Question 1

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)   CheckbookF) A) and E)
G) D) and E)

Question 2

About what percent of Americans have no emergency fund?

Accepted Answer

A)   5
B)   10
C)   25
D)   40
E)   50F) A) and B)
G) B) and E)

Question 3

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

Accepted Answer

A)   personal
B)   common
C)   investment
D)   household
E)   budgetedF) A) and E)
G) B) and C)

Question 4

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 theseF) B) and D)
G) A) and E)

Question 5

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 theseF) A) and D)
G) B) and C)

Question 6

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)   1.25F) A) and C)
G) All of the above

Question 7

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 budgetF) A) and B)
G) B) and E)

Question 8

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 expensesF) B) and C)
G) None of the above

Question 9

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

Accepted Answer

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

Question 10

Warranties are commonly associated with ____________ purchases.

Accepted Answer

A)   investment
B)   insurance
C)   credit
D)   financial service
E)   consumerF) None of the above
G) C) and E)

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.F) C) and E)
G) None of the above

Question 12

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.F) A) and B)
G) A) and C)

Question 13

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)   11.0F) None of the above
G) D) and E)

Question 14

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

Accepted Answer

A) True 
 B)False

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 theseF) B) and E)
G) A) and D)

Question 16

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 theseF) A) and E)
G) A) and D)

Question 17

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.F) A) and B)
G) None of the above

Question 18

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)   $171,900F) All of the above
G) D) and E)

Question 19

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.F) C) and E)
G) B) and D)

Question 20

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.F) B) and E)
G) All of the above

Exam 3: Money Management Strategy: Financial Statements and Budgeting

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

Correct Answer
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About what percent of Americans have no emergency fund?

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

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

Correct Answer
verified

A personal balance sheet presents:

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

Correct Answer
verified

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

Correct Answer
verified

Warranties are commonly associated with ____________ purchases.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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Which of the following would be considered a fixed expense?

Correct Answer
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Correct Answer
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Changes in the cost of living are:

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

Correct Answer
verified

Exam 3: Money Management Strategy: Financial Statements and Budgeting

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

Correct AnswerverifiedShow Answer

About what percent of Americans have no emergency fund?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A personal balance sheet presents:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Warranties are commonly associated with ____________ purchases.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would be considered a fixed expense?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Changes in the cost of living are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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