Net Worth
Spending Plan
Investing in yourself
Saving
Investing
100
net worth has two components, assets and liabilities, what are these?
What is an asset is everything a person owns with monetary value and liability is a debt or obligation owed to others
100
Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step?
What is Track his current income and expenses. If he has already created an Income and Expense Statement then he has completed this step.
100
Miranda is working to develop a broad base of transferable skills. This means that she
What is Will have a set a versatile skill that she can apply to many personal and professional roles.
100
Define liquidity
What is how quickly and easily an asset can be converted into cash
100
What is inflation?
What is The rise in the general level of prices
200
what is net worth
What is The measure of financial wealth
200
If expenses were to exceed income on a spending plan, what would be a financially smart solution?
What is Decrease expenses
200
Individuals with more formal educational training usually have
What is higher estimated lifetime earnings
200
When taking advantage of the time value of money, what is most likely to result in the largest return
What is Invest as long as possible and at the highest interest rate possible.
200
The most common relationship between risk and return in investing can be stated as:
What is higher risk indicates higher return
300
Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered that they have a net gain. What does this mean and what should they do?
What is Amanda and March are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses.
300
When is your spending plan complete?
What is Spending plans are always under revision so they are never complete.
300
44. Jose has been challenged by his academic advisor to 'develop some human capital' this school year. Which activity below would be the LEAST effective way to reach that goal? A. Spend additional time playing video games to further develop his eye-hand coordination. B. Volunteer to pick up trash along the roadsides. C. Attend a workshop on a topic he has little knowledge of. D. Ask his employer if there are any new tasks at work that he might be assigned.
What is A. Spend additional time playing video games to further develop his eye-hand coordination.
300
Compound interest is best defined as:
What is Earning interest on interest
300
Which of the following statements is true in regards to paying taxes on investments? A. Since investments are considered unearned income, taxes do not have to be paid on earnings. B. Taxes are often owed on profits generated from investments. C. Taxes only have to be paid on employer-sponsored investment accounts. D. Taxes are always paid on investments either when the money is placed in the investment or removed from the investment.
What is B. Taxes are often owed on profits generated from investments.
400
Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier?
What is Maggie, because her net worth is higher than Samantha's.
400
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit that category? A. Cell phone bill, gasoline, and car payment B. Internet bill, entertainment, and clothing C. motorcycle payment, food, and cell phone bill D. Gasoline, food, and entertainment
What is D. Gasoline, food, and entertainment
400
Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her:
What is human capital
400
Hannah needs a savings tool to help her manage her everyday purchases. The savings tool needs to be very liquid and accessible. Which of the following savings tools should Hannah choose? a. Certificate of deposit b. Checking account c. Money market deposit account
What is b checking account
400
Which statement is TRUE of mutual funds? a. Mutual Funds are speculative investments b. Mutual Funds are diversified investments c. Mutual Funds are a form of real estate investment d. Mutual funds are superior purchasing to a single stock
What is b.Mutual Funds are diversified investments
500
To calculate her net worth Jordyn should use the following formula:
What is Assets – liabilities = net worth
500
39. Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which of the following statements is NOT TRUE about spending plans? A. Spending plans are used to record planned income. B. Spending plans are used to record planned expenses. C. A spending plan includes items NOT usually included when creating a budget. D. When creating a pending plan, it is recommended that you examine your trade-offs and opportunity costs.
What is C. A spending plan includes items NOT usually included when creating a budget.
500
Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice? A. Completing your college degree is the best way to prepare for a career. B. Education pays in higher earnings and lower unemployment rates. C. Human capital and transferable skills result from formal training. D. Investing in yourself too early can lead to a lower standard of living.
What is B. Education pays in higher earnings and lower unemployment rates.
500
what is the philosophy of "pay yourself first"?
What is An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
500
what is a bond?
What is A type of debt that a company issues to investors for a specified period of time.
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