Personal Finance 2023 Exam Review (Updated) 100% Correct

Personal Finance 2023 Exam Review (Updated) 100% Correct What is the first foundation? a.) pay cash for college b.) build wealth and give c.) save a $500 emergency fund d.) open a checking account c.) save a $500 emergency fund What is financial literacy? a.) The skills to read financial documents for personal finance classes, goals, and statements b.) The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively c.) The content provided in bank statements for consumers d.) The curriculum provided to college students about finances for their degrees b.) The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively True or False: Banks got into the credit business before 1920 because charging exceptionally highinterest rates was legal. true True or False: You are either only a natural saver or a natural spender. You cannot have a balance of both. False As a single adult, you should . . . a.) Never seek financial advice from others b.) Keep managing your money as a priority c.) Beware of planned and budgeted buying d.) Seek a financial counselor or advisor by age 25 b.) Keep managing your money as a priority True or False: Avoiding debt can lead to financial freedom and hope. True Using credit has not always been a socially accepted practice, but it has become . . . a.) Normal in American culture b.) A practice used by the wealthy c.) Less acceptable d.) Necessary for life in America d.) Necessary for life in America An important money principle to consider is that you should _____ and _____ your money. a.) Save; invest b.) Invest; lay out c.) Invest; endow d.) Spend; invest a.) Save; invest To gain an understanding of your personal finances, you should know . . . a.) Where you stand financially, how much income you have, what goals you want to set, and how you'll reach those goals b.) Your investment portfolio and your financial advisor's contact information c.) Your financial goals d.) How much income you have a.) Where you stand financially, how much income you have, what goals you want to set, and how you'll reach those goals