WorksheetsPFL Quiz 1: Chapter 1
Total questions: 20
Worksheet time: 13mins
Personal finance is all the financial decisions an individual or family
must make in order to earn, budget, save, spend, and give money over time.
True
False
A person or organization that uses a product or service.
Accountant
Economist
Consumer
Financial Advisor
Debt is....
Money owed to you.
Money owed to another person or company.
Money in your savings account.
good to have.
Credit is the granting of a loan and the creation of debt;
any form of deferred payment.
False
True
Prior to 1920, the only way for banks to make money by loaning money was to charge sky-high ________.
credit
debt
interest rates
What is the additional cost a lender charges for borrowing their money called?
assets
interest
dividends
fees
Net worth is the .....
amount by which the value of a person's assets exceeds or falls behind the value of their liabilities.
financial debt or obligations
anything owned by an individual
An asset is anything that is owned by an individual, including money in the bank or investments.
True
False
This is the total of all your debt, such as balances on credit cards,
student loans, personal loans, car loans, and home mortgages.
Assets
Liabilities
net worth
gross income
If the value of your assets is greater than your liabilities, you'll have a _______ net worth.
positive
negative
poor
personal
Financial literacy is the the knowledge and skill base necessary for
people to be informed consumers and manage their finances effectively.
True
False
What is the purpose of an emergency fund?
To pay for vacations.
To cover unexpected expenses.
To invest in the stock market.
To buy luxury items.
Which of the following statements best describes how Americans are being outsmarted by banks and other lenders?
Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being.
We are taught that we can buy happiness.
Buying things on credit has become acceptable in our culture.
We are driven by consumerism.
What is The First Foundation?
Pay cash for college.
Build wealth and give.
Save a $500 emergency fund.
Open a checking account.
A money principle to keep in mind is to live on ____ you make
Exactly 20% below what
More than
The same as
Less than
The Five Foundations provide a simple ________ to help you win with money.
action plan
guide for investing
suggestion
educational course
