Question 1

Take-home pay is a person's earnings after deductions for taxes and other items.

Accepted Answer

A) True 
 B)False

Question 2

An individual retirement account is an example of a(n) ____________ asset.

Accepted Answer

A)  personal 
B)  common 
C)  investment 
D)  household 
E)  budgeted 
A)  personal 
B)  common 
C)  investment 
D)  household 
E)  budgeted

Question 3

Explain why opportunity cost is an important concept in money management.

Accepted Answer

The answer of Explain why opportunity cost is an important...

Question 4

Changes in the cost of living are:

Accepted Answer

A)  different in various geographic areas. 
B)  the same for different locations. 
C)  constant from month to month. 
D)  the same for all goods and services. 
E)  not a factor when preparing a budget. 
A)  different in various geographic areas. 
B)  the same for different locations. 
C)  constant from month to month. 
D)  the same for all goods and services. 
E)  not a factor when preparing a budget.

Question 5

If a family planned to spend $370 for food during March but only spent $348, this difference would be referred to as a:

Accepted Answer

A)  variance. 
B)  deficit. 
C)  fixed living expense. 
D)  budget reduction. 
E)  contribution to net worth. 
A)  variance. 
B)  deficit. 
C)  fixed living expense. 
D)  budget reduction. 
E)  contribution to net worth.

Question 6

Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $108,000, the value of her personal possessions is $62,000 and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $9,500 and the value of her long term liabilities is $68,000. What is Jamie's net worth?

Accepted Answer

A)  $267,500 
B)  $105,500 
C)  $170,000 
D)  $205,500 
E)  None of these 
A)  $267,500 
B)  $105,500 
C)  $170,000 
D)  $205,500 
E)  None of these

Question 7

Which of the following is(are) typically considered to be a personal financial record?

Accepted Answer

A)  Birth certificate 
B)  Marriage license 
C)  Certificate of deposit 
D)  Social Security card 
E)  All of these 
A)  Birth certificate 
B)  Marriage license 
C)  Certificate of deposit 
D)  Social Security card 
E)  All of these

Question 8

Which of the following items is something that would typically not be stored in a safety deposit box?

Accepted Answer

A)  Rare coins 
B)  Copy of will 
C)  Automobile title 
D)  Marriage certificate 
E)  Checkbook 
A)  Rare coins 
B)  Copy of will 
C)  Automobile title 
D)  Marriage certificate 
E)  Checkbook

Question 9

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Accepted Answer

A)  0.28 
B)  2.57 
C)  0.39 
D)  0.64 
E)  1.25 
A)  0.28 
B)  2.57 
C)  0.39 
D)  0.64 
E)  1.25

Question 10

Which of the following would be considered a fixed expense?

Accepted Answer

A)  Electric bill 
B)  Cell phone bill on a plan without unlimited minutes 
C)  Mortgage payment 
D)  Gas bill 
E)  Medical expenses 
A)  Electric bill 
B)  Cell phone bill on a plan without unlimited minutes 
C)  Mortgage payment 
D)  Gas bill 
E)  Medical expenses

Question 11

A personal balance sheet presents:

Accepted Answer

A)  amounts budgeted for spending. 
B)  income and expenses for a period of time. 
C)  earnings on savings and investments. 
D)  items owned and amounts owed. 
E)  family financial goals. 
A)  amounts budgeted for spending. 
B)  income and expenses for a period of time. 
C)  earnings on savings and investments. 
D)  items owned and amounts owed. 
E)  family financial goals.

Question 12

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her investment assets?

Accepted Answer

A)  $2,050 
B)  $98,000 
C)  $27,800 
D)  $44,050 
E)  $171,900 
A)  $2,050 
B)  $98,000 
C)  $27,800 
D)  $44,050 
E)  $171,900

Question 13

Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is the total value of her debts?

Accepted Answer

A)  $267,500 
B)  $105,500 
C)  $162,000 
D)  $205,500 
E)  None of these 
A)  $267,500 
B)  $105,500 
C)  $162,000 
D)  $205,500 
E)  None of these

Question 14

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

Accepted Answer

A)  0.5 
B)  5.0 
C)  6.0 
D)  10.0 
E)  11.0 
A)  0.5 
B)  5.0 
C)  6.0 
D)  10.0 
E)  11.0

Question 15

Warranties are commonly associated with ____________ purchases.

Accepted Answer

A)  investment 
B)  insurance 
C)  credit 
D)  financial service 
E)  consumer 
A)  investment 
B)  insurance 
C)  credit 
D)  financial service 
E)  consumer

Question 16

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

Accepted Answer

A)  $45,000. 
B)  $23,000. 
C)  $22,000. 
D)  $67,000. 
E)  $41,000. 
A)  $45,000. 
B)  $23,000. 
C)  $22,000. 
D)  $67,000. 
E)  $41,000.

Question 17

About what percent of Americans have no emergency fund?

Accepted Answer

A)  5 
B)  10 
C)  25 
D)  40 
E)  50 
A)  5 
B)  10 
C)  25 
D)  40 
E)  50

Question 18

In order to determine net worth, you would create what kind of report?

Accepted Answer

A)  Written budget 
B)  Balance sheet 
C)  Cash flow statement 
D)  SWOT analysis 
E)  Physical budget 
A)  Written budget 
B)  Balance sheet 
C)  Cash flow statement 
D)  SWOT analysis 
E)  Physical budget

Question 19

A budget deficit would result when a person's or family's:

Accepted Answer

A)  actual expenses are less than planned expenses. 
B)  actual expenses are greater than planned expenses. 
C)  actual expenses equal planned expenses. 
D)  assets exceed liabilities. 
E)  net worth decreases. 
A)  actual expenses are less than planned expenses. 
B)  actual expenses are greater than planned expenses. 
C)  actual expenses equal planned expenses. 
D)  assets exceed liabilities. 
E)  net worth decreases.

Question 20

Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is the total value of her assets?

Accepted Answer

A)  $267,500 
B)  $105,500 
C)  $162,000 
D)  $205,500 
E)  None of these 
A)  $267,500 
B)  $105,500 
C)  $162,000 
D)  $205,500 
E)  None of these

Take-home pay is a person's earnings after deductions for taxes and other items.

An individual retirement account is an example of a(n) ____________ asset.

Explain why opportunity cost is an important concept in money management.

Changes in the cost of living are:

If a family planned to spend $370 for food during March but only spent $348, this difference would be referred to as a:

Which of the following is(are) typically considered to be a personal financial record?

Which of the following items is something that would typically not be stored in a safety deposit box?

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Which of the following would be considered a fixed expense?

A personal balance sheet presents:

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

Warranties are commonly associated with ____________ purchases.

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

About what percent of Americans have no emergency fund?

In order to determine net worth, you would create what kind of report?

A budget deficit would result when a person's or family's:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Take-home pay is a person's earnings after deductions for taxes and other items.

An individual retirement account is an example of a(n) ____________ asset.

Explain why opportunity cost is an important concept in money management.

Changes in the cost of living are:

If a family planned to spend $370 for food during March but only spent $348, this difference would be referred to as a:

Which of the following is(are) typically considered to be a personal financial record?

Which of the following items is something that would typically not be stored in a safety deposit box?

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Which of the following would be considered a fixed expense?

A personal balance sheet presents:

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

Warranties are commonly associated with ____________ purchases.

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

About what percent of Americans have no emergency fund?

In order to determine net worth, you would create what kind of report?

A budget deficit would result when a person's or family's:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters