FIN 150

(Ch. 1) Which is not a key to saving money?
A. Your income
B. Making savings a habit and a priority
C. Discipline
D. Focus
A. Your income
(Ch. 1) Saving is about:
A. Discipline and making more money
B. Pride and greed
C.Emotion and contentment
D. Contentment and spending more money
C. Emotion and contentment
(Ch. 1) The Baby Steps can best be described as:
A. A systematic process for getting out of a financial mess and into building wealth
B. A series of seven sequential steps that help you plan, save, and manage money
C. A series of steps that work in good times and in bad times
D.All of the above
D. All of the above
(Ch. 1) What is the most sensible way to buy a $4,000 car?
A. Pay a down payment of $500 and use 90-days-same-as-cash to pay the balance
B. Use the sinking fund approach and save $400 a month for ten months
C. Shop around for the best interest rate before taking out a $4,000 loan
D. Ask your parents to co-sign a loan at your local credit union
B. Use the sinking fund approach and save $400 a month for ten months
(Ch. 1) Which of the following is true about the concept of saving?
A. Saving must become a priority after all bills are paid
B. You will save when you make more money
C. You must pay yourself first
D. All of the above.
C. You must pay yourself first
(Ch. 1) Which statement is true?
A. People spend more money when they pay with cash
B. When you pay with cash, you have a higher chance of negotiating a better deal
C. Using a credit card is wiser than carrying cash around
D. When you pay with cash, it is hard to negotiate a deal because you did not use store credit
B. When you pay with cash, you have a higher chance of negotiating a better deal
(Ch. 1)Using the sinking fund approach, how much do you have to save to buy a $5,000 car one year from now?
A. $275 a month
B. $324.86 a month
C. $400 a month
D. $416.66 a month
D. $416.66 a month
(Ch. 1) 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 and a mortgage?
A. 3 to 6 months of expenses
B. 10% of their credit card balance
C. $1,000
D. They should not build an emergency fund until their credit card is paid off
C. $1,000
(Ch. 1) 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?
A. A money market mutual fund is easy to access
B. Typically, a money market mutual fund averages a higher interest rate than a savings account
C. A money market mutual fund has check-writing privileges
D. All of the above
D. All of the above
(Ch. 1) Which of the following is not one of the three main reasons to save?
A. Emergency fund
B. Purchases
C. Pay off debt
D. Wealth building
C. Pay off debt
(Ch. 2) How often should you balance your checking account?
A. Once a month
B. Once a quarter
C. Once a year
D. You do not need to balance your checking account if you have online banking
A. Once a month
(Ch. 2) What is the fee for an overdrawn account called?
A. Non-Sufficient (Insufficient) Funds
B. Envelope System
C. Reconcile
D. Impulse Purchase
A. Non-sufficient (Insufficient) Funds
(Ch. 2) Which term is not associated with balancing a checking account?
A. Reconcile
B. Deposit
C. Withdrawal
D. Loan
D. Loan
(Ch. 2) Many Americans have a _______ savings rate, meaning they spend more than they make.
A. Negative
B. Positive
C. Neutral
A. Negative
(Ch. 2) On average, how long will it take before your budget begins to work effectively?
A. One month
B. Two months
C. Three months
D. Six months
C. Three months
(Ch. 2) Which of the following is not true of a zero-based budget?
A. You spend every dollar on paper before the month begins
B. The money you spend should equal the money you earn
C. Use envelopes for categories in which you tend to overspend
D. If you have extra money left at the end of the month, your budget was successful
D. If you have extra money left at the end of the month, your budget was successful
(Ch. 2) If you are struggling financially and are behind on your bills, what should you budget first?
A. New clothes
B. Spring break trip
C. Food
D. Credit card payment
C. Food
(Ch. 2) Which is a reason why people avoid making a budget?
A. Fear of what they may find
B. A budget has been used to abuse them
C. They never had a budget that really worked
D. All of the above
D. All of the above
(Ch. 2) In order to effectively manage money, you need a:
A. Credit card
B. Car loan
C. Budget
D. All of the above
C. Budget
(Ch. 2) What is used when you do not have a predictable monthly income?
A. Lump Sum Planning Form
B. Irregular Income Form
C. Budget
D. ATM/Debit Card
B. Irregular Income Form
(Ch. 2) When using a bank statement to balance a checking account you:
A. Compare your check register with the bank statement side by side.
B. Compare each transaction and make check marks on both lists.
C. List any debits or deposits that are present in the register, but not present in the bank statement and calculate those into your bank statement.
D. Compare your register balance to the statement balance.
E. All of the above.
E. All of the above
(Ch. 2) Once you set up your budget, you fill each envelope with the money allotted to the categories listed on your budget. When the money in each envelope is gone, it is okay to pull more money out of the bank or use a debit card to supplement.
A. True
B. False
B. False, (Once you set up your budget, you fill each envelope with the money allotted to the categories listed on your budget. When the money in each envelope is gone, it is gone! That means you cannot pull more money out of the bank or use a debit card to supplement.)
(Ch. 3) On average, payday lending, cash advance and title pawn loans cost the consumer:
A. 400% or more annually
B. Nothing but the fee if you pay back the loan within 30 days
C. Three times the APR of an average credit card
D. 100-250% annually
A. 400% or more annually
(Ch. 3) Which statement is not true about debt consolidation?
A. You end up with only one payment to manage
B. You end up saving money because you get a lower interest rate
C. Smaller payments mean more time in debt
D. Your lower interest loans also get rolled into the deal so you end up with minimal savings
B. You end up saving money because you get a lower interest rate
(Ch. 3) Kevin has the following debts: Home Equity Loan, $24,000; Visa, $1,200; Student Loan, $5,000; Car, $12,000. How should he prioritize his debt snowball?
A. Home Equity Loan, Visa, Student Loan, Car
B. Visa, Car, Student Loan, Home Equity Loan
C. Visa, Student Loan, Car, Home Equity Loan
D. Cannot prioritize the debt snowball without knowing the interest rates on each debt
C. visa, student loan, car, home equity loan
(Ch. 3) Which of the following is true about using credit?
A. It is the same as using cash
B. When using credit, one spends less
C. When using credit, one spends more
D. Using credit neurologically registers as pain
C. When using credit, one spends more
(Ch. 3) If 80% of millionaires are first generation rich, than one can conclude:
A. They started with nothing, did smart stuff, and became millionaires
B. They fell for the debt myths that are common in society
C. They inherited money from their family
D. They are rich so they can do whatever they want with their money
A. They started with nothing, did smart stuff, and became millionaires
(Ch. 3) In which type of loan would you use your house for collateral?
A. Adjustable Rate
B. Home Equity
C. Balloon Mortgage
D. 15-Year Fixed
B. Home equity
(Ch. 3) Payday lending and cash advance companies are aggressively targeting which group of people?
A. Teens
B. Elderly
C. College graduates
D. Military
D. Military
(Ch. 3) Which is true about the practice of marketing credit cards to young adults?
A. Young adults are the number one target of credit card companies in America today
B. Brand loyalty to your first card is incredible, so credit card companies work hard to win you over first
C. Colleges are losing more students to credit card debt problems than to academic failure
D. All of the above
D. All of the above
(Ch. 3) Why do people think that the home equity loan is a good idea?
A. There is a good tax refund
B. It serves as a substitute for an emergency fund
C. It is a way to consolidate debt
D. All of the above
D. All of the above
(Ch. 3) Which is not true about making purchases with credit cards?
A. You spend 12-18% less when using a credit card
B. You spend 12-18% more when using a credit card
C. You are less likely to experience neurological “pain” when purchasing with a credit card
D. None of the above
A. You spend 12-18% less when using a credit card
(Ch. 4) How many employees do the majority of businesses in this country employ?
A. fewer than 100
B. more than 100
C. fewer than 50
D. fewer than 25
A. Fewer than 100
(Ch. 4) The average person will have as many as ___ jobs in their lifetime.
A. 5
B. 10
C. 15
D. 20
D. 20
(Ch. 4) The average job in America lasts for:
A. 3 years
B. 5 years
C. 2.1 years
D. 2 years
C. 2.1 years
(Ch. 4) During college you have 2 goals, stay in school and:
A. meet new friends
B. stay out of debt
C. meet someone to marry
D. make a lot of money
B. Stay out of debt
(Ch. 4) Which personality trait is detail-oriented, analytical, and logical?
A. Dominant
B. Influencing
C. Steady
D. Compliant
D. Compliant
(Ch. 4) As you grow, you will improve most in the areas you are _______ in:
A. strongest
B. weakest
C. happiest
D. unhappiest
A. Strongest
(Ch. 4) Which personality trait is task-oriented, bottom-line-focused, and direct?
A. Dominant
B. Influencing
C. Steady
D. Compliant
A. Dominant
(Ch. 4) Which personality trait is talkative, expressive, and good at entertaining?
A. Dominant
B. Influencing
C. Steady
D. Compliant
B. Influencing
(Ch. 4) When looking for a job, find something that blends your:
A. skills
B. personality traits
C. dreams
D. all of the above
D. All of the above
(Ch. 4) Which personality trait is loyal, calm, and understanding?
A. Dominant
B. Influencing
C. Steady
D. Compliant
C. Steady
(Ch. 5) Which of the following is not a rule of the budget meeting?
A. It should last an hour
B. Both the nerd and the free spirit must attend
C. The nerd makes the budget
D. The free spirit must give input
A. It should last an hour
(Ch. 5) Someone who is less organized and enjoys spontaneity:
A. Men
B. Free Spirit
C. Women
D. Nerd
B. Free spirit
(Ch. 5) This describes what is important to you:
A. Value System
B. Accountable
C. Fiscal
D. Self-Esteem
A. Value system
(Ch. 5) Free spirits and nerds differ in how they:
A. Relate to time
B. Deal with numbers
C. Relate to a budget
D. All of the above
D. All of the above
(Ch. 5) Someone who does a lot of calculations and prefers planning:
A. Women
B. Nerd
C. Free Spirit
D. Men
B. Nerd
(Ch. 5) We are happiest and most fulfilled when we are:
A. spending
B. serving
C. giving
D. both b and c
D. Both B & C
(Ch. 5) Which is not true about giving?
A. Giving helps you become others-focused
B. Giving is one of the most fun things you can do with your money
C. The minimum you should give is 25% of your income
D. You should cover your basic needs before giving to others
C. The minimum you should give is 25% or more
(Ch. 5) Which is true in terms of singles and couples when it comes to money?
A. Singles are less prone to impulse buying than couples because they do not have to be held accountable
B. Singles are more prone to impulse buying than couples because they do not have to be held accountable
C. Couples are more prone to impulse buying because each spouse has to be accountable to the other
D. Couples are never prone to impulse buying because each spouse has to be accountable to the other
B. Singles are more prone to impulse buying than couples because they do not have to be held accountable
(Ch. 5) Which is true about nerds and free spirits?
A. Free Spirits are always spenders and nerds are always savers
B. Nerds are always spenders and free spirits are always savers
C. Both nerds and free spirits can be spenders or savers
D. Both a and c
C. Both nerds and free spirits can be spenders or savers
(Ch. 5) In which of the following ways are men and women different when relating to money?
A. Men view the emergency fund as boring; women view it as security
B. Men view the emergency fund as the key to their financial plan; women view it as not being sophisticated enough
C. Women like to hunt down deals when shopping; men like to negotiate
D. All of the above
A. Men view the emergency fund as boring; women view it as security