority

c)

a German Shephard

d)

Nice hair

15.

You should do a budget every

a)

Chance you get

b)

Leap year

c)

Halloween

d)

Month

16.

Choose all of the ways that people can have debt:

a)

Car Payments

b)

School Loans

c)

Credit Cards

d)

All of the above

17.

Credit cards are only ok to use when

a)

there is an emergency

b)

yo girl needs a new nails

c)

Mr. O goes to Mexico

d)

Actually Credit cards are always a bad idea

18.

The number-one cause of divorce in North America today is stress and disagreement over money.

a)

True

b)

False

19.

Which of the following is something that a typical millionaire would do?

a)

Spend less money than he or she makes

b)

lease a new car

c)

replace things that are not broken

d)

carry debt

20.
It is okay to use a credit card if you pay it off every month (according to Dave)
a)
true
b)
false
21.

Financial Opportunity that is given up because you choose to do something else with your money

a)

Opportunity Purchase

b)

Opportunity Cost

22.

Which of the following is not a need?

a)

Housing

b)

Eating out

c)

Utilities

d)

Food

23.

When a company places an ad and offers no interest on your purchase for three years

a)

They are not interested in making a profit

b)

They are showing their appreciation to you by giving you free money

c)

The cost of the financing is built into the price of the item

d)

All of the above

24.

Which is not a ʺpower over purchaseʺ tactic?

a)

Compare your purchase with a friend’s

b)

Consider the opportunity cost

c)

Wait overnight

d)

Seek counsel

25.

Which of the following should you consider when making a significant purchase?

a)

Your buying motives

b)

If you can’t pay with cash, don’t buy it

c)

The opportunity cost

d)

All of the above

26.

To buy an item with credit; paying over time.

a)

Financing

b)

Marketing plan

27.

Americans spend a lot of money primarily because

a)

They're trying to live a lifestyle they can't really afford

b)

They know they'll have the money eventually

c)

They're rich, they know what they're doing

d)

They know those things are really important things

28.

Which of the following is not a factor in determining a FICO score?

a)

Getting a personal loan from a bank

b)

Using credit cards

c)

Paying cash for all purchases

d)

Taking out a mortgage on a house

29.

What factors affect a credit score?

a)

Type of debt

b)

New Debt

c)

Duration of Debt

d)

All of the above

30.

12) A credit score is intended to measure:

a)

Your financial success

b)

The risk of your not repaying debt

c)

Your income level

d)

The amount of money you have in the bank

31.

Which of the following is a sign that your identity may have been stolen?

a)

A call from a collection agency about a debt you didnʹt incur

b)

Bank and billing statements donʹt arrive on time

c)

Your credit report shows accounts you didnʹt open

d)

All of the above

32.

If you are a victim of identity theft, you are only responsible for paying back half of the debt.

a)

True

b)

False

33.

There are three credit bureaus: Experian, TransUnion and Equifax.

a)

True

b)

False

34.

You can and should obtain a free copy of your credit report annually in order to check for any suspicious activity.

a)

True

b)

False

35.
Which is an act of identity theft?
a)
Receiving permission to use a parents’ credit card for school clothes
b)
Wrongfully acquiring and using someone’s personal identification
c)
Taking the identity of another individual as inspiration for a costume
d)
Having the same name as another person
36.
An intentional effort to deceive another individual for personal gain
a)
Mean people
b)
Fake
c)
Fraud
d)
Crime
37.
A scam in which an email is sent from someone posing as your bank or other legitimate business asking for personal information.
a)
Social Engineering
b)
Skimming
c)
Phishing
d)
Pharming
38.

A portion of each payment is for interest while the remaining amount is applied towards the __________________________ balance.

a)

principal

b)

interest

c)

interest rate

d)

loan term

39.

Initially, a large portion of each payment is devoted to __________________________.

a)

interest

b)

the principal balance

c)

loan term

d)

interest rate

40.

Personal finance is about _______% behavior and _______% head knowledge.

a)

30, 70

b)

20, 80

c)

70, 30

d)

80, 20

41.

A measurement of the total dollar value of a person’s or business’ assets minus liabilities is called:

a)

Net Worth

b)

Wealth

c)

Earnings

d)

Income

42.

A liability can be described as:

a)

Something you own that has value

b)

Money you owe; a debt

c)

Something that goes down in value over time

d)

Money that you have in a savings account

43.

Which of the following describes the best way to buy a car?

a)

Ask your parents to borrow money for the purchase

b)

Save up and pay cash for a used car in your price range

c)

Save up a nice down payment and finance the remaining cost of the car

d)

Allow your grandparents to cosign your loan for a new car

44.

What factors affect a credit score?

a)

Type of debt

b)

New Debt

c)

Duration of Debt

d)

All of the above

45.

Which of the following is not recommended in the debt snowball method of getting out of debt?

a)

List your debts in order from smallest to largest balance and focus on paying the smallest debt off first.

b)

Every extra dollar you get should be thrown at the largest debt first.

c)

Attack your debt with intensity.

d)

Every time you pay off a debt, you add its old minimum payment to your next debt payment.

46.

If you say you're going to do something, do it. If you make a mistake, own up to it. The workplace is not like school where you can explain away not completing your work with a simple 'I forgot.' I am talking about which professional Skill ?

a)

Critical thinking

b)

Responsibility

c)

Communication

d)

Handling pressure

e)

Time management

47.

Indulging in inappropriate behaviour, not maintaining confidentiality, and not adhering to established norms are a few things that can place your----in question.

a)

Networking

b)

Interpersonal skills

c)

Adaptability

d)

Integrity

e)

Leadership

48.

Which of the following may be considered to improve your proficiency in basic techniological knowhow ?

a)

MS excel

b)

Google G Suite applications

c)

SEO,HTML Webpage designing

d)

communication skills

e)

time management

49.

Being proactive in your workplace is a habit you must develop. Don't have a task to do? Don't sit around browsing Facebook or YouTube, go to your boss and ask for something to do.Those who have this skill get work done are more valuable to any organization. identify the skill form the following .

a)

Networking

b)

Learning

c)

Initiative

d)

Adaptability

50.

In the work setting, it is important to

a)

only lie about little things

b)

only tell lies if you're sure no one will find out

c)

be honest