FCS 340 EXAM 1 QUESTIONS & ANSWERS
Which of the following is not identified as a purpose of the book? - Answers -Teach you
to accumulate wealth.
The authors suggested four answers to the question, "Why should I learn about family
finance?" Which is not one of the four reasons? - Answers -Community: Becoming a
stronger citizen and member of your community.
The second important question the authors suggested you ponder: "What are the
profound principles upon which the stewardship perspective is based?" Which is not
one of the four stewardship principles? - Answers -Discipleship
Of the four stewardship principles, if followed wisely, which is our gift back to God? -
Answers -Accountability
The text suggests creating a budget that includes at least a percent allocation to long-
term savings. - Answers -10
What does the author believe is the biggest financial mistake made by recent
graduates? - Answers -Buying a house beyond their means.
Most financial planners recommend worth of living expenses set aside in a savings or
checking account as an emergency fund. - Answers -three to six months
In the reading, the story of Elder Robert D. Hales and his new bride was shared. He
was in the air force and they'd missed Christmas together. What did he want to buy his
wife? - Answers -A dress
What budget category do the authors suggest commonly gets overlooked? - Answers -
Miscellaneous
The authors recommend the investing mantra "get rich slowly." They recommend
avoiding which of the following strategies? - Answers -Speculation
Which of the following statements about compound interest were made in the reading?
Select all that apply. - Answers -A marvelous work and a wonder
Eighth wonder of the world
Interest earning interest
What should setting goals involve? - Answers -Process of understanding yourself and
your family.
Trying to understand what God wants you to accomplish.
What does the "S" in SMART goals refer to? - Answers -Specific
, Which of the following financial elements are part of developing a plan of action? Select
all that apply. - Answers -Budget
Planning for big-ticket purchases
Plan for managing debt
Plan for insurance
Investment plan
Plan for retirement
Which of the following are Principles of Provident Living? Select all that apply. -
Answers -Being content with what you have
Avoiding excessive debt
Preparing for rainy-day emergencies
All family financial records should be kept forever. - Answers -False
What is not an example of a fixed expense? - Answers -Food
What would not be categorized as a variable expense? - Answers -Insurance payment
One of the most often neglected budget categories is miscellaneous (the category for
unexpected expenses). - Answers -True
Which of the following principles should guide effective family budgets? Select all that
apply. - Answers -Spend less than you earn.
Keep good records.
Use a budgeting method that meets individual and family needs.
"Mad money" should be a budget category even though you aren't responsible for how it
is spent. - Answers -True
For those who find living within a budget difficult, which of the following is the most
straightforward method? - Answers -Envelope method
Attributes of the best budgeting method include which of the following? Select all that
apply. - Answers -Low cost
Allow downloading of bills from banks and credit card companies
Minimize the time spent on finances
Relatively easy to use
Which principle can help with us not buying things we don't need or haven't budgeted
for? - Answers -HALT
When discussing tips for frugal living, the author suggests decreasing one's living
expenses because it's easier to control the spending side than it is the income side of
the budget equation. - Answers -True
Which of the following is not identified as a purpose of the book? - Answers -Teach you
to accumulate wealth.
The authors suggested four answers to the question, "Why should I learn about family
finance?" Which is not one of the four reasons? - Answers -Community: Becoming a
stronger citizen and member of your community.
The second important question the authors suggested you ponder: "What are the
profound principles upon which the stewardship perspective is based?" Which is not
one of the four stewardship principles? - Answers -Discipleship
Of the four stewardship principles, if followed wisely, which is our gift back to God? -
Answers -Accountability
The text suggests creating a budget that includes at least a percent allocation to long-
term savings. - Answers -10
What does the author believe is the biggest financial mistake made by recent
graduates? - Answers -Buying a house beyond their means.
Most financial planners recommend worth of living expenses set aside in a savings or
checking account as an emergency fund. - Answers -three to six months
In the reading, the story of Elder Robert D. Hales and his new bride was shared. He
was in the air force and they'd missed Christmas together. What did he want to buy his
wife? - Answers -A dress
What budget category do the authors suggest commonly gets overlooked? - Answers -
Miscellaneous
The authors recommend the investing mantra "get rich slowly." They recommend
avoiding which of the following strategies? - Answers -Speculation
Which of the following statements about compound interest were made in the reading?
Select all that apply. - Answers -A marvelous work and a wonder
Eighth wonder of the world
Interest earning interest
What should setting goals involve? - Answers -Process of understanding yourself and
your family.
Trying to understand what God wants you to accomplish.
What does the "S" in SMART goals refer to? - Answers -Specific
, Which of the following financial elements are part of developing a plan of action? Select
all that apply. - Answers -Budget
Planning for big-ticket purchases
Plan for managing debt
Plan for insurance
Investment plan
Plan for retirement
Which of the following are Principles of Provident Living? Select all that apply. -
Answers -Being content with what you have
Avoiding excessive debt
Preparing for rainy-day emergencies
All family financial records should be kept forever. - Answers -False
What is not an example of a fixed expense? - Answers -Food
What would not be categorized as a variable expense? - Answers -Insurance payment
One of the most often neglected budget categories is miscellaneous (the category for
unexpected expenses). - Answers -True
Which of the following principles should guide effective family budgets? Select all that
apply. - Answers -Spend less than you earn.
Keep good records.
Use a budgeting method that meets individual and family needs.
"Mad money" should be a budget category even though you aren't responsible for how it
is spent. - Answers -True
For those who find living within a budget difficult, which of the following is the most
straightforward method? - Answers -Envelope method
Attributes of the best budgeting method include which of the following? Select all that
apply. - Answers -Low cost
Allow downloading of bills from banks and credit card companies
Minimize the time spent on finances
Relatively easy to use
Which principle can help with us not buying things we don't need or haven't budgeted
for? - Answers -HALT
When discussing tips for frugal living, the author suggests decreasing one's living
expenses because it's easier to control the spending side than it is the income side of
the budget equation. - Answers -True
