Exam 2: Money Management Skills

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

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A) The balance on the mortgage = 50% of the value of the home.
B) For every dollar of net worth, debt equals $0.50.
C) For every dollar of debt, net worth equals $0.50.
D) For every dollar of take-home pay, monthly credit payments equal $0.50.
E) For every dollar of assets, monthly credit payments equal $0.50.

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A) A warranty belongs in a safe deposit box.
B) A birth certificate should be kept in a personal computer system.
C) Tax records belong in a home file.
D) A plan for effective budgeting belongs in your safe deposit box.
E) Adoption papers belong in a home file.

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

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A) Report your current financial position.
B) Measure your progress toward financial goals.
C) Maintain information about your financial activities.
D) Provide data for preparing tax forms or applying for credit.
E) These are all correct.

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A) Mail rent check
B) Buy groceries
C) Make a loan payment
D) Receive a paycheck
E) Pay medical expenses

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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.

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A) Savings/money market accounts
B) Cash value of life insurance
C) Checking account balance
D) Coins in a jar at home
E) Retirement investments

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

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

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E

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

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Assets are listed at...

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A) No need to keep it since your lawyer probably has a photocopy.
B) One year.
C) Three years.
D) Seven years.
E) Permanently.

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A) Interest
B) Commissions
C) Dividends
D) Salary
E) Social Security taxes

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11ea6ea1_4fd5_24a1_8f54_bd0766de1a75_TB2409_00 $34,850 Feedback: Assets - Liabilities = Net worth. (Automobile + Cash + Cash value of life insurance + Mutual fund + Home + Market value of TV)less (Auto loan + Credit card balance + Mortgage). ($12,000 + 1,100 + 2,000 + 5,500 + 175,000 + 500)- (10,000 + 1,250 + 150,000)= 196,100 - 161,250 = $34,850.