Question 1

The two personal financial statements that you create yourself are the personal balance sheet and a credit card payoff statement.

Accepted Answer

A) True 
 B)False  False

Question 2

The statement that includes liquid assets, real estate, personal possessions, and investment assets is known as a

Accepted Answer

A)  Personal balance sheet. 
B)  Bank statement. 
C)  Budget. 
D)  Cash flow statement. 
E)  Time value of money report. 
A)  Personal balance sheet. 
B)  Bank statement. 
C)  Budget. 
D)  Cash flow statement. 
E)  Time value of money report. A

Question 3

The inability to pay debts when they are due because liabilities far exceed the value of assets is called

Accepted Answer

A)  Liabilities. 
B)  Insolvency. 
C)  Net worth. 
D)  Cash flow. 
E)  Liquid assets. 
A)  Liabilities. 
B)  Insolvency. 
C)  Net worth. 
D)  Cash flow. 
E)  Liquid assets. B

Question 4

Given the following information, calculate the debt payments ratio: Liabilities = $25,000
Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000
Current liabilities = $2,000
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

Accepted Answer

A)  33.79% 
B)  3.06% 
C)  2.40% 
D)  34.78% 
E)  21.71% 
A)  33.79% 
B)  3.06% 
C)  2.40% 
D)  34.78% 
E)  21.71%

Question 5

An example of a fixed expense is

Accepted Answer

A)  Medical expenses. 
B)  Gifts. 
C)  Utilities. 
D)  A mortgage payment. 
E)  Recreation. 
A)  Medical expenses. 
B)  Gifts. 
C)  Utilities. 
D)  A mortgage payment. 
E)  Recreation.

Question 6

Discretionary income equals

Accepted Answer

A)  Gross income. 
B)  Take-home pay. 
C)  The amount being saved each month. 
D)  Money left over after paying for housing, food, and other necessities. 
E)  Social Security taxes. 
A)  Gross income. 
B)  Take-home pay. 
C)  The amount being saved each month. 
D)  Money left over after paying for housing, food, and other necessities. 
E)  Social Security taxes.

Question 7

The number of personal financial records a household has to organize may seem overwhelming. How long should you keep documents relating to the purchase and sale of real estate?

Accepted Answer

A)  Until the mortgage is paid off 
B)  Until you move out of the house 
C)  Three years 
D)  Seven years 
E)  Indefinitely 
A)  Until the mortgage is paid off 
B)  Until you move out of the house 
C)  Three years 
D)  Seven years 
E)  Indefinitely

Question 8

Given the following information, calculate the current ratio: Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000
Current liabilities = $2,000
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

Accepted Answer

A)  2.44 
B)  2.50 
C)  6.25 
D)  0.16 
E)  0.41 
A)  2.44 
B)  2.50 
C)  6.25 
D)  0.16 
E)  0.41

Question 9

One method to save more money is to write a check each payday and deposit it in a separate savings account.

Accepted Answer

A) True 
 B)False

Question 10

The difference between the amount budgeted and the actual amount received or spent is called the

Accepted Answer

A)  Budget variance. 
B)  Cash outflow. 
C)  Income. 
D)  Cash inflow. 
E)  Variable expense. 
A)  Budget variance. 
B)  Cash outflow. 
C)  Income. 
D)  Cash inflow. 
E)  Variable expense.

Question 11

Current liabilities are the debts you must pay within a short time, usually less than a year.

Accepted Answer

A) True 
 B)False

Question 12

How long should you keep documents relating to investments?

Accepted Answer

A)  No need to since the broker probably has a copy. 
B)  As long as you these items. 
C)  Seven years. 
D)  Ten years. 
E)  Permanently. 
A)  No need to since the broker probably has a copy. 
B)  As long as you these items. 
C)  Seven years. 
D)  Ten years. 
E)  Permanently.

Question 13

A home file should be used to keep

Accepted Answer

A)  All financial documents and records. 
B)  Financial records for current needs. 
C)  Documents that require maximum security. 
D)  Obsolete financial documents. 
E)  Records that are difficult to replace. 
A)  All financial documents and records. 
B)  Financial records for current needs. 
C)  Documents that require maximum security. 
D)  Obsolete financial documents. 
E)  Records that are difficult to replace.

Question 14

In an organized system of financial records, credit card records belong in a safe deposit box.

Accepted Answer

A) True 
 B)False

Question 15

Annual investment account statements should be shredded.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following are two personal financial statements that you create yourself?

Accepted Answer

A)  Budget and credit card statements 
B)  Personal balance sheet and cash flow statement 
C)  Checkbook and budget 
D)  Tax returns 
E)  Bank statement and a balance sheet 
A)  Budget and credit card statements 
B)  Personal balance sheet and cash flow statement 
C)  Checkbook and budget 
D)  Tax returns 
E)  Bank statement and a balance sheet

Question 17

The document that would be most useful to plan spending and saving to achieve financial goals is the

Accepted Answer

A)  Balance sheet. 
B)  Cash flow statement. 
C)  Budget. 
D)  Bank statement. 
E)  Credit card statement. 
A)  Balance sheet. 
B)  Cash flow statement. 
C)  Budget. 
D)  Bank statement. 
E)  Credit card statement.

Question 18

Given the following information, calculate the liquidity ratio: Liabilities = $25,000
Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000
Current liabilities = $2,600
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

Accepted Answer

A)  0.16 
B)  0.41 
C)  2.44 
D)  2.50 
E)  6.25 
A)  0.16 
B)  0.41 
C)  2.44 
D)  2.50 
E)  6.25

Question 19

When household budgets must be cut, which of the following categories would be most difficult to cut?

Accepted Answer

A)  Vacations 
B)  Lawn services 
C)  Cable 
D)  Charitable donations 
E)  Auto insurance 
A)  Vacations 
B)  Lawn services 
C)  Cable 
D)  Charitable donations 
E)  Auto insurance

Question 20

Money management refers to annual financial activities necessary to manage personal economic resources.

Accepted Answer

A) True 
 B)False

The two personal financial statements that you create yourself are the personal balance sheet and a credit card payoff statement.

The statement that includes liquid assets, real estate, personal possessions, and investment assets is known as a

The inability to pay debts when they are due because liabilities far exceed the value of assets is called

Given the following information, calculate the debt payments ratio: Liabilities = $25,000 Liquid assets = $5,000 Monthly credit payments = $800 Monthly savings = $760 Net worth = $75,000 Current liabilities = $2,000 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,050

An example of a fixed expense is

Discretionary income equals

The number of personal financial records a household has to organize may seem overwhelming. How long should you keep documents relating to the purchase and sale of real estate?

Given the following information, calculate the current ratio: Liquid assets = $5,000 Monthly credit payments = $800 Monthly savings = $760 Net worth = $75,000 Current liabilities = $2,000 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,050

One method to save more money is to write a check each payday and deposit it in a separate savings account.

The difference between the amount budgeted and the actual amount received or spent is called the

Current liabilities are the debts you must pay within a short time, usually less than a year.

How long should you keep documents relating to investments?

A home file should be used to keep

In an organized system of financial records, credit card records belong in a safe deposit box.

Annual investment account statements should be shredded.

Which of the following are two personal financial statements that you create yourself?

The document that would be most useful to plan spending and saving to achieve financial goals is the

Given the following information, calculate the liquidity ratio: Liabilities = $25,000 Liquid assets = $5,000 Monthly credit payments = $800 Monthly savings = $760 Net worth = $75,000 Current liabilities = $2,600 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,050

When household budgets must be cut, which of the following categories would be most difficult to cut?

Money management refers to annual financial activities necessary to manage personal economic resources.

Personal Financial Planning in Action

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters

Exam 2: Money Management Skills

The two personal financial statements that you create yourself are the personal balance sheet and a credit card payoff statement.

The statement that includes liquid assets, real estate, personal possessions, and investment assets is known as a

The inability to pay debts when they are due because liabilities far exceed the value of assets is called

Given the following information, calculate the debt payments ratio: Liabilities = $25,000 Liquid assets = $5,000 Monthly credit payments = $800 Monthly savings = $760 Net worth = $75,000 Current liabilities = $2,000 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,050

An example of a fixed expense is

Discretionary income equals

The number of personal financial records a household has to organize may seem overwhelming. How long should you keep documents relating to the purchase and sale of real estate?

Given the following information, calculate the current ratio: Liquid assets = $5,000 Monthly credit payments = $800 Monthly savings = $760 Net worth = $75,000 Current liabilities = $2,000 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,050

One method to save more money is to write a check each payday and deposit it in a separate savings account.

The difference between the amount budgeted and the actual amount received or spent is called the

Current liabilities are the debts you must pay within a short time, usually less than a year.

How long should you keep documents relating to investments?

A home file should be used to keep

In an organized system of financial records, credit card records belong in a safe deposit box.

Annual investment account statements should be shredded.

Which of the following are two personal financial statements that you create yourself?

The document that would be most useful to plan spending and saving to achieve financial goals is the

Given the following information, calculate the liquidity ratio: Liabilities = $25,000 Liquid assets = $5,000 Monthly credit payments = $800 Monthly savings = $760 Net worth = $75,000 Current liabilities = $2,600 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,050

When household budgets must be cut, which of the following categories would be most difficult to cut?

Money management refers to annual financial activities necessary to manage personal economic resources.

Personal Financial Planning in Action

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters