Final Exam

Your goals and priorities are reflected in your checkbook.

True

False

_______________ is the use of God-given resources for the accomplishment of God- given goals.

Investing

Stewardship

Every spending decision is a spiritual one.

True

False

A person who declares bankruptcy probably has a propensity to ___________.

Borrow

Save

______________ assets can be converted to cash immediately.

Liquid

Nonliquid

Every goal must be measurable by __________ and quantity.

Finances

Time

Denying God an opportunity to act on your behalf is a ________________ result of borrowing.

spiritual

financial

The longer a car is driven, the more expensive it is to operate.

True

False

One danger of debt is that compounding works ____________ you.

For

Against

A prerequisite of borrowing should be a guaranteed way to repay.

True

False

In debt repayment, concentrate on repaying the _______________ debt first.

Smallest

Largest

Cheerfulness and grace should be your attitude in _____________.

Borrowing

Giving

Tax _______________ is illegal.

avoidance

evasion

Helping the needy should be a purpose for giving.

True

False

The outstanding attribute of a manager should be __________________.

faithfulness

shrewdness

When in financial trouble, only give if you have money left over.

True

False

“Do to others as you would have them do to you” is the Law of ______________ in action.

Reciprocity

Responsibility

______________ interest operates according to the Law of Use.

Simple

Compounding

The Law of ________ states that you must be in harmony with your spouse.

Unity

Marriage

Two basic types of investments are debt ______________.

credit

equity

Your emergency fund should include six months’ worth of living expenses.

True

False

A good investment strategy minimizes _____________________.

risk

liquidity

It is not important where you enter the economic cycle.

True

False

A tax refund check is a sign of ___________ planning.

good

poor

___________________ have total liquidity and low risk.

Growth mutual funds

Money market instruments

One way to reduce your taxes is to give a portion of your income to a family member in a lower tax bracket.

True

False

You ___________ deduct contributions of your time.

can

cannot

During times of _____________ money market funds and savings accounts lose purchasing power.

inflation

recession

Maintaining a ______________ perspective is the first general rule in investments.

short-term

long-term

Income = Principal x ____________ x Time.

Interest

Investment

You should use your retirement fund when financial emergencies arise.

True

False

Your purchase of insurance should be based on ___________.

facts

emotions

Tax-exempt Series EE _____________ are a good investment for your child’s college education.

Stocks

Bonds

It is not possible to designate in your will charitable gifts to be given.

True

False

Your ______ includes the value of your home, insurance policies, and all other assets.

estate

property

A will is a good way to publicly record your Christian testimony.

True

False

Based on the text, carefully consider the spiritual maturity of the person you choose as ________________ for your children

guardian

executor

An estate without enough ____________ cannot meet its final expenses.

liquidity

exemptions

The capital gains ___________ is charged on appreciated property.

tax

finance charge

The marital gift _____________ allows the protection of assets from a lawsuit by transferring them to a spouse.

exclusion

provision

When a person dies ___________, the state is then given the right to determine control of the estate.

interstate

intrastate

The _________ is the foundational cornerstone of an estate plan.

trust

will

Teen influence on family spending is more important than what they actually spend.

True

False

The most important principle in money management is: “___________________.”

God owns it all

Planning is critical

A _____________ always comes with repeated practice.

principle

skill

The most difficult principle to teach or use is delayed _______________.

purchasing

gratification

Withholding the payment of an allowance is an excellent disciplinary tool.

True

False

___________ are specific steps by which you accomplish the purposes of life.

Goals

Procedures

The fear of the loss of a reward is a great motivator.

True

False