Dave Ramsey Chapt. 1 & 2 Review

The persistent rise in the cost of goods and services.

• Economy

• Uprising

• Inflation

• Deflation

When a person intentionally invests money in a place where it can earn more money.

• Wealth Building

• Sinking Fund

• Savings

• Investment Capital

Save a $500 emergency fund.

• the Fourth Foundation

• the Third Foundation

• the Second Foundation

• the First Foundation

The five steps to financial success.

• Five money myths

• Five banking steps

• Five Foundations

• None of the above

Compares after-tax income to the money people spend on a variety of items.

• Savings rate

• Interest rate

• Net income

• Gross income

Interest paid on interest previously earned.

• simple interest

• compound interest

• percentage interest

• none of the above

Money today has different buying power than the same amount of money in the future.

• simple interest

• compound interest

• principle

• time value of money

Percentage paid to a lender for the use of borrowed money, or the percentage earned on invested principal.

• credit card

• principal

• savings rate

• interest rate

Saving money over time for a large purchase.

• piggy bank

• value of money

• installment loan

• sinking fund

Money set aside and left alone for a "rainy day."

• credit card

• emergency fund

• checking account

• savings account