Personal Finance Quiz 1

How do you calculate your Net Worth?

• Spending all your income

• A savings account

• Liabilities - Investments = Net Worth

• Assets - Liabilities = Net Worth

Another name for net worth would be:

• wealth

• market value

• home equity

• car loan

What is NOT considered a wealth-creating asset?

• a savings account

• a retirement plan

• stocks and bonds

• an apartment

Which of the items below is NOT considered a liability?

• a car loan

• a house

• hospital and medical bills

• student loans

Building wealth is not accomplished overnight and often takes:

• being unrealistic

• not planning, winging it

• a budget and setting financial goals

• making contributions to daily expenses

Owning a part of a company is also known as:

• bonds

• stocks

• treasury bills

• mutual funds

A number that predicts the likelihood you will repay [your debt] on time is:

• finance number

• interest rate

• secured credit card

• credit score

If you want to control debt, you can:

(select multiple answers if necessary)

• cut up old credit cards

• shop for the best interest rates for credit cards

• develop a strategy, including making lists with details for each accout

• hope for the best

Owning a home includes all of the following:

• risks

• responsibilities

• signing a lease application

• building equity

Who are the three people/groups available to help you buy a house?

• bank, contract institution, your financial advisor

• lender, agent/realtor, title company

• down payment, mortgage, equity

• resale home representative