Question 1

When creating a personal balance sheet, which of the following is considered to be a personal possession asset?

Accepted Answer

A)  A five-year-old television set 
B)  A home 
C)  Cash in a checking account 
D)  Retirement accounts 
E)  Vacation property 
A)  A five-year-old television set 
B)  A home 
C)  Cash in a checking account 
D)  Retirement accounts 
E)  Vacation property

Question 2

A current ratio of 2 means

Accepted Answer

A)  2% from each paycheck is available for savings. 
B)  The minimum payment for a credit card is 2% of the balance. 
C)  2 months of living expenses are available in case of emergency. 
D)  Net worth equals 2 times the amount of debt. 
E)  $2 in liquid assets are available for every $1 of current liabilities. 
A)  2% from each paycheck is available for savings. 
B)  The minimum payment for a credit card is 2% of the balance. 
C)  2 months of living expenses are available in case of emergency. 
D)  Net worth equals 2 times the amount of debt. 
E)  $2 in liquid assets are available for every $1 of current liabilities.

Question 3

An organized system of financial records provides a basis for reducing credit card usage.

Accepted Answer

A) True 
 B)False

Question 4

One method to spend more money is to deduct an amount automatically from your salary in a direct deposit system.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  W-2 forms 
B)  Personal financial statements 
C)  Warranties 
D)  Marriage certificates 
E)  Bank statements 
A)  W-2 forms 
B)  Personal financial statements 
C)  Warranties 
D)  Marriage certificates 
E)  Bank statements

Question 6

Disposable income equals

Accepted Answer

A)  Gross income. 
B)  Disposable income. 
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)  Disposable income. 
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

When creating a budget, it is important to save the amount you have left at the end of the month.

Accepted Answer

A) True 
 B)False

Question 8

In an organized system of financial records, medical information belongs in a home file.

Accepted Answer

A) True 
 B)False

Question 9

The document that would tell you what you received and spent over the past month 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 10

Patrick Guitman has a net worth of $145,000 and liabilities of $155,000. What are his total assets?

Accepted Answer

A)  $10,000 
B)  $145,000 
C)  $155,000 
D)  $200,000 
E)  $300,000 
A)  $10,000 
B)  $145,000 
C)  $155,000 
D)  $200,000 
E)  $300,000

Question 11

The amount you would have left if all assets were sold and all debts were paid in full is called your

Accepted Answer

A)  Net assets. 
B)  Net worth. 
C)  Total liabilities. 
D)  Total income. 
E)  Budgeted expenses. 
A)  Net assets. 
B)  Net worth. 
C)  Total liabilities. 
D)  Total income. 
E)  Budgeted expenses.

Question 12

A budget system that involves envelopes, folders, or containers to hold money or slips of paper is called a

Accepted Answer

A)  Mental budget. 
B)  Physical budget. 
C)  Written budget. 
D)  Digital budget. 
E)  Allocated budget. 
A)  Mental budget. 
B)  Physical budget. 
C)  Written budget. 
D)  Digital budget. 
E)  Allocated budget.

Question 13

Which of the following is most correct?

Accepted Answer

A)  A current budget belongs in your safe deposit box. 
B)  A warranty belongs in a safe deposit box. 
C)  Adoption papers belong in a home file. 
D)  A death certificate should be kept in a home file. 
E)  Tax records belong in a home file.
F) A current budget belongs in your safe deposit box
G) Adoption papers belong in a home file 
A)  A current budget belongs in your safe deposit box. 
B)  A warranty belongs in a safe deposit box. 
C)  Adoption papers belong in a home file. 
D)  A death certificate should be kept in a home file. 
E)  Tax records belong in a home file.
F) A current budget belongs in your safe deposit box
G) Adoption papers belong in a home file

Question 14

Which of the following is a component of money management?

Accepted Answer

A)  Storing and maintaining personal financial records and documents. 
B)  Creating a balance sheet. 
C)  Creating and implementing a plan for spending and saving. 
D)  Creating a cash flow statement. 
E)  All of the above are components of money management. 
A)  Storing and maintaining personal financial records and documents. 
B)  Creating a balance sheet. 
C)  Creating and implementing a plan for spending and saving. 
D)  Creating a cash flow statement. 
E)  All of the above are components of money management.

Question 15

Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards, auto loans, and other debt (except mortgage)?

Accepted Answer

A)  Debt ratio 
B)  Current ratio 
C)  Liquidity ratio 
D)  Debt payments ratio 
E)  Savings ratio 
A)  Debt ratio 
B)  Current ratio 
C)  Liquidity ratio 
D)  Debt payments ratio 
E)  Savings ratio

Question 16

The document that would report your current financial position 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 17

Programs are available to help low-income people around the world improve their money management skills or financial literacy.

Accepted Answer

A) True 
 B)False

Question 18

The money left over after paying for housing, food, and other necessities is called

Accepted Answer

A)  Monthly savings. 
B)  Discretionary income. 
C)  Disposable income. 
D)  Gross income. 
E)  Take-home pay. 
A)  Monthly savings. 
B)  Discretionary income. 
C)  Disposable income. 
D)  Gross income. 
E)  Take-home pay.

Question 19

A balance sheet reports what an individual or family owns and owes.

Accepted Answer

A) True 
 B)False

Question 20

Brokerage statements are an example of a(n) ____________ record.

Accepted Answer

A)  investment 
B)  insurance 
C)  estate planning 
D)  tax 
E)  consumer purchase 
A)  investment 
B)  insurance 
C)  estate planning 
D)  tax 
E)  consumer purchase

When creating a personal balance sheet, which of the following is considered to be a personal possession asset?

A current ratio of 2 means

An organized system of financial records provides a basis for reducing credit card usage.

One method to spend more money is to deduct an amount automatically from your salary in a direct deposit system.

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

Disposable income equals

When creating a budget, it is important to save the amount you have left at the end of the month.

In an organized system of financial records, medical information belongs in a home file.

The document that would tell you what you received and spent over the past month is the

Patrick Guitman has a net worth of $145,000 and liabilities of $155,000. What are his total assets?

The amount you would have left if all assets were sold and all debts were paid in full is called your

A budget system that involves envelopes, folders, or containers to hold money or slips of paper is called a

Which of the following is most correct?

Which of the following is a component of money management?

Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards, auto loans, and other debt (except mortgage)?

The document that would report your current financial position is the

Programs are available to help low-income people around the world improve their money management skills or financial literacy.

The money left over after paying for housing, food, and other necessities is called

A balance sheet reports what an individual or family owns and owes.

Brokerage statements are an example of a(n) ____________ record.

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

When creating a personal balance sheet, which of the following is considered to be a personal possession asset?

A current ratio of 2 means

An organized system of financial records provides a basis for reducing credit card usage.

One method to spend more money is to deduct an amount automatically from your salary in a direct deposit system.

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

Disposable income equals

When creating a budget, it is important to save the amount you have left at the end of the month.

In an organized system of financial records, medical information belongs in a home file.

The document that would tell you what you received and spent over the past month is the

Patrick Guitman has a net worth of $145,000 and liabilities of $155,000. What are his total assets?

The amount you would have left if all assets were sold and all debts were paid in full is called your

A budget system that involves envelopes, folders, or containers to hold money or slips of paper is called a

Which of the following is most correct?

Which of the following is a component of money management?

Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards, auto loans, and other debt (except mortgage)?

The document that would report your current financial position is the

Programs are available to help low-income people around the world improve their money management skills or financial literacy.

The money left over after paying for housing, food, and other necessities is called

A balance sheet reports what an individual or family owns and owes.

Brokerage statements are an example of a(n) ____________ record.

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