BUSINESS MATH TEST GUIDE
QUESTIONS AND ANSWERS
Using the sinking fund approach, how much do you have to save each month to buy a
$4,800 car one year from now? - ANSWER-$400
What is not one of the three basic reasons for saving money? - ANSWER-Have money
available to lend to friends.
Why is having a fully funded emergency fund so important when it comes to your
financial well-being? - ANSWER-The purpose of an emergency fund is to set money
aside for unexpected emergencies
Saving is about : - ANSWER-contentment and emotion
Your _ _ _ _ _ _ _ _ _ _ level greatly affects your saving habits - ANSWER-discipline
A plan starts with a: - ANSWER-budget
When it comes to saving money, the amount you save is determined by how much you
have left at the end of the month once all of your spending is done. - ANSWER-False
An emergency fund is an: - ANSWER-insurance
When you're in high school, you won't have the same emergency expenses as your
parents. - ANSWER-True
Five Foundations - ANSWER--$500 emergency fund
-get out of debt
-pay cash for car
-pay cash for college
-build wealth and give
What are the "three secrets of saving?" - ANSWER-- Focus
- Discipline
- Practice
1st generation rich - ANSWER-About 80% of millionaires had to earn their money, they
didn't inherit it.
The most powerful wealth building opportunity is: - ANSWER-Compound Interest
Dealing with interest Bearing accounts, semi-annual accounts calculate every: -
ANSWER-6 months
, Money set aside and left alone for a "rainy day". - ANSWER-emergency fund
Saving money over time for a large purchase - ANSWER-sinking fund
Percentage paid to a lender for the use of borrowed money, or the percentage earned
on invested principal - ANSWER-Interest rate
Interest paid on interest previously earned - ANSWER-compound interest
The percentage amount one will make off their investment - ANSWER-rate of return
Save a $500 emergency fund - ANSWER-the First Foundation
When a person intentionally invests money in a place where it can earn more money -
ANSWER-Wealth building
Which of the following is a consequence of overdrawing your checking account -
ANSWER-- Bounced check fee from the store
- Overdraft fee from your bank
- Stress from money mismanagement
Doing a budget does not: - ANSWER-make overspending more likely
Rent is a: - ANSWER-fixed expense
The zero-based budget is the best method of budgeting because - ANSWER-The zero
based budget ensures that every dollar you make is assigned a specific purpose
What is not a record keeping feature you could expect from your bank - ANSWER-
Customer service reconciles your account for you
Budgeting is crucial to your financial success. - ANSWER-true
Writing and following a zero-based budget will help you avoid overspending and
impulse purchases. - ANSWER-True
A debit card cannot be used for online purchases - ANSWER-false
Setting up automatic account transfers is the easiest way to build your savings for your
emergency fund or large purchases. - ANSWER-True
Occurs when money is withdrawn from a bank account and the available balance goes
below zero - ANSWER-overdraft
QUESTIONS AND ANSWERS
Using the sinking fund approach, how much do you have to save each month to buy a
$4,800 car one year from now? - ANSWER-$400
What is not one of the three basic reasons for saving money? - ANSWER-Have money
available to lend to friends.
Why is having a fully funded emergency fund so important when it comes to your
financial well-being? - ANSWER-The purpose of an emergency fund is to set money
aside for unexpected emergencies
Saving is about : - ANSWER-contentment and emotion
Your _ _ _ _ _ _ _ _ _ _ level greatly affects your saving habits - ANSWER-discipline
A plan starts with a: - ANSWER-budget
When it comes to saving money, the amount you save is determined by how much you
have left at the end of the month once all of your spending is done. - ANSWER-False
An emergency fund is an: - ANSWER-insurance
When you're in high school, you won't have the same emergency expenses as your
parents. - ANSWER-True
Five Foundations - ANSWER--$500 emergency fund
-get out of debt
-pay cash for car
-pay cash for college
-build wealth and give
What are the "three secrets of saving?" - ANSWER-- Focus
- Discipline
- Practice
1st generation rich - ANSWER-About 80% of millionaires had to earn their money, they
didn't inherit it.
The most powerful wealth building opportunity is: - ANSWER-Compound Interest
Dealing with interest Bearing accounts, semi-annual accounts calculate every: -
ANSWER-6 months
, Money set aside and left alone for a "rainy day". - ANSWER-emergency fund
Saving money over time for a large purchase - ANSWER-sinking fund
Percentage paid to a lender for the use of borrowed money, or the percentage earned
on invested principal - ANSWER-Interest rate
Interest paid on interest previously earned - ANSWER-compound interest
The percentage amount one will make off their investment - ANSWER-rate of return
Save a $500 emergency fund - ANSWER-the First Foundation
When a person intentionally invests money in a place where it can earn more money -
ANSWER-Wealth building
Which of the following is a consequence of overdrawing your checking account -
ANSWER-- Bounced check fee from the store
- Overdraft fee from your bank
- Stress from money mismanagement
Doing a budget does not: - ANSWER-make overspending more likely
Rent is a: - ANSWER-fixed expense
The zero-based budget is the best method of budgeting because - ANSWER-The zero
based budget ensures that every dollar you make is assigned a specific purpose
What is not a record keeping feature you could expect from your bank - ANSWER-
Customer service reconciles your account for you
Budgeting is crucial to your financial success. - ANSWER-true
Writing and following a zero-based budget will help you avoid overspending and
impulse purchases. - ANSWER-True
A debit card cannot be used for online purchases - ANSWER-false
Setting up automatic account transfers is the easiest way to build your savings for your
emergency fund or large purchases. - ANSWER-True
Occurs when money is withdrawn from a bank account and the available balance goes
below zero - ANSWER-overdraft
