Personal Finance Chap 4

Question 1

According to the Wall Street journal _______% of Americans are living paycheck to paycheck

Answer 1

70

Question 2

When it comes to debt, if you tell a lie or spread a ______ long enough, eventually it becomes accepted as _____

Answer 2

Myth

Truth

Question 3

Debt has been _________ to us with such intensity for so long that to imagine living without it requires a complete ________ shift, a completely new way of looking at things

Answer 3

Marketed

Paradigm

Question 4

Myth 1

Myth; If I _____ money to a friend, to relative I will be helping them
Truth: the relationship will be strained or _________

Answer 4

Loan

Destroyed

Question 5

Myth 2

Myth: by ________ a loan, I am helping out a friend or relative
Truth: the bank requires a co-signer because the person isn’t likely to _____

Answer 5

Co-signing

Pay

Question 6

Myth 3

Myth: _____ __________, rent to own, title pawning, are needed _______ for lower income people to help them get ahead

Answer 6

Cash advance

Services

Question 7

____% of ___________ in America are first generation rich

Answer 7

80%

millionaires

Question 8

Myth 4

Myth: the _______ and other forms of gambling will make me ______
Truth: the lottery is a ____ on the poor and on people who can’t do math

Answer 8

Lottery, rich

Tax

Question 9

People without a high school diploma spent an average of ____ a month playing the lottery, college graduates spent ____ a month on average

Answer 9

173

49

Question 10

Myth 5

Myth: _____ Payments are a way of life and you’ll always have one
Truth: staying away from car payments by driving reliable used cars is what the typical ___________ does

Answer 10

Car

Millionaire

Question 11

Myth 6

Myth: ________ your car is what sophisticated financial people do
Truth: ______ is the most _____ way to finance and operate a vehicle

Answer 11

Leasing
Expensive
Expensive

Question 12

If you own a business, you can ______ ____ your paid for car on taxes without paying payments for the privilege

Answer 12

Write off

Question 13

The way to _____ the money lost on things that go down in value is to buy slightly ______

Answer 13

Minimize

Used

Question 14

Myth 7

Myth: you can get a good deal on a _____ car
Truth: a new car loses ____% of its value in the first _____ years

Answer 14

Deal
70%
Four

Question 15

Myth 8

Myth: I’ll take out a 30-year mortgage and pay _____
Truth: life happens and something else will always seem more important, never take out more than a ____ year fixed rate mortgage

Answer 15

Extra

15

Question 16

Myth 9

Myth: it’s wise to take out an ______ or a ______ mortgage if “I know I’ll be moving”
Truth: you will be moving when they ________

Answer 16

Adjustable, balloon

Foreclose

Question 17

The adjustable rate mortgage is here to keep the ______ from losing money. It transfers the _____ of higher interest rates to you

Answer 17

Bank

Risk

Question 18

Myth 10

Myth: you need a _______ ____ to rent a car or make _______ online or by phone
Truth: a _____ card does all of that

Answer 18

Credit card, purchases

Debit

Question 19

Myth 11

Myth: I pay my ______ ____ off every month with no annual payment or fee
Truth: when you use cash instead of plastic, you spend ________ less because cash hurts

Answer 19

Credit card

12-18%

Question 20

Myth 12

Myth: I’ll make sure my _______ gets a credit card so he can learn to be responsible with money
Truth: teens are a huge ______ of credit card companies today

Answer 20

Teenager

Target

Question 21

New car dealers make the following profit:

1. $___ for the cash sale of a new car
2. $____ for financing a new car
3. $______ for leasing a new car

Answer 21

$82
$775
$1300

Question 22

Before McDonald’s chose to accept credit cards the average ticket price was 4.75, when they accepted them the price went up to 7.00, that’s a ____% increase

Answer 22

47