2020-2021 Semester Exam Review -Money Management & Banking

How is personal net worth calculated?

• Subtracting total liabilities from total assets

• Subtracting total assets from total liabilities

• Totaling the purchase prices of all items a person owns

• Adding total assets and total liabilities

What is the purpose of goal setting in the financial planning process?

• To provide direction for planning and action

• To clarify goal ranges

• To differentiate between needs and wants

• To facilitate decision making

What are lunches, medical bills, personal care items, and clothing all examples of?

• Income

• Fixed expenses

• Investments

• Variable expenses

What are a house payment and insurance examples of?

• Income

• Fixed expenses

• Variable expenses

• Investments

To set up a budget but unsure of how much to put in the income section. What will help you estimate your income

• W-4 form from the previous year

• W-2 statement from the previous year

• Pay stubs from the past year

• Pay stub from the previous pay period

Which of the following could NOT be called income?

• Interest paid on a loan

• Allowance

• Paycheck

• Interest received from a savings account

In your personal filing system, you should keep all of the following EXCEPT

• Net worth statements

• Medical receipts for the past 10 years

• Income and expense records

• A personal property inventory

Which of the following is an example of collectibles which add to net worth

• Collection of seashells

• Stuffed animals from childhood

• Stamp collection

• 'Chronicles of Narnia' DVDs

What agency performs central banking functions in the United States?

• Department of Treasury

• Federal Reserve

• Congress

• Bank of the United States

What is an ATM used for?

• Apply for a loan

• Make an electronic payment

• Receive bank statement

• Withdraw money