Unit 2 Test

A personal net worth statement shows a person’s cash inflows and cash outflows for a period of time.

• True

• False

The first step of the decision-making process is

• Make a decision

• Define the need

• Compare Options

• Reevaluate your choice

A goal you expect to achieve by next year would be classified as a short-term goal.

• True

• False

The amount of money a person has to spend after needs are met is called

• net cash flow

• net worth

• bitcoin

• disposable income

Your NET WORTH is measured by using the personal cash flow statement.

• True

• False

Financial goals should be set before personal goals, because your personal goals will be dependent on them.

• True

• False

What should you do if your budget does not balance?

• adjust savings

• lower expenses

• increase income

• any of these

• Only Adjust savings and lower expenses

Goals you wish to achieve in the next two to five years are

• temporary goals

• medium-term (intermediate) goals

• short-term goals

• long-term goals

Which of the following would not be included in a person’s listing of ASSETS?

• $13,000 car loan

• $5,000 dinette set

• $300 cash on hand

• $1,000 in savings account

With every buying decision, there is a tradeoff and an opportunity cost.

• True

• False