Personal Finance Certification
Exam Questions with Correct
Answers
D) All of the above. - Answer- Why was the use of credit uncommon prior to 1917?
A) Laws prevented lenders from charging high interest rates.
B) Borrowing money was generally not socially acceptable.
C) Lending money to others was not profitable.
D) All of the above.
C) Knowing your money personality allows you to excuse excessive spending because
it is simply part of your nature - Answer- Which of the following is not a benefit of
understanding your own money personality?
A) Recognizing who you are allows you the opportunity to grow and learn.
B) Once you know your money personality, you can develop a financial plan that works
for you.
C) Knowing your money personality allows you to excuse excessive spending because
it is simply part of your nature.
D) None of the above.
C) Consumer credit could be profitable - Answer- During the Great Depression, New
Deal policymakers came up with mortgage (home loans) and consumer lending policies
that convinced commercial banks that:
A) Consumers would not be willing to use credit, since borrowing money for large
purchases had not previously been an option for the middle class
B) They would not be able to compete with loan sharks in the industry of consumer
lending
C) Consumer credit could be profitable
D) Consumer credit was not a profitable industry
False - Answer- T or F
Everyone should have the same financial plan. A budget that works for one person
should be sufficient for everyone.
True - Answer- T or F
When developing a personal financial plan, one of the first things you should do is
assess your current financial situation. This includes your income, assets and liabilities.
True - Answer- T or F
The credit system today is structured to accommodate a state of uncertain employment
and income instability, utilizing high interest rates and fees to turn huge profits.
, False - Answer- T or F
Learning the language of money is not that important because you will be able to
depend on financial planners to manage your money.
Loan - Answer- A debt evidenced by a ʺnote,ʺ which specifies the principal amount,
interest rate and date of repayment.
a.) bank fee b.) loan
personal finance - Answer- All of the decisions and activities of an individual or family
regarding their money, including spending, saving, budgeting, etc.
a.) personal finance b.) currency)
loan shark - Answer- A person or business that offers loans at extremely high interest
rates
a.) loan shark b.) creditor
consumer - Answer- A person or organization that uses a product or service
a.) borrower
b.) consumer
debt - Answer- An obligation of repayment owed by one party to a second party.
a.) debt
b.) ownership
credit - Answer- The granting of a loan and the creation of debt; any form of deferred
payment.
a.) credit
b.) annual fee
True - Answer- T of F
True financial security is achieved when your money begins to generate an income -
your money starts working for you.
False - Answer- T or F
Most Americans today are wealthy and will have financial security when they retire.
False - Answer- T or F
Since you are a teenager, what you do now with money will have little effect on your
financial future.
False - Answer- T or F
Learning the language of money is not that important because you will be able to
depend on financial planners to manage your money.
Exam Questions with Correct
Answers
D) All of the above. - Answer- Why was the use of credit uncommon prior to 1917?
A) Laws prevented lenders from charging high interest rates.
B) Borrowing money was generally not socially acceptable.
C) Lending money to others was not profitable.
D) All of the above.
C) Knowing your money personality allows you to excuse excessive spending because
it is simply part of your nature - Answer- Which of the following is not a benefit of
understanding your own money personality?
A) Recognizing who you are allows you the opportunity to grow and learn.
B) Once you know your money personality, you can develop a financial plan that works
for you.
C) Knowing your money personality allows you to excuse excessive spending because
it is simply part of your nature.
D) None of the above.
C) Consumer credit could be profitable - Answer- During the Great Depression, New
Deal policymakers came up with mortgage (home loans) and consumer lending policies
that convinced commercial banks that:
A) Consumers would not be willing to use credit, since borrowing money for large
purchases had not previously been an option for the middle class
B) They would not be able to compete with loan sharks in the industry of consumer
lending
C) Consumer credit could be profitable
D) Consumer credit was not a profitable industry
False - Answer- T or F
Everyone should have the same financial plan. A budget that works for one person
should be sufficient for everyone.
True - Answer- T or F
When developing a personal financial plan, one of the first things you should do is
assess your current financial situation. This includes your income, assets and liabilities.
True - Answer- T or F
The credit system today is structured to accommodate a state of uncertain employment
and income instability, utilizing high interest rates and fees to turn huge profits.
, False - Answer- T or F
Learning the language of money is not that important because you will be able to
depend on financial planners to manage your money.
Loan - Answer- A debt evidenced by a ʺnote,ʺ which specifies the principal amount,
interest rate and date of repayment.
a.) bank fee b.) loan
personal finance - Answer- All of the decisions and activities of an individual or family
regarding their money, including spending, saving, budgeting, etc.
a.) personal finance b.) currency)
loan shark - Answer- A person or business that offers loans at extremely high interest
rates
a.) loan shark b.) creditor
consumer - Answer- A person or organization that uses a product or service
a.) borrower
b.) consumer
debt - Answer- An obligation of repayment owed by one party to a second party.
a.) debt
b.) ownership
credit - Answer- The granting of a loan and the creation of debt; any form of deferred
payment.
a.) credit
b.) annual fee
True - Answer- T of F
True financial security is achieved when your money begins to generate an income -
your money starts working for you.
False - Answer- T or F
Most Americans today are wealthy and will have financial security when they retire.
False - Answer- T or F
Since you are a teenager, what you do now with money will have little effect on your
financial future.
False - Answer- T or F
Learning the language of money is not that important because you will be able to
depend on financial planners to manage your money.
