Chapter 1-4 Test

Created by CoachThornton#1

You must establish credit in order to buy a house
A. True B. False
Personal finance is about _______% behavior and _______% head knowledge.
A. 80, 20 B. 30, 70 C. 70,20 D. 50,20
The condition of having unlimited wants but limited resources is known as:
A. Scarcity B. Earnings C. Budgeting D. Global demand
Your income level greatly affects your saving habits
A. False B. True
A plan for spending is called a(n):
A. Economy B. Budget C. Scarcity D. Checking account
Describe some of the mistake Americans often make when it comes to money.
What is the First Foundation? Explain how and why the dollar amount will change as you get older.
A your age, a fully funded emergency fund should be:
A. $500 B. $1,000 C. $100 D. $5,000
Explain why financing a car is a bad idea.
Which of the following is NOT a good idea for getting out of debt?
A. Quit borrowing money B. Get a part time job C. Sell something D. Borrow money from your parents to pay off the debt
Calculate the compound interest for the problem below: $1,500 at 6% for three years.
Calculate the compound interest for the problem below: $3,450 at 19% for two years.

Answer Key
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Chapter 1-4 Test (Answer Key)

Created by CoachThornton#1

You must establish credit in order to buy a house
A. True B. False
Personal finance is about _______% behavior and _______% head knowledge.
A. 80, 20 B. 30, 70 C. 70,20 D. 50,20
The condition of having unlimited wants but limited resources is known as:
A. Scarcity B. Earnings C. Budgeting D. Global demand
Your income level greatly affects your saving habits
A. False B. True
A plan for spending is called a(n):
A. Economy B. Budget C. Scarcity D. Checking account
Describe some of the mistake Americans often make when it comes to money.
Set goals, write a plan, execute a plan, know your personality, replace money myths with money truths.
What is the First Foundation? Explain how and why the dollar amount will change as you get older.
Set aside $500 in an Emergency Fund. You can continue place money in the fund and have a great amount at a younger age.
A your age, a fully funded emergency fund should be:
A. $500 B. $1,000 C. $100 D. $5,000
Explain why financing a car is a bad idea.
Monthly payments might get expensive.
Which of the following is NOT a good idea for getting out of debt?
A. Quit borrowing money B. Get a part time job C. Sell something D. Borrow money from your parents to pay off the debt
Calculate the compound interest for the problem below: $1,500 at 6% for three years.
Calculate the compound interest for the problem below: $3,450 at 19% for two years.

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