Business Math Exam Test Guide Questions and Answers

An obligation of repayment owed by one party to a second party. - ANSWER-Debt Credit - ANSWER-The granting of a loan and the creation of debt; any form of deferred payment Interest - ANSWER-a fixed charge for borrowing money Economy - ANSWER-A system by which goods and services are produced and distributed Loan - ANSWER-A debt evidenced by a "note," which specifies the principal amount, interest rate and date of repayment Personal Finance - ANSWER-All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. Personal financial success is primarily the result of: - ANSWER-managing your money behavior. Which of the following statements best explains why income alone does not determine wealth - ANSWER-How much money a person makes does not dictate his or her spending and saving behavior When it comes to managing money, success is about _____% knowledge and _________% behavior. - ANSWER-20% , 80% When it comes to personal finance, the math is easy. What's challenging is managing your ____. - ANSWER-Behavior Most Americans today are wealthy and will have financial security when they retire. - ANSWER-False Having debt keeps you from building wealth. - ANSWER-True True financial security is achieved when your money begins to generate an income-your money starts working for you. - ANSWER-True How many families live pay check to pay check? - ANSWER-70% 7/10 What are the two #1 results of financial difficulty? - ANSWER-- Divorces - Male suicide