Fin Lit Unit (Ch 16 & 17)

Which of the following would be a personal asset?

• your car payment

• your personal computer

• your home mortgage

• your college loan

Your net worth is

• what you have left over in your paycheck each week after deductions are taken out.

• the total amount of all of your investments.

• the total value of your personal assets.

• the difference between your personal assets and your liabilities.

When you make a loan payment, your

• liabilities decrease.

• net income increases.

• cash outflows decrease.

• net worth is unaffected.

Take-home pay is

• the amount of a paycheck before taxes and other payroll deductions.

• the money you have available to spend as a result of working plus any other income, such as a gift or stock dividend.

• the amount you will receive when you cash your paycheck.

• cash inflows minus cash outflows.

If you have a budget, you should

• learn how to plan for financial emergencies.

• never buy anything on credit.

• be able to buy anything you want.

• all of these options

Which of the following correctly shows the budgeting process?

• set financial goals; maintain financial records; plan budget categories; evaluate your budget

• plan budget categories; set financial goals; maintain financial records; evaluate your budget

• set financial goals; plan budget categories; maintain financial records; evaluate your budget

• maintain financial records; plan budget categories; evaluate your budget; set financial goals

Which of the following would probably be a short-term financial goal?

• going on a three-week cruise

• buying a new luxury automobile

• going to college

• purchasing a new game/album

Which of the following is a variable expense?

• groceries

• rent

• mortgage payment

• insurance premium

The United States is divided into ___ Federal Reserve districts, with a central Federal Reserve bank in each district.

• 4

• 12

• 24

• 50

A user-owned, not-for-profit, cooperative financial institution is called a

• credit union

• mutual savings bank

• savings and loan association

• commercial bank