Test 1

Question 1

All the financial decisions an individual or family must make in order to earn, budget, save, spend and give money over time

Answer 1

personal finance

Question 2

having the knowledge and skills you need as a consumer to be able to manage your money well

Answer 2

financial literacy

Question 3

a person or organization that uses a product or service

Answer 3

consumer

Question 4

money owed to another person or company

Answer 4

debt

Question 5

People are trapped by debt because they cannot control their________ to have things or because they want to keep up___________

Answer 5

desire, appearances

Question 6

What percentage of people say they are burdened by consumer debt?

Answer 6

72%

Question 7

About how much debt does the average borrower have, without mortgages?

Answer 7

$34,000

Question 8

Debt is many times the result of a failure of what?

Answer 8

contentment

Question 9

What is an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings?

Answer 9

paycheck to paycheck

Question 10

What percentage of Americans use all of the money they get from one paycheck just to make it to the next?

Answer 10

80%

Question 11

Knowledge is what percent of personal finance?

Answer 11

20%

Question 12

80% of personal finance is what?

Answer 12

behavior

Question 13

the granting of a loan and the creation of debt, any form of deferred payment

Answer 13

credit

Question 14

the percentage of principal charged by the lender for use of its money

Answer 14

interest rate

Question 15

a person that charges borrowers interest rates above the established legal rate

Answer 15

loan shark

Question 16

the additional cost a lender charges for borrowing money

Answer 16

interest

Question 17

The stock market crashing in the 1920’s caused what?

Answer 17

The great depression

Question 18

What did FDR create after the great depression, saying that it would promote economic recovery and and social reform that would allow working-class Americans to get back on their feet?

Answer 18

The new deal

Question 19

In 1950, the average debt per person was under_______ but now it is over_______

Answer 19

1,500 and 34,000

Question 20

the highest debt level is among 45-54 years old with the _______ age bracket coming in a close second

Answer 20

35-44

Question 21

plan of action that allows a person to meet not only their immediate needs, but also their long term goals

Answer 21

financial plan

Question 22

amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities

Answer 22

net worth

Question 23

anything that is owned by someone, including money in the bank or investments

Answer 23

assests

Question 24

financial debts or obligations

Answer 24

liability

Question 25

the dollar value of a person's assets is greater than the dollar value of their liabilities

Answer 25

positive net worth

Question 25

the dollar value of a person's liabilities is larger than the value of their assets

Answer 25

negative income

Question 26

what a person earns after payroll taxes and other deductions are taken out

Answer 26

net income

Question 26

the cost of goods and services

Answer 26

expense

Question 27

What are the 5 characteristics of good financial goals?

Answer 27

specific, measurable , time-sensitive, yours, written

Question 27

No one is born with financial knowledge everyone has to________ it

Answer 27

learn

Question 28

What are the two kinds of money personalities?

Answer 28

spenders and savers

Question 29

impulse buying usually occurs when you are____ or when the "I owe it to myself" syndrome kicks in

Answer 29

stressed

Question 29

what kind of buying should you be careful of?

Answer 29

impulse buying

Question 30

what percent of couples with great marriages discuss their money goals and dreams together?

Answer 30

94%

Question 31

what is the leading cause of divorce in America?

Answer 31

money fights