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FCS 340 Money Management > Exam 1 (weeks 1-3) > Flashcards

Exam 1 (weeks 1-3) Flashcards

1
Q

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

A

Discipleship

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2
Q

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

A

Teach you to accumulate wealth

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3
Q

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

A

Community: becoming a stronger citizen and member of your family

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4
Q

Of the four stewardship principles followed wisely, which is a gift back to God?

Discipleship
Stewardship
Agency
Accountability

A

Accountability

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5
Q

The text suggests creating a budget that includes at least________ percent allocation to long-term savings

5
10
15
20

A

10

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6
Q

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)

A

Buying a house beyond their means

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7
Q

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

A

3 to 6 months

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8
Q

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

A dress

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9
Q

What budget category do the author suggest commonly gets overlooked?

Debt payments
Clothing
Food
Miscellaneous

A

Miscellaneous

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10
Q

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

A

Speculation

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11
Q

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

A

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

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12
Q

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

A

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

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13
Q

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

A marvelous work, and a wonder
Eighth wonder of the world
Interest earning interest

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14
Q

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

A

Process of understanding yourself and your family
Trying to understand what God wants you to accomplish

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15
Q

Which of the following are steps in creating a family financial plan?
D
E
D
D
I
R

A

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

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16
Q

What does the S in smart goals refer to?

Strategic
Simple
Spiritual
Specific

A

Specific

17
Q

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

A

All of the above

18
Q

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

A

Income and expense = a record of the past
Net worth = a snapshot of the present
Budget = a plan for the future

19
Q

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

A

Being content with what we have
Avoiding excessive debt
Preparing for a rainy day emergencies

20
Q

All family, financial records should be kept forever. True or false

A

False

21
Q

Which of the following is NOT an example of a fixed expense?

Tithing
Rent
Food
Car payment

A

Food

22
Q

Which of the following would NOT be categorized as a variable expense?

Insurance payments
Home maintenance
Clothing
Entertainment

A

Insurance payments

23
Q

One of the most often neglected budget categories is miscellaneous. True or false

A

True

24
Q

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

A

All of the above

25
Q

Mad Money should be a budget category even though you aren’t responsible for how it is spent. True or false.

A

True

26
Q

For those who find living within a budget difficult which of the following is the most straightforward method?

Online services
Spreadsheets
Software
Envelope method

A

Envelope method

27
Q

Attributes of the best budget and methods include which of the following? Select all that apply.

Low cost
Allow downloading of bills from banks and credit card companies
Minimize the time spent on finances
Request weekly attention
Relatively easy to use

A

Low cost
Allow downloading of bills from banks, credit card companies
Minimize the time spent on finances
Relatively easy to use

28
Q

Which principle can help with us not buying things we don’t need or have budgeted for?

DNAI-ial
It’s all in my head
HALT
SMART

A

HALT

29
Q

When discussing tips for frugal living, the author suggests decreasing one’s living expenses because it’s easier to control the spending side then it is the income side of the budget equation. True or false

A

True

30
Q

Which of the following strategies for outlined to lower food costs? Select all that apply.

HALT
Shop once every two weeks
Change your menu
Use a shopping list
Buy store brands
Pay cash
Buy in bulk
Take vantage of lost leaders

A

HALT
Use a shopping list
Buy store brands
Pay cash
Buy in bulk
Take advantage of loss leaders

31
Q

A study conducted by MIT revealed that shoppers using a credit card spend more than those using cash. How much more?

25%
50%
75%
100%

A

100%

32
Q

Eating out at restaurants is an American craze as a country we spend more money at restaurants than we do at grocery stores. True or false

A

True

33
Q

Well, the focus of this lesson is on tips for frugal, living. The author cautions us not to miss out on meaningful experiences due to unnecessary frugality. True or false

A

True

34
Q

Which of the following wasn’t identified as a method to save money on transportation cost?

Buying a used car instead of a new car
Walking and biking with possible
Shopping around for auto insurance
Shopping around for the lowest rate auto loan possible

A

Shopping around for the lowest rate auto loan possible

FCS 340 Money Management (2 decks)

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