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Ramsey Classroom Ch. 3 Post Test Questions & Detailed Answers
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Ramsey Classroom Ch. 3 Post Test Questions & Detailed Answers
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Ramsey Classroom Ch. 3 Post Test Questions &Detailed Answers
False - ANS In order to outpace inflation when investing, your investments need to
have a lower rate of return than the rate of inflation.
Compound growth - ANS _______ is a millionaire's best friend.
A savings account or money market account - ANS The only place you should keep
your emergency fund money is...
Compound growth - ANS Compound interest is earned at a fixed rate, while
________ is an average based on an investment's past performance.
Consistently investing money and patience to give it time to grow - ANS Which two
habits are the most important for building wealth and becoming a millionaire?
To have cash on hand for unexpected events - ANS What is the goal of an
emergency fund?
False - ANS 90% of millionaires make over $100,000 a year.
Save it until you have an emergency - ANS Once you have a $500 emergency fund,
you should . . .
, By showing you only the monthly payment, they make the product seem
affordable. - ANS Why do stores rarely advertise the full price of big purchases like
smartphones?
True - ANS If people saved the equivalent of a car payment each month for a year
or two (instead of spending it on payments and interest), they could have enough
money to buy a car with cash for much cheaper!
3-6 months of living expenses - ANS Once you're out of school, have started your
career, and have zero debt, your emergency fund should have _________.
Emergencies, large purchases, and wealth building - ANS The main reasons for
saving your hard-earned money are...
Live on less than you make - ANS If you really want to save money, you've got
to . . .
The time value of money - ANS Which principle says that a certain amount of
money today is worth more than the same amount in the future?
True - ANS You should budget in this order: giving, savings, spending.
Accountants; engineers; teachers - ANS The top three careers reported among
millionaires were _____________, _____________, and ___________.
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