Chapter 1 Test-Dave Ramsey Questions and Answers 100% Solved correctly

Making the right choices with your money—managing your money—involves knowing how . . . - AnswerEarning, budgeting, saving, spending and giving your money Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal. - Answer-False You should always make sure you have a... - Answer-Budget To gain an understanding of your personal finances, you should know . . . - Answer-Where you are financially, amount of income you have, goals you want to set What is The First Foundation? - Answer-Have a $500 emergency Fund Personal finance is the financial decisions a(n) _______ must make in order to earn, budget, save, spend, and give. - Answer-Individual or Family Being a spender has many more positives than being a saver. - Answer-False After WWI, the demand for products increased, and people began getting credit without loan sharks. due to this, credit... - Answer-Started to become more socially acceptable A money principle to keep in mind is to live on _______ you make. - Answer-Less than To know your net worth, subtract your liabilities from your _____. - Answer-Assets Savers have a tendency to be . . . - Answer-strict with their money and not spend any of it What is the best way to avoid running out of money too quickly? - Answer-You can make a habit to plan and set goals for your moneyFranklin D. Roosevelt passed the New Deal due to the Great Depression in the 30s. What was the purpose of this program? - Answer-To promote economic recovery and social reform If your assets total more than your liabilities, you will have a(n) _____ net worth. - Answer-Positive What are The Five Foundations? - Answer-A financial action plan Your money personality impacts . . . - Answer-How you handle money What does living paycheck to paycheck mean? - Answer-When a person's income is used for expenses and little is put in savings In 1972, what association made borrowing money to attend college much easier than it had been? - Answer-The Student Loan Marketing Association (SLMA) Without any debt, you can be outrageously _______. - Answer-Generous When you set financial goals, they should be . . . - Answer-Specific, measurable, time-sensitive,yours, and written As a single adult, you should . . .Never seek financial advice from others Keep managing your money as a priority - Answer-keep managing your money as a priority A _____ financial goal takes up to two years to reach. - Answer-Short-term You are either only a natural saver or a natural spender. You cannot have a balance of both. - AnswerFalse It is possible to pay for college with cash. - Answer-TrueHaving a(n) _____ means the amount of your liabilities is larger than the value of your assets. - AnswerNegative net worth ______ means having the knowledge and skills to manage your personal finances. - Answer-Financial literacy As a(n) ,_______ it's up to you to make choices about what you buy and use. - Answer-Consumer ______ is a fee charged for using borrowed money for a purchase. - Answer-Interest