Busn 117

Even though a regular savings account is suitable when you are saving $500 for your beginner emergency fund, why is a money market mutual fund a better place to keep your completed emergency fund?
D. All of the above
How much money should a couple who makes $54,000 a year have in their beginner emergency fund if they have a $3,000 credit card bill balance?
C. $1,000
Saving is about:
C. Discipline and contentment
Which statement is true?
B. When you pay with cash, you have a higher chance of negotiating a better deal
Which of the following is true about the concept of saving?
C. You must pay yourself first.
What is the most sensible way to buy a $4,000 car?
B. Use the sinking fund approach and save $400 a month for ten months
Which is not a key to saving money?
A. Your income being more than $75,000 annually
The Baby Steps can best be described as:
D. All of the above
Which of the following is not one of the three main reasons to save?
C. Pay off debt
Using the sinking fund approach, how much do you have to save to buy a $5,000 car one year from now?
D. $416.66 a month
In order to effectively manage money, you need a :
C. Budget
Many Americans have a _____ saving rate, meaning they spend more than they make.
A. Negative
On average, how long will it take before your budget begins to work effectively?
C. Three Months
Which is a reason why people avoid making a budget?
D. All of the above
If you are struggling financially and are behind on your bills, what should you budget first?
C. Food
Which term is not associated with balancing a checking account?
D. Loan
Which of the following is not true of a zero-based budget?
D. If you have extra money left at the end of the month, your budget was successful
What is the fee for an overdrawn account called?
A. Non-Sufficent (Insufficient) Funds
Bounced checks are a sign of ______ living.
B. Crisis
How often should you balance your checking account?
A. Once a month
Which of the following it true about using credit?
C. When using credit, one spends more
Payday lending and cash advance companies are aggressively targeting which group of people?
D. Military
If 80% of millionaires are first-generation rich, then one can conclude,
A. They started with nothing, did small stuff and became millionaires
On average, payday lending, cash advance and title pawn loans cost the consumer:
A. 400% or more annually
Which statement is generally not true about debt consolidation?
B. You end up saving money because you get a lower interest rate
Which is true about the practice of marketing credit cards to young adults?
D. All of the above
Which is not true about making purchases with credit cards?
A. You spend 12-18% less when using a credit card
Why do people think that the home equity loan is a good idea?
D. All of the above
Kevin has the following debits: Home Equity Loan, $24,000; Visa, $1,200; Student Loan, $5,000; Car, $12,000. How should he prioritize his debt snowball?
C. Visa, Student Loan, Car, Home Equity Loan
Which type of loan can be used for debt consolidation(even though it’s not a good idea)?
B. Home Equity
The average person will have as many as _____ jobs in their lifetime.
D. 20
How many employees do the majority of businesses in this country employ?
A. Fewer than 100
The average job in American lasts for:
C. 2.1 years
As you grow, you will improve most in the areas you are _______ in:
A. Strongest
When looking for a job, find something that blends your:
D. All of the above
During college you have two main goals: stay in school and ______
B. Stay out of debt
Which term below, as discussed in your textbook, relates to the person within a couple who likes to deal with numbers and making budgets?
C. Nerd
Which term below, as discussed in your textbook, relates to the person within a couple who likes to go with the flow of life and generally doesn’t like making budgets?
A. Free Spirit
True or false: The number one cause of divorce given by couples who divorce within the first seven years of marriage is money fights.
A. True
Problems single people might deal with include:
D. All of the above
Which is true in terms of singles and couples when it comes to money?
B. Singles are more prone to impulse buying than couples because they don’t have to be held accountable.
In which of the following ways can men and women different when relating to money?
A. Men view the emergency fun as boring; women view it as security
Free spirits and nerds differ in how they:
D. All of the above
We’re happiest and most fulfilled when we’re
D. Both b and c
Which of the following is not a rule of the budget meeting?
A. It should last at least an hour
Which is true about nerds and free spirits?
C. Both nerds and free spirits can be spenders or savers
Which is not true about giving?
C. The minimum you should give to others is 25% of your income
Someone who is less organized and enjoys spontaneity:
B. Free Spirit
Someone who does a lot of calculations and prefers planning:
B. Nerd
This describes what is important to you
A. Values System