Chapter 01: Understand Personal Finance
Page 1
True / False
1. Financial literacy is knowledge of facts, concepts, principles, and technological tools that are fundamental to being
smart about money.
a. True
b. False
ANSWER: True
2. Being financially res...
1. Financial literacy is knowledge of facts, concepts, principles, and technological tools that
are fundamental to being
smart about money.
a. True
b. False
ANSWER: True
2. Being financially responsible is being knowledgeable about facts, concepts, principles,
and technological tools that are
fundamental to being smart about money.
a. True
b. False
ANSWER: False
3. Personal finance involves how people spend, save, protect, and invest their financial
resources.
a. True
b. False
ANSWER: True
,4. Financial success is defined as having high wealth.
a. True
b. False
ANSWER: False
5. Financial security is defined as having a high income.
a. True
b. False
ANSWER: False
6. People who save and invest are much more likely to have funds for future consumption.
a. True
b. False
ANSWER: True
7. Standard of living refers to an individual's level of spending and consumption.
a. True
b. False
ANSWER: False
8. Standard of living is what individuals or groups aspire to attain, and level of living is the
level of wealth, comfort,
materials goods, and necessities one is currently living with.
a. True
b. False
ANSWER: True
9. Financial security or wealth requires you to spend less than you earn.
, Name:
Class:
Date:
Chapter 01: Understand Personal Finance
a. True
b. False
ANSWER: True
10. A business cycle is a wavelike pattern of economic activity that includes an expansion,
peak, contraction, and trough.
a. True
b. False
ANSWER: True
11. The expansion phase is the preferred stage of the economic cycle.
a. True
b. False
ANSWER: True
12. Since it is impossible to make precise forecasts about economic trends, we can ignore
inflation and interest rates when
planning our finances.
a. True
b. False
ANSWER: False
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