Question 1

It is not necessary that your values be consistent with your financial and lifestyle goals.

Accepted Answer

A) True 
 B)False  False

Question 2

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth.
​

Accepted Answer

A)  ​$121,025 
B)  ​$129,725 
C)  ​$130,375 
D)  ​$131,025 
A)  ​$121,025 
B)  ​$129,725 
C)  ​$130,375 
D)  ​$131,025 B

Question 3

The concept of "pay myself first," saving and investing before you pay other expenses,is a characteristic of successful financial managers.

Accepted Answer

A) True 
 B)False  True

Question 4

The Thomas family projects a budget deficit of $250 in January and $450 in February with surpluses the rest of the year.Their revolving savings fund should be at least​

Accepted Answer

A)  ​$700. 
B)  ​$450. 
C)  ​$350. 
D)  ​$250. 
A)  ​$700. 
B)  ​$450. 
C)  ​$350. 
D)  ​$250.

Question 5

The asset-to-debt ratio compares total assets with total liabilities and is a broad measure of a household's financial liquidity.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the best example of a well-stated financial goal?​

Accepted Answer

A)  ​Buy a $3,000 computer in 18 months 
B)  ​Purchase a three-bedroom home in five years 
C)  ​Buy a $2,000 stereo 
D)  ​Pay off your credit cards as soon as possible 
A)  ​Buy a $3,000 computer in 18 months 
B)  ​Purchase a three-bedroom home in five years 
C)  ​Buy a $2,000 stereo 
D)  ​Pay off your credit cards as soon as possible

Question 7

In general,tangible assets do not depreciate in value over time.

Accepted Answer

A) True 
 B)False

Question 8

The formula for calculating net worth is​

Accepted Answer

A)  ​income minus expenses. 
B)  ​assets minus liabilities. 
C)  ​income minus liabilities. 
D)  ​assets minus expenses. 
A)  ​income minus expenses. 
B)  ​assets minus liabilities. 
C)  ​income minus liabilities. 
D)  ​assets minus expenses.

Question 9

Paul is a college student who has the following financial information.He would like your help in figuring his surplus for last year.
​
 
​
What is Paul's surplus?
​

Accepted Answer

A)  ​$2,650 
B)  ​$2,200 
C)  ​$1,250 
D)  ​$1,000 
A)  ​$2,650 
B)  ​$2,200 
C)  ​$1,250 
D)  ​$1,000

Question 10

Julie and Alex have compiled their financial records and would like to know if they are living within their level of income.What is their surplus?
​

Accepted Answer

A)  ​$7,100 
B)  ​$8,300 
C)  ​$9500 
D)  ​$12,500 
A)  ​$7,100 
B)  ​$8,300 
C)  ​$9500 
D)  ​$12,500

Question 11

Savings set aside can be categorized as both fixed and variable expenses.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a characteristic of a cash-flow statement?​

Accepted Answer

A)  ​It covers a period of time,usually one month or one year. 
B)  ​It shows if you were able to live within your income for the period covered. 
C)  ​The statement includes three sections: income,expenses,and surplus (or deficit). 
D)  ​All of these. 
A)  ​It covers a period of time,usually one month or one year. 
B)  ​It shows if you were able to live within your income for the period covered. 
C)  ​The statement includes three sections: income,expenses,and surplus (or deficit). 
D)  ​All of these.

Question 13

A debt-payments-to-disposable-income ratio of ____ percent or more is considered to be problematic.

Accepted Answer

A)  ​10 
B)  ​14 
C)  ​15 
D)  ​36 
A)  ​10 
B)  ​14 
C)  ​15 
D)  ​36

Question 14

Financial planning begins by examining one's values.

Accepted Answer

A) True 
 B)False

Question 15

A successful financial plan includes​

Accepted Answer

A)  ​specified values that underlie the plan. 
B)  ​explicitly stated financial goals. 
C)  ​logical and consistent financial strategies. 
D)  ​all of these. 
A)  ​specified values that underlie the plan. 
B)  ​explicitly stated financial goals. 
C)  ​logical and consistent financial strategies. 
D)  ​all of these.

Question 16

A cash-flow statement for a previous year would show whether you were able to live within your income.

Accepted Answer

A) True 
 B)False

Question 17

A debt-to-income ratio of 0.36 or less indicates that disposable income is adequate to make debt repayments.

Accepted Answer

A) True 
 B)False

Question 18

Hillary and Justin Palmer have a long-term goal of saving $6,000 for a down payment on a new vehicle they would like to buy in three years.Which of the following is a short-term goal that is most consistent with this long-term goal?​

Accepted Answer

A)  ​Buy a new car every two years 
B)  ​Save $2,000 this year 
C)  ​Save $1,000 this year 
D)  ​Accumulate $1,500 for a trip to Florida this year 
A)  ​Buy a new car every two years 
B)  ​Save $2,000 this year 
C)  ​Save $1,000 this year 
D)  ​Accumulate $1,500 for a trip to Florida this year

Question 19

The purpose of a revolving savings fund is to​

Accepted Answer

A)  ​save for long-term goals. 
B)  ​accumulate funds for large,irregular expenses. 
C)  ​meet occasional deficits. 
D)  ​both accumulate funds for large,irregular expenses and meet occasional deficits. 
A)  ​save for long-term goals. 
B)  ​accumulate funds for large,irregular expenses. 
C)  ​meet occasional deficits. 
D)  ​both accumulate funds for large,irregular expenses and meet occasional deficits.

Question 20

Wendy Wilson,a successful college graduate,is currently employed in a position paying $49,500 a year.Wendy's annual living expenses are only $42,000 so she has accumulated $7,200 in monetary assets and $27,000 in investment assets since her graduation.Use the liquidity ratio to figure how long Wendy could pay expenses if she were to lose her job.

Accepted Answer

A)  ​Less than three weeks 
B)  ​About two months 
C)  ​Approximately seven months 
D)  ​Approximately eleventh months 
A)  ​Less than three weeks 
B)  ​About two months 
C)  ​Approximately seven months 
D)  ​Approximately eleventh months

It is not necessary that your values be consistent with your financial and lifestyle goals.

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth.

The concept of "pay myself first," saving and investing before you pay other expenses,is a characteristic of successful financial managers.

The Thomas family projects a budget deficit of $250 in January and $450 in February with surpluses the rest of the year.Their revolving savings fund should be at least

The asset-to-debt ratio compares total assets with total liabilities and is a broad measure of a household's financial liquidity.

Which of the following is the best example of a well-stated financial goal?

In general,tangible assets do not depreciate in value over time.

The formula for calculating net worth is

Paul is a college student who has the following financial information.He would like your help in figuring his surplus for last year. What is Paul's surplus?

Julie and Alex have compiled their financial records and would like to know if they are living within their level of income.What is their surplus?

Savings set aside can be categorized as both fixed and variable expenses.

Which of the following is a characteristic of a cash-flow statement?

A debt-payments-to-disposable-income ratio of ____ percent or more is considered to be problematic.

Financial planning begins by examining one's values.

A successful financial plan includes

A cash-flow statement for a previous year would show whether you were able to live within your income.

A debt-to-income ratio of 0.36 or less indicates that disposable income is adequate to make debt repayments.

Hillary and Justin Palmer have a long-term goal of saving $6,000 for a down payment on a new vehicle they would like to buy in three years.Which of the following is a short-term goal that is most consistent with this long-term goal?

The purpose of a revolving savings fund is to

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Exam 3: Financial Statements,tools,and Budgets

It is not necessary that your values be consistent with your financial and lifestyle goals.

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth. ​

The concept of "pay myself first," saving and investing before you pay other expenses,is a characteristic of successful financial managers.

The Thomas family projects a budget deficit of $250 in January and $450 in February with surpluses the rest of the year.Their revolving savings fund should be at least​

The asset-to-debt ratio compares total assets with total liabilities and is a broad measure of a household's financial liquidity.

Which of the following is the best example of a well-stated financial goal?​

In general,tangible assets do not depreciate in value over time.

The formula for calculating net worth is​

Paul is a college student who has the following financial information.He would like your help in figuring his surplus for last year. ​ ​ What is Paul's surplus? ​

Julie and Alex have compiled their financial records and would like to know if they are living within their level of income.What is their surplus? ​

Savings set aside can be categorized as both fixed and variable expenses.

Which of the following is a characteristic of a cash-flow statement?​

A debt-payments-to-disposable-income ratio of ____ percent or more is considered to be problematic.

Financial planning begins by examining one's values.

A successful financial plan includes​

A cash-flow statement for a previous year would show whether you were able to live within your income.

A debt-to-income ratio of 0.36 or less indicates that disposable income is adequate to make debt repayments.

Hillary and Justin Palmer have a long-term goal of saving $6,000 for a down payment on a new vehicle they would like to buy in three years.Which of the following is a short-term goal that is most consistent with this long-term goal?​

The purpose of a revolving savings fund is to​

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth.

The Thomas family projects a budget deficit of $250 in January and $450 in February with surpluses the rest of the year.Their revolving savings fund should be at least

Which of the following is the best example of a well-stated financial goal?

The formula for calculating net worth is

Paul is a college student who has the following financial information.He would like your help in figuring his surplus for last year. What is Paul's surplus?

Julie and Alex have compiled their financial records and would like to know if they are living within their level of income.What is their surplus?

Which of the following is a characteristic of a cash-flow statement?

A successful financial plan includes

Hillary and Justin Palmer have a long-term goal of saving $6,000 for a down payment on a new vehicle they would like to buy in three years.Which of the following is a short-term goal that is most consistent with this long-term goal?

The purpose of a revolving savings fund is to