Exam 13: Managing Money

What is the first step in budgeting?

It is a good idea to set aside two to six months' income in a(n) ____________________ fund to help cover unplanned expenses and unexpected loss of income.

Wealth is a solid foundation for positive self-belief.

The financial pyramid model is equally applicable to everyone.

Bonds:

The interest rate charged on credit is:

The cost of credit varies widely, depending on the source.

The amount of money a policyholder must pay before an insurance company begins paying on a claim is:

Once you have drafted a monthly budget, you should avoid changing it.

When you use a(n) ____________________ card, the money is automatically subtracted from your checking or savings account.

What do most people use to pay routine bills?

The amount of your paycheck after deductions for taxes, insurance, and retirement contributions is your:

Certificates of deposit:

Credit ____________________ maintain records of consumers' use of credit.

To begin budgeting, you should track your income and expenses for a couple of months.

Rent, mortgage payments, car payments, and insurance payments are examples of ____________________ expenses.

A(n) ____________________ is a plan based on your short-, intermediate-, and long-term financial goals.

Which of the following is not one of the four A's of budgeting?

What forms the base of the financial pyramid?

To avoid identity theft, you should: