Algebra With Finance MidTerm Exam

Front

What is a fully funded emergency fund for your age?

Back

$500

Front

What are the consequences of spending more than you make?

Back

Stress, Missed opportunity to save and invest, A cycle of debt, All of these

Front

What is the total wealth of a person/family considering all assets and liabilities?

Back

Net Worth

Front

Is debt fun because I can buy whatever I want?

Back

Myth

Front

Do you need to have a credit card?

Back

Myth

Front

What is the purpose of an emergency fund?

Back

To cover unexpected expenses without going into debt.

Front

What is the difference between assets and liabilities?

Back

Assets are what you own; liabilities are what you owe.

Front

What is the formula for calculating net worth?

Back

Net Worth = Total Assets - Total Liabilities

Front

What is the impact of high-interest debt on financial health?

Back

It can lead to financial stress and limit savings and investment opportunities.

Front

What is a budget?

Back

A plan for managing income and expenses.