Econ Midterm

Question 1

only __% of Americans would be able to cover a $5000 emergency with cash with out going into debt for it

Answer 1

32

Question 2

__% of Americans have less then$25,000 in retirement savings. __% of those people are over 55! __% believe that they only need $250,000 or less in total retirement funds

Answer 2

53, 43, 30

Question 3

savings rate for 2006 was __%, the lowest since the great depression

Answer 3

-1

Question 4

baby step 1: $____ in the bank, if your income is under $20,000, make this $___

Answer 4

1,000; 500

Question 5

saving must become a _____

Answer 5

priority

Question 6

You must pay yourself ______

Answer 6

first

Question 7

give, save, then pay _____

Answer 7

bills

Question 8

saving money is about ______ and ____________

Answer 8

peace; contentment

Question 9

building wealth is not evil or wrong. money is _____

Answer 9

amoral

Question 10

Larry Burkett, a famous Christian author, said, “the only difference in saving and hoarding is _______”

Answer 10

attitude

Question 11

What are the 3 basic reasons for you to save?

Answer 11

emergency fund, purchases, & wealth building

Question 12

_________ events happen-expect them

Answer 12

unexpected

Question 13

baby step 3: _ to _ months of expenses in savings

Answer 13

3 to 6

Question 14

a great place to keep your emergency fund is in a _____ ______ account from a mutual fund company

Answer 14

money market

Question 15

a great place to keep your emergency fund is in a _____ ______ account from a mutual fund company

Answer 15

money market

Question 16

your emergency fund is not an ________ it is ________

Answer 16

investment; insurance

Question 17

do not _____ this fund for purchases

Answer 17

touch

Question 18

The emergency fund is your _____ savings priority. Do it quickly!

Answer 18

first

Question 19

instead of __________ to purchase, pay cash by using a _______ fund approach

Answer 19

borrowing; syncing

Question 20

a written plan removes the “management by ______” from their finances

Answer 20

crisis

Question 21

managed money goes _______

Answer 21

farther

Question 22

a written plan, if actually lived and agreed on, will remove much of the _____, _____, and ____ that may be a part of buying necessities such as food and clothing.

Answer 22

guilt, shame, & fear

Question 23

a written plan, if actually lived and agreed on, will remove many of the _____ ______ from your marriage.

Answer 23

money fights

Question 24

a written plan, if actually lived and agreed upon, will remove many of the __________ from your life, consequently removing a lot of ______.

Answer 24

overdrafts; stress

Question 25

a written plan, if actually lived and agreed upon, will show if you are ___________ in a certain area

Answer 25

overspending

Question 26

the easiest and most powerful method is a ____-based plan using the ________ system

Answer 26

zero; envelope

Question 27

money is _____

Answer 27

active

Question 28

You must do a written _____ _____ plan every month

Answer 28

cash flow

Question 29

You must keep your checking account _______

Answer 29

balanced

Question 30

overdrafts are a sign of _____ ______ and sloppy, lazy money habits

Answer 30

crisis living

Question 31

use _________ checks if necessary

Answer 31

duplicate

Question 32

If not managed and made to behave, the ___ card and the _____ card are certain to become budget busters

Answer 32

atm; debit

Question 33

If you tell a lie or spread a ____ often enough, loud enough, and long enough, the myth becomes accepted as _____

Answer 33

myth; truth

Question 34

debt has been _________ to us in so many forms and so aggresivly since the 1960s that to even imagine living without it requires a complete _________ ______

Answer 34

marketed; paradigm shift

Question 35

If I loan money to a friend or relative, I will be _______ them

Answer 35

helping

Question 36

the relationship will be strained or ________

Answer 36

destroyed

Question 37

by __-_______ a loan, I am helping out a friend or relative

Answer 37

co-signing

Question 38

the bank requires a cosigner because the person isn't likely to _____. so be ready to pay the loan and have your credit damaged because you are on the loan.

Answer 38

repay

Question 39

cash advance, rent-to-own, title pawning, and tote-the-note car lots are needed _______ for lower income people to get ahead.

Answer 39

services

Question 40

these are horrible, _______ rip-offs that aren't needed and benefit no one but the owners of these companies

Answer 40

greedy

Question 41

playing the lottery and other forms of gambling will make me ____

Answer 41

rich

Question 42

the lottery is a tax on the poor and on people who can't do ____

Answer 42

math

Question 43

car __________ are a way of life, and you'll always have one

Answer 43

payments

Question 44

staying away from car payments by driving reliable used cars is what the typical millionaire does. that is ___ they become millionaires

Answer 44

how

Question 45

______ your cart is what sophisticated financial people do. You should always please things that go down in value. there are tax advantages

Answer 45

leasing

Question 46

consumer reports, smart money magizine, and a good calculator will tell you that the car lease is the most ________ way to finance and operate a vehicle

Answer 46

expensive

Question 47

If you own a business, you can write off your ____-___ car on taxes without paying payments for the privilege

Answer 47

paid-off

Question 48

the way to minimize the money lost on things that go down in value is to buy slightly ____

Answer 48

used

Question 49

You can get a good deal on a ___ car

Answer 49

New

Question 50

a new car loses __% of it's value in the first four years.

Answer 50

70

Question 51

You need a credit card to ____ a car or to make _________ online or by phone

Answer 51

rent; purchases

Question 52

a _____ card will do all of that, except a few major rental companies. check in advance

Answer 52

debit

Question 53

"I pay mine off every _____ with no annual fee. I get brownie points, air miles, and a free hat."

Answer 53

month

Question 54

a recent fun and bradstreet study found that when you use plastic instead of cash you spend __ to __% more because spending cash hurts.

Answer 54

12 to 18

Question 55

I'll make sure my _________ gets a credit card so he can learn to be responsible with money.

Answer 55

teenager

Question 56

teens are a huge ______ of credit card companies today

Answer 56

target

Question 57

the home equity loan is good for ____________ and is a substitute for an emergency fund

Answer 57

consolidation

Question 58

You don't go into ___ for emergencies

Answer 58

debt

Question 59

debt consolidation _____ interest, you get just one smaller payment

Answer 59

saves

Question 60

debt consolidation is a ___

Answer 60

con

Question 61

debt consolidation typically saves _____ or ___ interest because you will throw your low interest loans into the deal

Answer 61

little or no

Question 62

You can't _______ your way out of debt

Answer 62

borrow

Question 63

smaller payments equal more ____ in debt

Answer 63

time

Question 64

debt is a ____ and should be used to create prosperity

Answer 64

tool

Question 65

the borrower is ______ to the lender

Answer 65

slave

Question 66

"what is the most important key to building wealth?" __% replied that becoming debt free was the number one key to wealth building

Answer 66

75

Question 67

how much could you ____, invest, blow, and ____ if you had no payments?

Answer 67

save; give

Question 68

quit ________ more _____!

Answer 68

borrowing; money

Question 69

You must ____ money

Answer 69

save

Question 70

_______ really works

Answer 70

prayer

Question 71

____ something

Answer 71

sell

Question 72

take a part-time ___ or ________ (temporarily)

Answer 72

job; overtime

Question 73

baby step 2: pay off all debt using the ____ ________

Answer 73

debt snowball