Personal Finance Ch 3

Jamie McFarland has determined that the value of her liquid assets is $4,900, the value of her real estate is $116,500, the value of her personal possessions is $62,500 and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,550 and the value of her long term liabilities is $109,000. What is Jamie's net worth?

$140,350

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1200. 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 $3300. She has a car worth $12,500. She has also purchased some stock worth $5500 and she has a retirement account worth $38,550. What is the total value of her assets?

$171,900

Assets $ _____; liabilities $38,755; net worth $52,450

$91,205

Warranties are commonly associated with ____________ purchases.

Consumer.

Ben Chase needs to pay off some of his debts over the next few months. Which item on his balance sheet would help him decide what amounts are due in the near future?

Current liabilities

Sean Carter needs to store monthly statements from his bank, his credit card company and from his savings and loan. Where is the most likely place that Sean will store this information?

His home file cabinet

A common deduction from a person's paycheck is for:

Taxes.

"Pay yourself first" is an attitude that can assure building savings for the future.

True.

A person's lifestyle is a reflection of his or her values, goals, career, and family situation.

True.

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

True.

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

actual expenses are greater than planned expenses.

The current financial position of an individual or family is best presented with the use of a(n):

balance sheet.

Payments that do not vary from month to month are ____________ expenses.

fixed.

An example of a long-term goal for a young couple may be:

income for retirement.

Opportunity costs refers to:

trade-offs associated with financial decisions.