Financial Literacy Unit 2 Review

What is the measure of your financial health called?

• Net Worth Statement

• Amount of credit cards you own

• Size of your paycheck

• Social Media Influence

A _______ records your "cashflow" and ultimately either a cast surplus or a cash deficit.

• Budget

• Net Worth Statement

• Paycheck Stub

• Income and Expense Statement

If you want to buy a vehicle and take $2,000 from your savings account and purchase a $10,000 used vehicle (financing the difference), how will your assets on net worth statement change?

• Decrease by $2,000

• No Change

• Increase by $8,000

• Increase by $10,000

If your net worth is $25,000 and you pay off your student loan from your savings account, how will your net worth statement be impacted?

• Your assets and liabilities will both go down. This will not change your net worth.

• Your assets and liabilities will both go down. This will increase your net worth.

• Your assets will go up and your liabilities will go down. Your net worth will increase.

• Your assets, liabilities, and overall net worth will NOT change.

The consumer debt ratio is solved by taking _________ and should be under 20%.

• Monthly debts owed divided by net income

• Monthly debts owed divided by gross income

• Total monthly loan payments divided by cash surplus

• Total liabilities divided by liquid cash assets.

Your net worth statement measure your ______ based on ________.

• Assets and liabilities, a range of time.

• Past cash flow, a range of time

• Assets and liabilities, a specific point in time (date)

• Past cash flow, a specific point in time (date)

What is an example of a personal asset?

• Checking Account

• House

• Stocks

• Jewelry

Assets on the net worth statement are listed at their

• Purchased Value

• Anticipated Value

• Fair Market Value

• Reportable Value

If you have sufficient assets to pay down all of your debts you are said to be SOLVENT.

• True

• False

An income and expense statement would do which of the following?

• Track inflows and outflows at a specific point in time (date)

• Track inflows and outflows over a period of time.

• Track assets and liabilities at a specific point in time (date)

• Track assets and liabilities over a past period of time.