PERSONAL FINANCE FINAL – Flashcards

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a person or organization that buys/uses goods or services
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consumer
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the knowledge and skills necessary to be an informed consumer and manage finances effectively
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financial literacy
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the granting of a loan and the creation of a debt; any form of deffered payment
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credit
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a debt evidenced by a "note" which specifies the principal amount, interest rate and date of repayment (example: house mortgage)
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loan
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an obligation of repayment owned by one party (debor/borrower) to a second party (creditor/ lender)
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debt
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a fee paid by a borrower to the lender for the use of borrowed money
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interest
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a system by which goods and services are produced and distributed
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economy
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all of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.
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personal finance
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learning the language of money is not that important because you will be able to depend on financial planners to manage your money
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false
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Which of the following is Not a reason credit is marketed so heavily to consumers in the United States.
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the use of credit is not socially accepted in the United States
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During the Great Depression, New Deal policy makers came up with mortgage (home loans) and consumer lending policies that convinced commercial banks that
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consumer credit could be profitable
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When it comes to managing money, success is about _____% head knowledge and ______% behavior.
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20, 80
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Describe some of the mistakes Americans often make when it comes to money.
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spending more money then what they actually have
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Explain why understanding your money personality is important when it comes to developing a money plan that's right for you.
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we need to know how to manage money so we aren't in debt
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Does the History of Credit and Consumerism segment make you view the use of credit differently than you did before? Explain!
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yes, because I thought it was normal to be in debt
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Explain how marketing can affect your decisions when it comes to spending money.
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it affects it by, well it makes you want it cause of the advertisement.
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Does managing your money well mean that you cant have fun with your money? Explain!
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no, it means you need to manage money
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