Financial literacy Test 1 questions and
correct answers passed
Money set aside and left alone for a "rainy day". - ANS ✔✔emergency fund
When a person intentionally invests money in a place where it can earn more money - ANS
✔✔wealth building
Which of the following is not a reason your emergency fund should be kept in a speedster
savings account away from your spending money? - ANS ✔✔so that your emergency fund
savings can ear a lot of interest
The persistent rise in the cost of goods and services - ANS ✔✔inflation
Percentage paid to a lender for the use of borrowed money, or the percentage earned on
invested principal - ANS ✔✔interest rate
You should hold off on investing for retirement until you have college or other post-secondary
education paid for. - ANS ✔✔True
For which of the following should you save? - ANS ✔✔Purchases, wealth building, emergency
fund
Your own record of all your transactions - ANS ✔✔check register
The following are guidelines for budgeting with an irregular income except: - ANS ✔✔budgeting
with an irregular income is no different than budgeting with a regular income
, A written cash flow plan - ANS ✔✔budget
A summary of all the income and outgo over a certain time period - ANS ✔✔cash flow
statement
Percentage of Americans living paycheck to paycheck: - ANS ✔✔70%
Budgeting is crucial to your financial success - ANS ✔✔true
The number-one cause of divorce in North America is stress and disagreements over money -
ANS ✔✔true
To match your bank statement with your checkbook - ANS ✔✔reconcile
Groceries are a:
A
fixed expense
B
variable expense
C
discretionary expense
D
intermittent expense - ANS ✔✔b. variable expense
"Pay yourself first" means that you should assign a portion of your income to saving and
investing every month - ANS ✔✔true
correct answers passed
Money set aside and left alone for a "rainy day". - ANS ✔✔emergency fund
When a person intentionally invests money in a place where it can earn more money - ANS
✔✔wealth building
Which of the following is not a reason your emergency fund should be kept in a speedster
savings account away from your spending money? - ANS ✔✔so that your emergency fund
savings can ear a lot of interest
The persistent rise in the cost of goods and services - ANS ✔✔inflation
Percentage paid to a lender for the use of borrowed money, or the percentage earned on
invested principal - ANS ✔✔interest rate
You should hold off on investing for retirement until you have college or other post-secondary
education paid for. - ANS ✔✔True
For which of the following should you save? - ANS ✔✔Purchases, wealth building, emergency
fund
Your own record of all your transactions - ANS ✔✔check register
The following are guidelines for budgeting with an irregular income except: - ANS ✔✔budgeting
with an irregular income is no different than budgeting with a regular income
, A written cash flow plan - ANS ✔✔budget
A summary of all the income and outgo over a certain time period - ANS ✔✔cash flow
statement
Percentage of Americans living paycheck to paycheck: - ANS ✔✔70%
Budgeting is crucial to your financial success - ANS ✔✔true
The number-one cause of divorce in North America is stress and disagreements over money -
ANS ✔✔true
To match your bank statement with your checkbook - ANS ✔✔reconcile
Groceries are a:
A
fixed expense
B
variable expense
C
discretionary expense
D
intermittent expense - ANS ✔✔b. variable expense
"Pay yourself first" means that you should assign a portion of your income to saving and
investing every month - ANS ✔✔true
