Financial Counseling Certification

Financial Counseling Certification what is the definition of debt? A. Debt is the amount you save B.Debt is the amount you owe C.Debt is the amount you can borrow D.Debt is the amount you spend1 - B What are the housing market conditions that indicate a real estate "bubble"? A. Housing Values stagnate as consumer income rises. B.Consumer income rises faster than housing values. C.Both housing Values and consumer income are stagnant. D.Housing values rise faster than consumer income. - D How do rising interest rates impact household budgets? A. They have no impact on household budgets. B. They increase costs for loans and mortgages. C. Costs are unchanged for loans and mortgages. D. They decrease costs for loans and mortgages. - B Select the best description of members who fall into the category of "spending too much." A. They prefer to hire others to perform unpleasant tasks. B. They fail to track spending and don't separate wants from needs. C. They often order from catalogs. D. They often use cash to pay for purchases. - B. They fail to track spending and don't separate wants from needs. Identify a common statement made by members who fall into the "saving too little" category. A. " I don't need a savings account because I make monthly deposits to my 401(k)" B. I save part of every paycheck. C. Id rather save until I have the money to buy the things I want than pay interest on loans. D. Waiting until I have the money to buy something I really want makes it feel special. - A. " I don't need a savings account because I make monthly deposits to my 401(k)" What is the "drug of choice" for consumers who regularly buy items they don't need? A.Food B.Sleep C.Consumption D.Television - C.Consumption Select a problem often exhibited by consumers who can be characterized as "spending too much." A. They save until they can afford to buy what they need. B. They buy items they want on credit, instead of waiting until they have saved the money they need. C. They can always tell the difference between wants and needs. - B. They buy items they want on credit, instead of waiting until they have saved the money they need. Which practice marks members who tend to carry too much debt? A. They see each new debt in terms of the minimum payment: its only $75 a week. B. They are willing to make sacrifices to become debt-free. C. They focus on the total debt owed. D. They always read the fine print on loans and CC offers. - A. They see each new debt in terms of the minimum payment: its only $75 a week. What qualities are displayed by members who are trapped in the mom and dad syndrome? A. They pass along their parents' financial lesson to their own children. B. They continually rescue their parents from financial mistakes. C. They rely on their parents for money long after they reach adulthood. D. They refuse to accept help or advice from their parents or anyone else. - C. They rely on their parents for money long after they reach adulthood. Chapter 2