Critical issues chapters 1 and 2 in finances

 Making the right choices with your money—managing your money—involves knowing how .

A. Planning, saving, spending, and investing will define your financial portfolio

B. To make bank deposits using registers with the appropriate transactions listed

C. Consumer decisions will affect your accounts

==D. Earning, budgeting, saving, spending, and giving affect your money==

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Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

False

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You should always make sure you have a…

==A. Budget==

B. Credit line

C. Direct deposit

D. Credit card

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To gain an understanding of your personal finances, you should know . . .

A. Your financial goals

==B. Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals==

C. How much income you have

D. Your investment portfolio and your financial advisors’ contact information

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What is The First Foundation?

A. Pay cash for college.

B. Build wealth and give.

==C. Save a $500 emergency fund.==

D. Open a checking account.

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Being a spender has many more positives than being a saver.

False

Personal finance is all the financial decisions a(n) must make in order to earn, budget, save, spend, and give money over time.

==A. Individual or family==

B. Company or organization

C. Individual or company

D. Bank

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Avoiding debt can lead to financial freedom and hope.

True

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After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit…

==A. Started to become more socially acceptable==

B. Increased so rapidly, loan sharks became obsolete

C. Was offered at even higher interest rates by loan sharks

D. Was devalued in the marketplace

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A money principle to keep in mind is to live on _____ what you make.

A. Exactly 20% below what

B. More than

C. The same as

==D. Less than==

To know your net worth, subtract your liabilities from your .

A. Other liabilities

B. Net income

C. Previous net worth

==D.Assets==

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What is financial literacy?

A. The content provided in bank statements for consumers

==B. The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively==

C. The curriculum provided to college students about finances for their degrees

D. The skills to read financial documents for personal finance classes, goals, and statements

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Savers have a tendency to be . . .

A. Strict with their purchases but spend money without a plan

B. Strict with only purchases for themselves

C. Strict with what they spend their money on, other than groceries

==D. Strict with their money and not spend any of it==

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What is the best way to avoid running out of money too quickly?

==A. You can make it a habit to plan and set goals for your money.==

B. You can avoid making any purchases for the next 30 days.

C. You can put your money in a safe place, like a bank, and not spend it.

D. You can invest in college.

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 It is possible to pay for college with cash.

True

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Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this program?

==A. To promote economic recovery and social reform==

B. To create a borrowing system within the country

C. To alleviate financial concerns with the United Nations

D. To divide the national budget in half and distribute it

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An important money principle to consider is that you should and your money.

==A. Save; invest==

B. Invest; lay out

C. Spend; invest

D. Invest; endow

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 If your assets total more than your liabilities, you will have a(n) net worth.

A. Negative

B. Equal

==C. Positive==

D. Unknown

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What are The Five Foundations?

==A. A personal financial action plan==

B. A starting point for adults regarding finances

C. A financial literacy technique

D. A common conclusion for debt

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Your money personality impacts . . .

A. Your understanding of bank transactions

==B. How you handle money==

C. Your financial literacy level

D. What you plan for as an adult

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What does living paycheck to paycheck mean?

A. Living paycheck to paycheck is an expression used to describe a situation when someone eagerly awaits their next paycheck to plan for the month’s expenses.

B. Living paycheck to paycheck is an expression used to explain the situation in which a a person cannot plan past the next paycheck due to financial and budgeting difficulties caused by outside circumstances.

==C. Living paycheck to paycheck occurs when a person’s income is devoted to expenses which, in turn, means that little to no money is put in savings.==

D. When a person chooses to not deposit their paycheck, they are living paycheck to paycheck.

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You are either only a natural saver or a natural spender. You cannot have a balance of both.

False

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In 1972, what association made borrowing money to attend college much easier than it had been?

==A. The Student Loan Marketing Association (SLMA)==

B. The Student Loan Approval Association (SLAA)

C. The Federal Student Approval Association (FSAA)

D. The Student Federal Funding Association (SFFA)

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Without any debt, you can be outrageous .

A. Selfish

==B. Generous==

C. Cautious

D. Thrifty

When you set financial goals, they should be . . .

A. Timely, bank-based, specific, and yours

==B. Specific, measurable, time-sensitive, yours, and written==

C. Specific and measurable

D. Only time-sensitive

As a single adult, you should . . .

A. Keep managing your money as a priority

==B. Have an accountability partner you trust somewhat==

C. Beware of planned and budgeted buying

D. Seek a financial counselor or advisor by age 25

Personal finance is 20% and 80% .

==A. Head knowledge; behavior==

B. Behavior; head knowledge

C. Cause; effect

D. Reactions; behaviors

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Using credit has not always been a socially accepted practice, but it has become . . .

A. Less acceptable

B. A practice used by the wealthy

C. Necessary for life in America

==D. Normal in American culture==

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A financial goal takes up to two years to reach.

A. Five-level

==B. Short-term==

C. Medium-term

D. Long-term

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What is The Fifth Foundation?

A. Pay cash for your car.

B. Get out and stay out of debt.

C. Find a financial professional.

==D. Build wealth and give.== 

Although the majority of Americans think budgeting is important, about of Americans actually use a budget.

A. 75%

B. 50%

C. 23%

==D. 35%==

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Which of the following is NOT a component of a budget?

==A. Credit score==

B. Saving

C. Income

D. Giving

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Online budgeting apps are more effective than budgeting with pen and paper.

False

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What are the Four Walls?

A. Utilities, college fund, restaurants, and car insurance

B. Cell phone bill, car insurance, shelter, and money for the movies

C. Food, utilities, transportation, and college fund

==D. Food, utilities, shelter, and transportation==

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How many categories should you have in your budget?

A. 15 or more

==B. No limit; use as many as you need to keep your budget accurate!==

C. No more than 10 

D. At least 3

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How often should you create a budget?

A. Daily

B. Weekly

==C. Monthly==

D. Biannually

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If you get married, only one person is responsible for budgeting.

False

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What does a budget show you?

A. How much you need to save

==B. How much money you plan to come in and go out during the month==

C. How much money you need to earn

D. How much money you spent last month

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Detailed categories on your budget will help you make better spending decisions.

True

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A budget says what will happen with your money, while a cash-flow statement shows what already happened.

True

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How many months does it usually take for your budget to start working as a budget should?

==A. Three==

B. Five

C. Four

D. One

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 Your money personality can affect your .

==A. Attitude toward budgeting==

B. Choice of bank

C. Personal values

D. Ability to budget

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 Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount they have.

A. Money

B. Debit cards

C. Categories in their budget

==D. Personal debt==

Going to the movies is an example of what types of expenses?

A. Intermittent and variable

==B. Discretionary and variable==

C. Discretionary and fixed

D. Intermittent and fixed

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Net income is the amount you get paid before taxes.

True

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Why is tracking your expenses throughout the month important?

A. It allows you to delete categories you don't like.

==B. It gives you insight into whether you're sticking to the budget you set.==

C. It helps you pull money from your savings to spend in other categories.

D. It really isn't that important in the long run.

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What kind of money counts as income?

A. Only the money you make at your job

==B. All money that you receive, including money from your job and gifts like birthday money==

C. Money in your savings account

D. Only money deposited into your bank account

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What is a way to stay accountable to reaching your financial goals?

==A. Finding a person you trust to help keep you on track with your money goals==

B. Hiring a financial advisor to make your decisions about money for you

C. Looking at the budget you set at the end of the month 

D. Creating specific categories in your budget

A common misconception is that budgeting will keep you from having fun, when in reality a budget . . .

A. Adds more stress to your life

B. Means there are no rules—you are free to use your money however you want

C. Restricts your fun completely

==D. Gives you permission to spend==

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The first priority in your budget should be .

==A. Giving==

B. Spending

C. Saving

D. Investing

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 When is the right time to start creating and living by a budget?

==A. Right now - it's never too early!==

B. When you start researching colleges and the costs that come along with it

C. Once you have a job with an income

D. When you decide it's time to buy a car

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What should you do if you overspend in one category of your budget?

==A. Adjust your budget by removing money from other spending categories.==

B. Just leave it. It will probably work out fine.

C. Take money from the Giving category. You're giving to yourself!

D.Ask a friend for the money you overspent.

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 Commission is when you make money based on the percentage of .

==A. Total sales==

B. Investments

C. Budgets

D. Items sold

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What is a good way to make sure you're creating a budget that's realistic?

A. Make sure you create a budget every single day.

B. Make sure your budget is perfect before starting. If it isn't just right, don't use it.

==C. Check your calendar so you can plan for upcoming monthly expenses.==

D. Make sure you have enough money in your savings account to pull from if you overspend.

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 The primary reason people don't budget is because they lack the behavior to stick to a budget.

True

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Your monthly rent payment is an example of a variable expense.

False

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 The best way to budget is…

A. By using a digital app

B. Creating a spreadsheet

==C. The way that works best for you==

D. On paper

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What is the envelope system?

==A. It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash.==

B. It's a systematic approach to budgeting with a digital app that organizes categories based on qualitative amounts.

C. It's a way to budget that involves putting a credit card in each envelope to use for that category.

D. It's a system that involves writing your entire budget on an envelope.

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If you have an irregular income, budgeting won't work for you.

False

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Why is budgeting so important?

A. It's a good way to make sure all your money is spent by the end of the month.

B. It helps you figure out the best way to justify purchases that maybe aren't necessary.

==C. It gives you control of your money and sets you up for financial success in the future.==

D. It helps you brush up on your math skills.