Personal Finance - Unit 2 EOC Review

How do you calculate net worth?

• Assets + Liabilities

• Assets - Liabilities

• Assets + Liabilities - Expenses

• It doesn't matter

Which is NOT a helpful budgeting tip?

• Budget to zero

• Budget based off gross income, not net income

• Track every expense

• Make adjustments

What is the measure of the money you receive and the money you spend?

• Cash flow

• Investments

• Financial planning

• Values

What is a major difference between commercial banks and credit unions?

• Commercial banks serve businesses, while credit unions serve individuals

• Commercial operate to earn profit, credit unions are nonprofit

• Commercial have small local branches, credit unions are nationwide

• Commercial manage person's money, credit unions focus on loans

What two items do you need to reconcile your checking account?

• Check register and monthly bank statement

• Credit card statement and monthly bank statement

• Check register and credit card statement

• Check register and voided checks

What would be a good time to spend money from your Emergency Fund?

• You lose your job but still have bills to pay

• Your friend tells you that you should buy as much Bitcoin as possible

• Your favorite artist releases a new album and you just have to buy it

• Your friends are going on an expensive trip and you would like to go

If you used the 50-30-20 rule of budgeting, how much money would you be saving?

• 20%

• 30%

• 50%

• 100%

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining out at local restaurants

• Expenses for new clothes

• Loan payment on a new car

• Postponing purchase of a big-screen TV

Mortgage or rent should be approximately what percent of your budget?

• 5%

• 30%

• 50%

• 75%

Which of the following is an example of an asset?

• Car loan

• House

• Mortgage

• Student loan