Personal Financial Stewardship Quiz 1

false

a budget is a record of how a person or family has spent their money

physical budget

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

track spending and identify variances

after the budget is created, it is important to

mortgage

an example of a fixed expense is

electric bill

an example of a variable expense is

$63

annual earning on a $2,000 Certificate of Deposit earning 3.15% would be

true

financial advisers suggest that an emergency fund should cover three to six months of living expenses

$10,900

if a $10,000 investment earns a 9% annual return, what should its value be after one year

true

inflation reduces the buying power of money

liquid assets= $11,000 real estate= $139,000 personal property= $8,000 investments= $75,000 current liabilities= $1,500 long-term liabilities= $98,000

net worth= $233,000 - 99,500 = $133,500

true

opportunity costs refer to time, money, and other resources that are given up when a decision is made

$323,00

patrick guitman has a net worth of $156,000 and liabilities of $167,000. what are his total assets

b. net worth

the amount you would have if everything of value would be sold and all debts would be paid in full

c. the change in prices of products and services of urban consumers

the consumer price index reflects

seven years

the number of personal financial records a household has to organize may seem overwhelming. How long should you keep copies of your tax return?

b. inflation

the rising of prices that causes changes in buying power is referred to as _________ risk

e. risk.

the uncertainty associated w/ decision making is referred to as

true

when prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years

c. borrowers

who is most likely to benefit from inflation?

CHAPTER 2

CHAPTER 2

c.more

because of interest that can be earned, if i can invest a dollar today, it should be worth ________ in the future