FALL SEMESTER EXAM STUDY GUIDE QUESTIONS AND
ANSWERS
Making the right choices with your money—managing your money—involves knowing how . . . -
CORRECT ANSWER✅✅✅Earning, budgeting, saving, spending, and giving affect your money
Banks got into the credit business before 1920 because charging exceptionally high interest rates was
legal. - CORRECT ANSWER✅✅✅False
You should always make sure you have a... - CORRECT ANSWER✅✅✅Budget
To gain an understanding of your personal finances, you should know . . . - CORRECT
ANSWER✅✅✅Where you stand financially, how much income you have, what goals you want to
set, and how you'll reach those goals
What is The First Foundation? - CORRECT ANSWER✅✅✅Save a $500 emergency fund.
Being a spender has many more positives than being a saver. - CORRECT ANSWER✅✅✅False
Personal finance is all the financial decisions a(n) ________ must make in order to earn, budget, save,
spend, and give money over time. - CORRECT ANSWER✅✅✅Individual or family
Avoiding debt can lead to financial freedom and hope. - CORRECT ANSWER✅✅✅True
After World War I, the demand for products increased, and people began getting credit without loan
sharks. Because of this, credit... - CORRECT ANSWER✅✅✅Started to become more socially
acceptable
A money principle to keep in mind is to live on ______ you make. - CORRECT ANSWER✅✅✅Less
than
, To know your net worth, subtract your liabilities from your . - CORRECT ANSWER✅✅✅Assets
What is financial literacy? - CORRECT ANSWER✅✅✅The knowledge and skill base necessary for
people to be informed consumers and manage their finances effectively
Savers have a tendency to be . . . - CORRECT ANSWER✅✅✅Strict with their money and not spend
any of it.
What is the best way to avoid running out of money too quickly? - CORRECT ANSWER✅✅✅You can
make it a habit to plan and set goals for your money.
It is possible to pay for college with cash. - CORRECT ANSWER✅✅✅True
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the
purpose of this program? - CORRECT ANSWER✅✅✅To promote economic recovery and social
reform
An important money principle to consider is that you should and your money. - CORRECT
ANSWER✅✅✅Save; invest
If your assets total more than your liabilities, you will have a(n)
net worth. - CORRECT ANSWER✅✅✅Positive
What are The Five Foundations? - CORRECT ANSWER✅✅✅A personal financial action plan
Your money personality impacts . . . - CORRECT ANSWER✅✅✅How you handle money
What does living paycheck to paycheck mean? - CORRECT ANSWER✅✅✅Living paycheck to
paycheck occurs whena person's income is devoted to expenses which, in turn, means that little to no
money is put in savings.
ANSWERS
Making the right choices with your money—managing your money—involves knowing how . . . -
CORRECT ANSWER✅✅✅Earning, budgeting, saving, spending, and giving affect your money
Banks got into the credit business before 1920 because charging exceptionally high interest rates was
legal. - CORRECT ANSWER✅✅✅False
You should always make sure you have a... - CORRECT ANSWER✅✅✅Budget
To gain an understanding of your personal finances, you should know . . . - CORRECT
ANSWER✅✅✅Where you stand financially, how much income you have, what goals you want to
set, and how you'll reach those goals
What is The First Foundation? - CORRECT ANSWER✅✅✅Save a $500 emergency fund.
Being a spender has many more positives than being a saver. - CORRECT ANSWER✅✅✅False
Personal finance is all the financial decisions a(n) ________ must make in order to earn, budget, save,
spend, and give money over time. - CORRECT ANSWER✅✅✅Individual or family
Avoiding debt can lead to financial freedom and hope. - CORRECT ANSWER✅✅✅True
After World War I, the demand for products increased, and people began getting credit without loan
sharks. Because of this, credit... - CORRECT ANSWER✅✅✅Started to become more socially
acceptable
A money principle to keep in mind is to live on ______ you make. - CORRECT ANSWER✅✅✅Less
than
, To know your net worth, subtract your liabilities from your . - CORRECT ANSWER✅✅✅Assets
What is financial literacy? - CORRECT ANSWER✅✅✅The knowledge and skill base necessary for
people to be informed consumers and manage their finances effectively
Savers have a tendency to be . . . - CORRECT ANSWER✅✅✅Strict with their money and not spend
any of it.
What is the best way to avoid running out of money too quickly? - CORRECT ANSWER✅✅✅You can
make it a habit to plan and set goals for your money.
It is possible to pay for college with cash. - CORRECT ANSWER✅✅✅True
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the
purpose of this program? - CORRECT ANSWER✅✅✅To promote economic recovery and social
reform
An important money principle to consider is that you should and your money. - CORRECT
ANSWER✅✅✅Save; invest
If your assets total more than your liabilities, you will have a(n)
net worth. - CORRECT ANSWER✅✅✅Positive
What are The Five Foundations? - CORRECT ANSWER✅✅✅A personal financial action plan
Your money personality impacts . . . - CORRECT ANSWER✅✅✅How you handle money
What does living paycheck to paycheck mean? - CORRECT ANSWER✅✅✅Living paycheck to
paycheck occurs whena person's income is devoted to expenses which, in turn, means that little to no
money is put in savings.
