Financial Math Post Test Sem 1

Front

What is a long-term liability?

Back

A long-term liability is a financial obligation that is due for payment in more than one year, such as a mortgage or a house payment.

Front

What are stocks?

Back

Stocks are shares of ownership in a company, representing a claim on the company's assets and earnings.

Front

How can one increase savings?

Back

One can increase savings by increasing cash inflow, which means earning more money or reducing expenses.

Front

What is an example of a long-term financial goal?

Back

Buying a home is an example of a long-term financial goal.

Front

What category of goods do consumers tend to spend the most on?

Back

Consumers tend to spend the most on housing.

Front

What is the difference between assets and liabilities?

Back

Assets are resources owned by an individual or company that have economic value, while liabilities are obligations that require future payment.

Front

What is a budget?

Back

A budget is a financial plan that outlines expected income and expenses over a specific period.

Front

What is the purpose of an emergency fund?

Back

An emergency fund is savings set aside to cover unexpected expenses or financial emergencies.

Front

What is the significance of credit scores?

Back

Credit scores are numerical representations of a person's creditworthiness, affecting their ability to borrow money and the interest rates they receive.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant each month (e.g., rent), while variable expenses can fluctuate (e.g., groceries).