consumers

at your age, a fully funded emergency fund should be: a. $500 b. $5,000 c. $100 d. $1,000

a

identify which method companies are using to compete for your money: car salesman a. personal selling b. financing c. media d. product selling

a

rent is a: a. fixed expense b. variable expense c. discretionary expense d. intermittent expense

a

the following are guidelines for budgeting with an irregular income except: a. budgeting with an irregular income is no different than budgeting with a regular income b. make a list of all of your expenses for the month ahead c. when your check comes in, spend your money all the way down the list d. prioritize the list in order of importance

a

the total estimated student loan debt outstanding (unpaind) is over: a. 1 trillion b. $1 billion c. $7 trillion d. $10 thousand

a

this principle suggests that a certain amount of money today has a different buying power than the same amount of money in the future. this is due to both the opportunity to earn interest on the money and because inflation will drive prices up, thereby changing the "value" of the money. a. time value of money b. opportuntiy cost c. interest rate d. inflation

a

what does it mean to have a negative savings rate? a. spending more money than you make a acquiring debt b. having no savings at all c. saving for something that is a want instead of a need d. having a fully funded emergency fund

a

whcih of the follwoing is not a benefit of understanding your own money personality? a. knowing your money personality allows you to excuse excessive spending because it is simply part of your nature. b. once you know your money personality, you can develop a financial plant that works fo you c. recognizing who you are allows you the opportunity to grow and learn. d non of the above

a

when it comes to managing money, __________% knowledge and _____________% behavior a.) 20,80 b.)60,40 c.) 80,20 d.) 50,50

a

which is not a "power over purchase," tatics? a. compare your purchase with a friend's b. consider the opportunity cost c. wait over night d. seek counsel

a

which of the following is not a credit myth? a. borrowing money can have serious consequences and prevent you from building wealth b. you have "arrived" financially once you get approved for a credit card c. the lottery and other forms of gambling will make you rich. d. debt is a tool should be used ot creat prosperity

a

which of the following is not a form of product positioning? a. financing b. shelf positioning c. packaging and color d. brand recognition

a

which of the following is not a reason your emergency fund should be kept in a separate savings accound away from your spending money? a. so that your emergency fund savings can earn a lot of interest b. so that it is not too easy to access c. so that it is clear what money is only to be used for emergencies. d. so that you do not get your spending and saving money confused

a

which of the following statements about college financial aid is false? a. scholarships ar only for highest academic achievers b. grants free money c. the free application for federal student aid (FASFA) is the first step to receiving any kind of financial aid d. many businesses have scholarships for employees' children

a

which of the following statements best explains why income alone does not determine wealth? a. how much money a person makes does not dictate his or her spending and saving behavior. b. investing is the only factor that contributes to wealth building c. only people who are natural savers can become wealthy d. income alone does determine a person's wealth

a

which of the following statements is false? a. a budget is meant to summarize the saving spending that has taken place over the past year. b. the cash flow statement is reflective of what has already taken place. c. a cash flow statment summarizes all of the income and outgo (spending) over a certain time period d. a budget is a written plan for saving and spending

a

which of the following statements is false? a. students rarely drop out of college due to financial trouble b. research shows that working more than 20 hours a week may affect your grade nefatively c. research shows that students who work up to 20 hours a week have the highest grade point averages d. on-campus jobs may pay you dircetly o rpay toward your tuition bill

a

which of the following things cannot be done with a debit card but can be done with a credit card? a. go into debt b. purchases in airline ticket c. purchase something online d. rent a car

a

why is having a fully funded emergency fund so important when it comes to your financial well-being? a. the purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security. b. as long as you have a good-paying job, you really don't need an emergency fund c. the purpose of an emergency fund is to have money set aside for large purchases, like vacations. d. none of the above

a

wise college plan does not include: a. finding the most expensive, prestigious college so that you can impress future employers b. creating a budget and starting to save now c. shopping around for the most appropriate, low-cost academic option for your career choice d. scoring well on the ACT or SAT

a

dave tells the story of a man who brought his dream car, drove it home, but then returned it the next day after some money calculations. story is an example of: a. brand recognition b. opportunity cost c. "be backs" in the car business d. buyer's remorse

b

four common marketing tactics are: a. repetition, buyer's remorse, product positioning, significant purchase b. branding, personal selling, opportunity cost, financing c. competition, financing, opportunity cost, personal selling d. personal selling, financing, repetition, product positing

b

groceries are a: a. fixed expense b. variable expense c. discretionary expense d. intermittent expense

b

identify which method companies are using to compete for your money: "90-days-same-as-cash" a. personal selling b. financing c. media d. product selling

b

instead of borrowing money for large purchases, you should set money aside in a ___ over time and pay with cash. a. credit card fund b. sinking fund c. mortgage fund d. emergency fund

b

percentage of americans living paycheck to paycheck: a. 50 b. 70 c. 40 d. 25

b

the purpose of advertising is to: a. personal selling b. making the customer do product research c. repetition d. providing financing options

b

using the sinking fund approach, how much do you have to save each month to buy a $4,800 car one year from now? a.$275 b.$400 c.$500 d.$300

b

when a company places an ad and offers no interest on your purchase for three years: a. they care not interested in making a profit b. the cost of the financing is built into the price of the item c. they are showing their appreciation to you by giving you fee money d. all of the above

b

which of the following account records would have the most current balance? a. account balance statement from the atm b. your own account register c. your monthly bank statement d. all of these records will have accurate account balance

b

which of the following best explains why students should learn about personal finance? a.) learing to manage money will help you achieve a profitable career. b.) learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future c.) personal finance skills are better learned through trial and error. d.) personal finance skills are highly complex and require a great deal of time to learn.

b

which of the following is not a need? a. utilites b. eating out c. housing d. food

b

which of the following statements best describes how americans are being outsmarted by banks and other lenders? a. we are driven by consumerism b. 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. c. buying things on credit has become acceptable in our culture. d. we are taught that we can buy happiness.

b

which of the following statements is false? a. the u.s congress enacted the fair credit reporting act to address concerns over consumer credit report accuracy, privacy and fairness b. uner FCRA, consumers are allowed to receive one free credit report every five years c. under FCRA, creditors must notify consumers if they deny credit based on a credit report file, and they must also tell the consumer which of the three credit bureaus provided the report. d. prior to the FRCA, consumers were unable to challenge errors in their credit reports

b

which of the following steps is the first foundation? a. build wealth and give b. save a $500 emergency fund c. get out a debt d. pay cash for your car

b

why should interest earned not be a factor with your emergency fund? a. interes-bearing accounts at banks earn a high rate of interest, therefore, interest is not a concern b. the emergency fund is not intended to grow wealth c. inflation can eat up the interest earned, d. non of the above

b

during the great depression, new deal policymakers came up with mortgage (home loans) and consumer lending policies that convinced commercial banks that: a.) consumer credit was not profitable industry b.) consumers would not be willing to use credit, since borrowing money for large purchases had not previously been an option for the middle class c.) consumer credit could be profitable d.) they would not be able to compete with loan sharks in the industry of consumer lending

c

eating out is a: a. fixed expense b. variable expense c. discretionary expense d. intermittent expense

c

identify which method companies are using to compete for your money: tv commercial a. personal selling b. financing c. media d. product selling

c

indvidual account information is removed from your credit report seven year after the last activity on the account, execpt for chapter 7 bankruptcy, which stays on your credit report for: a. 1 year b. 20 years c. 10 years d. 5 years

c

percentage of college students that graduate with student loans: a. 25% b.90% c.66% d.30%

c

personal financial success is primarily the result of: a. winning the lottery b. inheriting money from your parents c. managing your money behavior generous welfare and unemployment programs

c

saving is about.. a. contentment and earning more money b. contentment and emotion c. making more money and discipline d. pride and greed

c

the average repayment period for a student loan is: a. 5 years b. 15 years c. 10 years d. 20 years

c

what is paycheck garnishment? a. a legal procedure for dealing with debt problems of individuals and businesses b. process by which the holder of a mortgage sells the property of a homeowner who has fallen behind on payments c. process of taking something back for failure to make payments d. a court-ordered attachment that allows a lender to take monies owed directly from a borrower's paycheck

c

which of the following is not a good idea for getting of of debt? a. get a part-time job or work overtime b. sell something c. borrow money from your parents to pay for the debt d. quit borrowing money

c

which of the following is not a good option when it comes to paying for your education? a. get a part-time job b. fill out the FAFSA c. ask your parents to take out a loan d. plan ahead

c

which of the following is not a recod-keeping feature you could expect from your bank? a. a monthly account statements b. a reconciliation sheet c. customer service reconiles your account for you d. an account register

c

which of the following is not a true statement? a. as banks made high profits, they were willing to lend more money to consumers b. americans learned to borrow amidst post WW2 prosperity c. the credit insutry in america has not changed much since 1917 d. after 1970, consumer debt skyrocketed

c

which of the following is not one of the basics of budgeting? a. pay yourself first by saving b. live on less than you make c. stick your budget unless something unexpected happens d. make it a priority to give.

c

which of the following is not one of the three basic reasons for saving money? a. emergency fund b. large purchases c. have money available to lend to friends d. build wealth

c

which of the following is not recommended in the debt snowball method of getting out of debt? a. attack your debt with intensity b. list your debts in order from smallest to largest balance and focus on paying the smallest debt off first c. every extra dollar you get should be thrown at the largest debt first d. every time you pay off a debt, you add its old minimum payment to your next debt payment

c

which of the following is something that a typical millionaire would do? a. lease a new car b. carry debt c. replace things that are not broken d. spend less money than he or she makes

c

which of these is not a key to saving money? a. discipline b. making saving a habit and a priority c. focus d. your income

c

Which of the following is not a reason credit is marketed heavily to consumers in the United States? a.) The credit industry has become extremely profitable b.) there is strong consumer demand for big-ticket items c.) the use of credit is not socially accepted in the United States d.) since 1920, credit laws in the United States have been relaxed in an attempt to create a mainstream alternative to loan sharks for the working class

c.)

a credit score is intended to measure: a. the risk of your not repaying debt b. your income level c. the amount of money you have in the bank d. your financial success

d

a written budget, if followed, removes_____ from your finances a. overspending b. guilt c. management by crisis d. all of the above

d

car repairs are a: a. fixed expense b. variable expense c. discretionary expense d. intermittent expense

d

doing a budget does not: a. make your money go further b. show if you are overspending in an area c. make overspending more likely d. remove guilt and shame sometimes associated with a purchaes

d

for which of the following should you save? a. wealth building b. purchases c. emergency fund d. all of the above

d

identify which method companies are using to compete for your money: reputation for holding its values a. personal selling b. financing c. media d. product selling

d

if you do not have FICO score, what factors will determine whether or not you qualify for a mortgage? a. amount of your down payment and employment history b. history of rental and utility payments c. you cannot get a mortgage without a credit history d. a and b

d

key components of financial planning include all of the following except: a.) regularly monitor and ressess your financial plan b.) write out a detailed plan for accomplishing your goals c.) replace money myths with money truths d.) allow your financial planner to make your major money decisions

d

the fourth foundation is: a. build a $500 emergency fund b. pay cash for your car c. build wealth and give d. pay cash for college

d

the saving habits of ben and arthur best illustrate which pinciple of saving? a. rate and return matters b. the amount of ititial investment is the key c. the length of time money is invested matters. d. both a and c

d

the widespread financial insecurity of americans is primarily because. a. government programs are unavailable to help people when they are disabled or experience unemployment b. the incomes of americans are low c. most americans save a high proportion of their income d. the saving rate of americans is low and many borrow in order to spend more than they earn.

d

the zero-based budget is the best method of budgeting because: a. a zero-based budget allows less money fo r wants b. sticking to a zero-based budget requires less discipline c. this type of budget is less complicated than other types of budgets d. the zero-baed budget ensures that every dollar you make is assigned a specific purpose.

d

what concept is best explained by the statement, "money spent here cannot be spent there" a. delay dratification b. significant purchases c. law of diminishing return d. opportunity cost

d

what factors affect a credit score? a. duration of debt b. new debt c. type of debt d. all of the above

d

what is a safe assumption to make regarding companies and their marketing practices? a. companies spend millions dollars and do extensive research on advertising b. companies use all angles to aggressively compete for your money c. companies know that competition is fierce for consumers dollars d. all of the above

d

when it comes to personal finance, the math is easy. whats challenging is managing your _____. a.) income b.) friends c. bank account d. behavior

d

which of the following are ways that you can invest in yourself? a. find a mentor b. surrond yourself with people who have similar goals and ambitions as you c. read books d. all of the above

d

which of the following could be negative consequence of taking out student loans? a. not having the freedom to be a stay- aunt-home parent because of student loan payments b. having to delay investing and saving for your future because of student loan payments c. not having flexibility in your career options because of student loan payments d. all of the above

d

which of the following is a consequence of overdrawing your checking account. a. overdraft fee your bank b. stress from money mismanagement c. bounced check fee from the store d. all of the above

d

which of the following is a conswquence of spending more than you make a. missed opportunity to save and invest. b. stress c. a cycle of debt d. all of the above

d

which of the following is a reason that people dont save money? a. they lack discipline b. they lack focus c. they do not live on a budget d. all of the above

d

which of the following is a sign that your identity may have been stolen? a. your credit report shows accounts you didnt open b. bank and billing statements dont arrive on time c. a cal from a collection agency about a debt you didnt incur d. all of the above

d

which of the following is not a factor in becoming money smart. a. learn the language of money b. manage your behavior with money c. have knowledge of basic math d. learn how to read your credit card statements

d

which of the following is not a factor is not a factor in determining a FICO score? a. using credit cards b. taking out a mortgage on a house c. getting a personal loan from a bank d. paying cash for all purchases

d

which of the following is not a recommended step in the drive free method of purchasing a car? a. place your savings in a mutual fund so that your money can make more money b. start with an inexpensive car and gradually move up in car value as your savings increase c. plan your puchase in advance using the sinking fund method of saving d. explore new car dealerships for the best interest rate

d

which of the following is not recommended when you are cash-flowing your college education? a. make sure you have an emergency fund b. live on a zero-based budget c. work and save money ovr the summer months d. attend an out-of -state school

d

which of the following is the most cost-effective option for purchasing a home? a. get a 15-year mortgage with a 5% down payment b. get a 30-year mortgage so that you get the lowest possible payments c. get a 30-year mortgage with a 20% down payment d. the most ideal way to buy a hoouse is with 100% down; if htat is not an option, you should get no more than a 15-year, fixed rate mortgage with a down payment of at least 10%.

d

which of the following should you consider when making a significant purchases? a. if you cant pay with cash, dont buy you b. the opportunity cost c. your buying motives d. all of the above

d

which of the following statements is false? a. an associate's degree is a two-year degree that can offer specialized training and a flexible schedule that allows you to work while you earn your degree. b. on-th- job training often combines a professional trainer,hands-on activities and formal classroom traingin c. students who are looking to learn specific skills can look into free or low-cost certifications found online, at community colleges, or through government-funded programs d. all high-paying careers require a four-year college degree

d

which of the following statements is false? a. debt is owing anything to anyone for any reason b. our culture accepts student loan debt as normal and sometimes even refers to it as good debt c. millions of people cant afford to make their student loan payment every month. d. a student loan is an award

d

why was the use of credit uncommon prior to 1917? a.) laws prevented lenders from charging high interest rates b.) borrowing money was generally not socially acceptable c.) lending money to others was not profitable d.)all of the above

d

you should visit your college's financial aid office if: a. a medical situation has come up b. our parents financial situation has changed c. you have any problems with the financial aid application process d. all of the above

d