FIN 101 - CH 1 - Quiz

According to the Internet reading, New Rules of Personal Finance, what is your SECOND most important investment?

Education

CPI stands for consumer purchasing index.

False

GDP refers to the total earnings of American workers during a year.

False

The most important aspect of financial planning for young people concerns:

Job or Career

According to the Internet reading, Financial Mistakes Young People Make, should you ever open a bank account or have a joint credit card with a "significant" other (meaning "a person to whom you are not legally married")?

No

In the Internet Reading article Four Obstacles to Attaining Your Goals, which of the following is one of those obstacles?

Procrastination

One of the primary characteristics of inflation is:

Rising consumer prices

According to the Internet reading, 10 Financial Mistakes That Lead to the Poor House, what is the "single biggest influence on your financial success"?

Spending Habits

A decrease in the GDP (gross domestic product) would indicate that our economy is:

Stagnation

According to the Internet reading, 10 Steps to Financial Security, what should you make sure of regarding your "Lifestyle Costs"?

That you lifestyle costs lag behind your income growth.

The agency that controls the U.S. money supply and interest rates is:

The Federal Reserve Bank

Financial planning is a continuing, life-long process.

True

Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or group.

True

According to the Internet reading, Typical Money Mistake ..., which of the following is NOT the name of a "credit bureau"?

Visa Inc.

Your income is directly related to your: a) geographic location b) age c) education d) all of these

d) all of these

According to the Internet Reading, Young Adults, "If you pay only the minimum amount due on a $1,000 computer, about $20 a month, your total cost at an APR of more than 18 percent can be close to $3,000". How long will it take to pay this off?

19 years

According to the Internet reading, Why Care About Personal Finance, what is the approximate cost to raise a child born in 2013 to the age of 18?

Around $250,000

This is a measure of inflation based on changes in the cost of a market basket of consumer goods and services:

CPI (Consumer Price Index)

According to the Internet reading, 10 Commandments, what is the first commandment (most important)?

Develop a marketable skill.

The average propensity to consume refers to the:

Dollars of income spent for current consumption and not savings.