Introduction to Personal Finance
Exam Questions and Answers
Why is credit marketed heavily to consumers in the United States? - Answer- 1. The
credit industry has become extremely profitable.
2. There is strong consumer demand for big-ticket items.
3. 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.
During the Great Depression, New Deal policymakers came up with mortgage (home
loans) and consumer lending policies that convinced commercial banks that: - Answer-
Consumer credit could be profitable
True financial security is achieved when your money begins to generate an income --
your money start working for you. - Answer- True
Since you are a teenager, what you do now with money will have little effect on your
financial future. - Answer- False
Most Americans today are wealthy and will have financial security when they retire. -
Answer- False
Most Americans avoid the use of credit when it comes to buying big-ticket items like a
car or furniture for their home. - Answer- False
Learning the language of money is not that important because you will be able to
depend on financial planners to manage your money. - Answer- False
Having debt keeps you from building wealth. - Answer- True
The credit system today is structured to accommodate a state of uncertain employment
and income instability, utilizing high interest rates and fees to turn huge profits. -
Answer- True
Expensive houses and new cars are a true indication of wealth. - Answer- False
When developing a personal financial plan, one of the first things you should do is
assess your current financial situation. This includes your income, assets, and liabilities.
- Answer- True
Everyone should have the same financial plan. A budget that works for one person
should be sufficient for everyone. - Answer- False
Exam Questions and Answers
Why is credit marketed heavily to consumers in the United States? - Answer- 1. The
credit industry has become extremely profitable.
2. There is strong consumer demand for big-ticket items.
3. 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.
During the Great Depression, New Deal policymakers came up with mortgage (home
loans) and consumer lending policies that convinced commercial banks that: - Answer-
Consumer credit could be profitable
True financial security is achieved when your money begins to generate an income --
your money start working for you. - Answer- True
Since you are a teenager, what you do now with money will have little effect on your
financial future. - Answer- False
Most Americans today are wealthy and will have financial security when they retire. -
Answer- False
Most Americans avoid the use of credit when it comes to buying big-ticket items like a
car or furniture for their home. - Answer- False
Learning the language of money is not that important because you will be able to
depend on financial planners to manage your money. - Answer- False
Having debt keeps you from building wealth. - Answer- True
The credit system today is structured to accommodate a state of uncertain employment
and income instability, utilizing high interest rates and fees to turn huge profits. -
Answer- True
Expensive houses and new cars are a true indication of wealth. - Answer- False
When developing a personal financial plan, one of the first things you should do is
assess your current financial situation. This includes your income, assets, and liabilities.
- Answer- True
Everyone should have the same financial plan. A budget that works for one person
should be sufficient for everyone. - Answer- False
