CHAPTER 1 TEST DAVE RAMSEY 2
CERTIFICATION EVALUATION 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉ debt snowball.
Answer: preferred method of debt repayment; includes a list of all
debts organized from smallest to largest balance; minimum
payments are made to all debts except for the smallest, which is
attacked with the largest possible payments
◉ false.
Answer: you must est. credit in order to buy a house. T/F
◉ false.
Answer: if you are a victim of identity theft, you are only responsible
for paying back half of the debt. T/F
◉ a.
Answer: which of the following is not a factor in determining a FICO
score? a)paying cash for all purchases b)getting a personal loan from
a bank c)using credit cards d)taking out a mortgage on a house
◉ c.
, Answer: which of the following is not a good idea for getting out of
debt? a)quit borrowing money b)get a part-time job or work
overtime c)borrow money from your parents to pay off debt d)sell
something
◉ c.
Answer: which of the following things cannot be done with a debit
card but can be done with a credit card? a)rent a car b)purchase
something online c)go into debt d)purchase an airline ticket
◉ Five Foundations.
Answer: The five steps to financial success
◉ interest rate.
Answer: A rate which is either charged (on debt) or paid (on
investment accounts) for the use of money
◉ sinking fund.
Answer: Saving money over time for a large purchase
◉ compound interest.
Answer: Interest paid on interest previously earned; credited daily,
monthly, quarterly or semiannually
CERTIFICATION EVALUATION 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉ debt snowball.
Answer: preferred method of debt repayment; includes a list of all
debts organized from smallest to largest balance; minimum
payments are made to all debts except for the smallest, which is
attacked with the largest possible payments
◉ false.
Answer: you must est. credit in order to buy a house. T/F
◉ false.
Answer: if you are a victim of identity theft, you are only responsible
for paying back half of the debt. T/F
◉ a.
Answer: which of the following is not a factor in determining a FICO
score? a)paying cash for all purchases b)getting a personal loan from
a bank c)using credit cards d)taking out a mortgage on a house
◉ c.
, Answer: which of the following is not a good idea for getting out of
debt? a)quit borrowing money b)get a part-time job or work
overtime c)borrow money from your parents to pay off debt d)sell
something
◉ c.
Answer: which of the following things cannot be done with a debit
card but can be done with a credit card? a)rent a car b)purchase
something online c)go into debt d)purchase an airline ticket
◉ Five Foundations.
Answer: The five steps to financial success
◉ interest rate.
Answer: A rate which is either charged (on debt) or paid (on
investment accounts) for the use of money
◉ sinking fund.
Answer: Saving money over time for a large purchase
◉ compound interest.
Answer: Interest paid on interest previously earned; credited daily,
monthly, quarterly or semiannually
