Financial Literacy Test

Front

What are Liabilities?

Back

Debts or money you owe that you are responsible for paying back.

Front

Can you have negative Net Worth?

Back

True, it is possible to have negative Net Worth.

Front

What are Debts owed by an individual called?

Back

Liabilities.

Front

How do you calculate Net Worth?

Back

Net Worth = Total Assets - Total Liabilities.

Front

What is an Asset?

Back

Anything of value or a resource owned by an individual or entity.

Front

What is the formula for Simple Interest?

Back

Simple Interest = Principal x Rate x Time.

Front

If Tina invested $2,000 at an 8% interest rate for 5 years, how much interest did she earn?

Back

$800.

Front

What is a Fixed Expense?

Back

A cost that does not change from month to month, such as rent.

Front

What is Net Worth?

Back

The difference between what you own (assets) and what you owe (liabilities).

Front

What is the difference between Assets and Liabilities?

Back

Assets are what you own, while Liabilities are what you owe.