FCS 340 Exam 1 Questions and Answers
(2026) | Full Test Bank with Verified
Solutions | Grade A+
• The authors suggested four answers to the question, "Why should I learn about family
finance?" Which is not one of the four reasons? -✓✓Community: Becoming a stronger
citizen and member of your community.
• The second important question the authors suggested you ponder: "What are the
profound principles upon which the stewardship perspective is based?" Which is not
one of the four stewardship principles? -✓✓Discipleship
• Of the four stewardship principles, if followed wisely, which is our gift back to God? -
✓✓Accountability
• The text suggests creating a budget that includes at least a percent allocation to long-
term savings. -✓✓10
• What does the author believe is the biggest financial mistake made by recent
graduates? -✓✓Buying a house beyond their means.
• Most financial planners recommend worth of living expenses set aside in a savings or
checking account as an emergency fund. -✓✓three to six months
• In the reading, the story of Elder Robert D. Hales and his new bride was shared. He
was in the air force and they'd missed Christmas together. What did he want to buy his
wife? -✓✓A dress
• What budget category do the authors suggest commonly gets overlooked? -
✓✓Miscellaneous
• The authors recommend the investing mantra "get rich slowly." They recommend
avoiding which of the following strategies? -✓✓Speculation
• Which of the following statements about compound interest were made in the reading?
Select all that apply. -✓✓A marvelous work and a wonder
Eighth wonder of the world
Interest earning interest
• What should setting goals involve? -✓✓Process of understanding yourself and your
family.
Trying to understand what God wants you to accomplish.
, • What does the "S" in SMART goals refer to? -✓✓Specific
• Which of the following financial elements are part of developing a plan of action?
Select all that apply. -✓✓Budget
Planning for big-ticket purchases
Plan for managing debt
Plan for insurance
Investment plan
Plan for retirement
• Which of the following are Principles of Provident Living? Select all that apply. -
✓✓Being content with what you have
Avoiding excessive debt
Preparing for rainy-day emergencies
• All family financial records should be kept forever. -✓✓False
• What is not an example of a fixed expense? -✓✓Food
• What would not be categorized as a variable expense? -✓✓Insurance payment
• One of the most often neglected budget categories is miscellaneous (the category for
unexpected expenses). -✓✓True
• Which of the following principles should guide effective family budgets? Select all that
apply. -✓✓Spend less than you earn.
Keep good records.
Use a budgeting method that meets individual and family needs.
• "Mad money" should be a budget category even though you aren't responsible for how
it is spent. -✓✓True
• For those who find living within a budget difficult, which of the following is the most
straightforward method? -✓✓Envelope method
• Attributes of the best budgeting method include which of the following? Select all that
apply. -✓✓Low cost
Allow downloading of bills from banks and credit card companies
Minimize the time spent on finances
Relatively easy to use
• Which principle can help with us not buying things we don't need or haven't budgeted
for? -✓✓HALT
(2026) | Full Test Bank with Verified
Solutions | Grade A+
• The authors suggested four answers to the question, "Why should I learn about family
finance?" Which is not one of the four reasons? -✓✓Community: Becoming a stronger
citizen and member of your community.
• The second important question the authors suggested you ponder: "What are the
profound principles upon which the stewardship perspective is based?" Which is not
one of the four stewardship principles? -✓✓Discipleship
• Of the four stewardship principles, if followed wisely, which is our gift back to God? -
✓✓Accountability
• The text suggests creating a budget that includes at least a percent allocation to long-
term savings. -✓✓10
• What does the author believe is the biggest financial mistake made by recent
graduates? -✓✓Buying a house beyond their means.
• Most financial planners recommend worth of living expenses set aside in a savings or
checking account as an emergency fund. -✓✓three to six months
• In the reading, the story of Elder Robert D. Hales and his new bride was shared. He
was in the air force and they'd missed Christmas together. What did he want to buy his
wife? -✓✓A dress
• What budget category do the authors suggest commonly gets overlooked? -
✓✓Miscellaneous
• The authors recommend the investing mantra "get rich slowly." They recommend
avoiding which of the following strategies? -✓✓Speculation
• Which of the following statements about compound interest were made in the reading?
Select all that apply. -✓✓A marvelous work and a wonder
Eighth wonder of the world
Interest earning interest
• What should setting goals involve? -✓✓Process of understanding yourself and your
family.
Trying to understand what God wants you to accomplish.
, • What does the "S" in SMART goals refer to? -✓✓Specific
• Which of the following financial elements are part of developing a plan of action?
Select all that apply. -✓✓Budget
Planning for big-ticket purchases
Plan for managing debt
Plan for insurance
Investment plan
Plan for retirement
• Which of the following are Principles of Provident Living? Select all that apply. -
✓✓Being content with what you have
Avoiding excessive debt
Preparing for rainy-day emergencies
• All family financial records should be kept forever. -✓✓False
• What is not an example of a fixed expense? -✓✓Food
• What would not be categorized as a variable expense? -✓✓Insurance payment
• One of the most often neglected budget categories is miscellaneous (the category for
unexpected expenses). -✓✓True
• Which of the following principles should guide effective family budgets? Select all that
apply. -✓✓Spend less than you earn.
Keep good records.
Use a budgeting method that meets individual and family needs.
• "Mad money" should be a budget category even though you aren't responsible for how
it is spent. -✓✓True
• For those who find living within a budget difficult, which of the following is the most
straightforward method? -✓✓Envelope method
• Attributes of the best budgeting method include which of the following? Select all that
apply. -✓✓Low cost
Allow downloading of bills from banks and credit card companies
Minimize the time spent on finances
Relatively easy to use
• Which principle can help with us not buying things we don't need or haven't budgeted
for? -✓✓HALT
