Financial Literacy Final Exam Questions
With 100% Actual Answers.
Key components of financial planning include all of the following except:
Write out a detailed plan for accomplishing your goals
Replace money myths with money truths
Buy on credit whenever possible
Regularly monitor and re-assess your financial plan - Answer Buy on credit whenever possible
Which of the following statements best describes how Americans are
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
We are taught that we can buy happiness
Buying things on credit has become acceptable in our culture
We are driven by consumerism - Answer 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
Personal financial success is primarily the result of:
Managing your money behavior
Winning the lottery
Generous welfare and unemployment programs
Inheriting money from your parents - Answer Managing your money behavior
Which of the following statements best explains why income alone does not determine wealth?
Investing is the only factor that contributes to wealth building.
Income alone does determine a person's wealth
Only people who are natural savers can become wealthy.
How much money a person makes does not dictate their spending and saving behavior - Answer
How much money a person makes does not dictate their spending and saving behavior
Which of the following is a consequence of spending more than you make?
Missed opportunity to save and invest
Stress
A cycle of debt
All of the above - Answer All of the above
, When it comes to managing money, success is about _____% knowledge and____% behavior. -
Answer 20, 80
The widespread financial insecurity of Americans is primarily because: - Answer The savings
rate of Americans is low and many borrow in order spend more than they earn
Why was the use of credit uncommon prior to 1917?
Laws prevented lenders from charging high interest
Borrowing money was generally not socially
Lending money to others was not
All of the above - Answer All of the above
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your -
Answer Behavior
During the Great Depression, New Deal policy makers came up with mortgage (home loans) and
consumer lending policies that convinced commercial banks that: - Answer Consumer credit
could be profitable
What is the First Foundation? - Answer Save a $500 emergency fund
Instead of borrowing money for large purchases, you should set money aside in a ________
over time and pay with cash - Answer Sinking Fund
This principle suggests that a certain amount of money today has 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 up, thereby changing the ʺvalueʺ of the money. -
Answer Time value of money
For which of the following should you save?
Purchases
Wealth
Emergency
All of the above - Answer All of the above
At your age, a fully funded emergency fund should be: - Answer $500
With 100% Actual Answers.
Key components of financial planning include all of the following except:
Write out a detailed plan for accomplishing your goals
Replace money myths with money truths
Buy on credit whenever possible
Regularly monitor and re-assess your financial plan - Answer Buy on credit whenever possible
Which of the following statements best describes how Americans are
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
We are taught that we can buy happiness
Buying things on credit has become acceptable in our culture
We are driven by consumerism - Answer 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
Personal financial success is primarily the result of:
Managing your money behavior
Winning the lottery
Generous welfare and unemployment programs
Inheriting money from your parents - Answer Managing your money behavior
Which of the following statements best explains why income alone does not determine wealth?
Investing is the only factor that contributes to wealth building.
Income alone does determine a person's wealth
Only people who are natural savers can become wealthy.
How much money a person makes does not dictate their spending and saving behavior - Answer
How much money a person makes does not dictate their spending and saving behavior
Which of the following is a consequence of spending more than you make?
Missed opportunity to save and invest
Stress
A cycle of debt
All of the above - Answer All of the above
, When it comes to managing money, success is about _____% knowledge and____% behavior. -
Answer 20, 80
The widespread financial insecurity of Americans is primarily because: - Answer The savings
rate of Americans is low and many borrow in order spend more than they earn
Why was the use of credit uncommon prior to 1917?
Laws prevented lenders from charging high interest
Borrowing money was generally not socially
Lending money to others was not
All of the above - Answer All of the above
When it comes to personal finance, the math is easy. Whatʹs challenging is managing your -
Answer Behavior
During the Great Depression, New Deal policy makers came up with mortgage (home loans) and
consumer lending policies that convinced commercial banks that: - Answer Consumer credit
could be profitable
What is the First Foundation? - Answer Save a $500 emergency fund
Instead of borrowing money for large purchases, you should set money aside in a ________
over time and pay with cash - Answer Sinking Fund
This principle suggests that a certain amount of money today has 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 up, thereby changing the ʺvalueʺ of the money. -
Answer Time value of money
For which of the following should you save?
Purchases
Wealth
Emergency
All of the above - Answer All of the above
At your age, a fully funded emergency fund should be: - Answer $500
