Posted by & filed under Intro to Personal Finance (Grable & Palmer), Personal Finance.

This 11:08 YouTube video talks about embracing debt to create wealth. Although conventional wisdom talks about avoiding debt, this video explains how the rich use debt to create more wealth by using different strategies.

 

https://www.youtube.com/watch?v=nZ4SAXgUrIc&t=7s

Multiple Choice Questions

 

  1. The average amount of debt per household in the US is
  • $10,000
  • $5315
  • $7315
  • $20,000
  1. According to the video selling goods made overseas is
  • Based on debt since the goods are not paid for in cash
  • Based on complicated arrangements between the buyer and seller
  • Based on the condition that the seller will get paid only if there is a profit
  • Based on the goodwill of the buyer only
  1. When it comes to carrying mortgages, debt can be good
  • Because it means unlimited capacity to borrow more money from the banks
  • Because it means bad debts in the past have limited effect on the borrower
  • Because it means many loopholes for the borrower especially when it comes to paying taxes
  • Because it means mortgages always make money for the borrowers
  1. Borrowing a stock from the broker and returning it when the price of the stock has gone down is known as
  • Shorting a stock
  • Gaming a stock
  • Buy low, sell high strategy
  • Playing a stock
  1. When one deals in the foreign exchange market, which is a true statement?
  • For every dollar that is used for trading in the foreign exchange market one can borrow up to $2000
  • For every dollar that is used for trading in the foreign exchange market one can borrow up to $3000
  • For every dollar that is used for trading in the foreign exchange market one can borrow up to $3000
  • For every dollar that is used for trading in the foreign exchange market one can borrow up to $1000

 

 

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