Exam 1 (weeks 1-3) Flashcards
The second important question the author suggested to ponder is as follows:“ what are the profound principles upon which the stewardship perspective is based?” Which is not one of the four stewardship principles?
Discipleship
Stewardship
Agency
Accountability
Discipleship
Which of the following is not identified as a purpose of the book?
Magnify your financial stewardships
Bless yourself, your family and others
Learn to use financial resources to build up the kingdom of God on earth
Teach you to accumulate wealth
Teach you to accumulate wealth
Authors suggested four answers to the question “why should I learn about family finance?” Which is NOT one of the four reasons?
Spiritual bring you to Christ
Community: becoming a stronger citizen and member of your community
Individual: accomplish your divine mission
Family: to return with your family back to heavenly father’s presence
Community: becoming a stronger citizen and member of your family
Of the four stewardship principles followed wisely, which is a gift back to God?
Discipleship
Stewardship
Agency
Accountability
Accountability
The text suggests creating a budget that includes at least________ percent allocation to long-term savings
5
10
15
20
10
What does the author believe is the biggest financial mistake made by recent graduates?
Borrowing too much in student loans
Immediately buying a new car after graduating
Buying a house beyond their means
Failing to contribute to your work retirement plan, 401(k)
Buying a house beyond their means
Most financial planners recommend___________ worth of living expenses, set aside in a savings or checking account as an emergency fund
One month
1 to 3 months
3 to 6 months
6 to 12 months
3 to 6 months
In the reading, the story of elder Robert D. Hales and his new bride was shared. He was in the Air Force and they’d miss Christmas together. What did he want to buy his wife?
A purse
A dress
A necklace
Shoes
A dress
What budget category do the author suggest commonly gets overlooked?
Debt payments
Clothing
Food
Miscellaneous
Miscellaneous
The authors recommend invest in mantra “ get rich slowly.” They recommend avoiding which of the following strategies.
Investing an individual stocks
Speculation
International investing
Gambling
Speculation
Match the following words, with its correct definition from the reading
Time value of money
Inflation
Interest
Any use of your money the results in the return on investment
The value of the dollar is not stagnant
Represents an increase in the price your family will pay for goods and services overtime
Time value of money: the value of the dollar is not stagnant
Inflation: represents an increase in the price your family will pay for goods and services overtime
Interest: any use of your money that results in a return on investment
Match the following words, with its correct definition from the reading
Nominal return
After tax return
Real return
Return on investment before inflation and taxes are taken into account
Return on investments after the impact of federal state and local taxes
Return on investment after installation on taxes are taken into account
Nominal return: return on investment before inflation and taxes are taken into account
After tax return: return on investments after the impact of federal state and local taxes
Real return: return on investment after inflation in taxes are taken into account
Which of the following statements about compound interest were made in the reading?
Select all that apply
A marvelous work, and a wonder
Eighth wonder of the world
Interest earning interest
Compounded interest only occurs annually
A marvelous work, and a wonder
Eighth wonder of the world
Interest earning interest
What does should setting goals involve? Select all that apply.
Simply riding a list of things you would like to accomplish
Process of understanding yourself and your family
Trying to understand what God wants you to accomplish
Process of understanding yourself and your family
Trying to understand what God wants you to accomplish
Which of the following are steps in creating a family financial plan?
D
E
D
D
I
R
Decide what you are about = 1
Evaluate your financial health = 2
Define your family goals = 3
Develop a plan of action = 4
Implement your plan = 5
Revise your plan as necessary = 6
What does the S in smart goals refer to?
Strategic
Simple
Spiritual
Specific
Specific
Which of the following financial elements are part of developing a plan of action? Select all that apply.
Budget
Planning for a big ticket purchases
planned for managing debt
Plan for insurance
Investment plan
Plan for retirement
All of the above
Match the financial statement to its definition
Income and expense
Net worth
Budget
A record of the past
A plan for the future
A snapshot of the present
Income and expense = a record of the past
Net worth = a snapshot of the present
Budget = a plan for the future
Which of the following are principles of provident living? Select all that apply.
Investing wisely
Being content with what we have
Avoiding excessive debt
Keeping financial records
Preparing for a rainy Day emergencies
Being content with what we have
Avoiding excessive debt
Preparing for a rainy day emergencies
All family, financial records should be kept forever. True or false
False
Which of the following is NOT an example of a fixed expense?
Tithing
Rent
Food
Car payment
Food
Which of the following would NOT be categorized as a variable expense?
Insurance payments
Home maintenance
Clothing
Entertainment
Insurance payments
One of the most often neglected budget categories is miscellaneous. True or false
True
Which of the following principles should guide affective family budgets? select all that apply
Spend less than you earn
Keep good records
Use a budgeting method that meets individual and family needs
All of the above
