Question 1

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

Accepted Answer

A) $11,000 
B) $156,000 
C) $167,000 
D) $323,000 
E) $452,000 
A) $11,000 
B) $156,000 
C) $167,000 
D) $323,000 
E) $452,000

Question 2

Jeff Willis has a budget that he follows each month.He has used Microsoft's Money to help him determine what he wants to spend each month.At the end of the month,Money automatically compares what he budgeted with what he spent.Jeff can also graph these results if he wants to.What type of budget has Jeff created?

Accepted Answer

A) mental budget 
B) physical budget 
C) written budget 
D) computerized budget 
E) none of the answers 
A) mental budget 
B) physical budget 
C) written budget 
D) computerized budget 
E) none of the answers

Question 3

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 4

Karen Price has created a financial statement for herself that lists all of the assets she owns as well as the debts she owes.This would be an example of:

Accepted Answer

A) money management. 
B) opportunity cost analysis. 
C) a balance sheet. 
D) a liquidation exercise. 
E) a budget variancE. 
A) money management. 
B) opportunity cost analysis. 
C) a balance sheet. 
D) a liquidation exercise. 
E) a budget variancE.

Question 5

When preparing her monthly budget,Marge Kent has a total spending allowance of $4,600.Each month she pays $1,200 in rent,$60 for cable television and Internet service,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

Accepted Answer

A) 6 percent 
B) 12 percent 
C) 27 percent 
D) 33 percent 
E) 40 percent 
A) 6 percent 
B) 12 percent 
C) 27 percent 
D) 33 percent 
E) 40 percent

Question 6

An investment account that increases from $3,000 to $3,271 in one year is earning approximately ___ percent annual interest.

Accepted Answer

A) 3 
B) 5 
C) 7 
D) 9 
E) 11 
A) 3 
B) 5 
C) 7 
D) 9 
E) 11

Question 7

A person's net worth is computed by:

Accepted Answer

A) adding assets and liabilities. 
B) deducting current living expenses from total assets. 
C) subtracting total liabilities from total assets. 
D) subtracting assets from current liabilities. 
E) adding liabilities and budgeted expenses. 
A) adding assets and liabilities. 
B) deducting current living expenses from total assets. 
C) subtracting total liabilities from total assets. 
D) subtracting assets from current liabilities. 
E) adding liabilities and budgeted expenses.

Question 8

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is this decision's ________ cost.

Accepted Answer

A) fixed 
B) opportunity 
C) variable 
D) transaction 
E) total 
A) fixed 
B) opportunity 
C) variable 
D) transaction 
E) total

Question 9

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 the answers 
A) birth certificate 
B) marriage license 
C) certificate of deposit 
D) social security card 
E) all of the answers

Question 10

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 personal 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 11

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 real estate 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 12

Items that you own with a monetary worth are referred to as:

Accepted Answer

A) liabilities. 
B) variable expenses. 
C) net worth. 
D) income. 
E) assets. 
A) liabilities. 
B) variable expenses. 
C) net worth. 
D) income. 
E) assets.

Question 13

Which of the following would most likely be classified as a current liability?

Accepted Answer

A) monthly balance due on a credit card 
B) total amount of a mortgage 
C) balance of a student loan 
D) total of a home improvement loan 
E) balance of an auto loan 
A) monthly balance due on a credit card 
B) total amount of a mortgage 
C) balance of a student loan 
D) total of a home improvement loan 
E) balance of an auto loan

Question 14

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000.The difference between these two is $14,000.The $14,000 could be referred to as her:

Accepted Answer

A) nest egg. 
B) total assets. 
C) adjusted assets. 
D) debt equity. 
E) net worth. 
A) nest egg. 
B) total assets. 
C) adjusted assets. 
D) debt equity. 
E) net worth.

Question 15

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

Question 16

Payments that do not vary from month to month are ____________ expenses.

Accepted Answer

A) fixed 
B) usage 
C) variable 
D) luxury 
E) output 
A) fixed 
B) usage 
C) variable 
D) luxury 
E) output

Question 17

Which of the following financial documents would most likely be stored in a safe- deposit box?

Accepted Answer

A) W-2 forms 
B) personal financial statements 
C) warranties 
D) savings certificates 
E) checking account statements 
A) W-2 forms 
B) personal financial statements 
C) warranties 
D) savings certificates 
E) checking account statements

Question 18

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Accepted Answer

A) True 
 B)False

Question 19

A person has $1,250 in liabilities,monthly savings of $200,and monthly gross income of $2,500.What is the person's savings ratio?

Accepted Answer

A) 0.52 
B) 0.08 
C) 2.35 
D) 0.16 
E) 12.58 
A) 0.52 
B) 0.08 
C) 2.35 
D) 0.16 
E) 12.58

Question 20

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

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

Which of the following would be considered a fixed expense?

Karen Price has created a financial statement for herself that lists all of the assets she owns as well as the debts she owes.This would be an example of:

When preparing her monthly budget,Marge Kent has a total spending allowance of $4,600.Each month she pays $1,200 in rent,$60 for cable television and Internet service,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

An investment account that increases from $3,000 to $3,271 in one year is earning approximately ___ percent annual interest.

A person's net worth is computed by:

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is this decision's ________ cost.

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

Items that you own with a monetary worth are referred to as:

Which of the following would most likely be classified as a current liability?

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000.The difference between these two is $14,000.The $14,000 could be referred to as her:

Payments that do not vary from month to month are ____________ expenses.

Which of the following financial documents would most likely be stored in a safe- deposit box?

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

A person has $1,250 in liabilities,monthly savings of $200,and monthly gross income of $2,500.What is the person's savings ratio?

Warranties are commonly associated with ____________ purchases.

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

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Exam 3: Money Management Strategy: Financial Statements and Budgeting

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

Which of the following would be considered a fixed expense?

Karen Price has created a financial statement for herself that lists all of the assets she owns as well as the debts she owes.This would be an example of:

When preparing her monthly budget,Marge Kent has a total spending allowance of $4,600.Each month she pays $1,200 in rent,$60 for cable television and Internet service,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

An investment account that increases from $3,000 to $3,271 in one year is earning approximately ___ percent annual interest.

A person's net worth is computed by:

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is this decision's ________ cost.

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

Items that you own with a monetary worth are referred to as:

Which of the following would most likely be classified as a current liability?

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000.The difference between these two is $14,000.The $14,000 could be referred to as her:

Payments that do not vary from month to month are ____________ expenses.

Which of the following financial documents would most likely be stored in a safe- deposit box?

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

A person has $1,250 in liabilities,monthly savings of $200,and monthly gross income of $2,500.What is the person's savings ratio?

Warranties are commonly associated with ____________ purchases.

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