Chapter 8 Personal Finance

A financial plan is a set of goals for spending, saving, and investing money.

• True

• False

Warranties may be in writing or may be assumed to exist.

• True

• False

Enforceable contracts must have a valid offer and acceptance.

• True

• False

A negotiable instrument is a written promise to pay money upon demand of the

holder.

• True

• False

Consideration in a legally binding agreement means that both parties are 18 or

older

• True

• False

It is your responsibility as a consumer to keep a copy of each agreement you sign

in a safe place for future reference.

• True

• False

A contract with an illegal purpose is not enforceable.

• True

• False

A notarized document has a seal that indicates the person signed the document of

his or her own free will.

• True

• False

You can use a spreadsheet program to maintain a list of your income and expenses.

• True

• False

The person who creates and signs a promissory note is called the maker.

• True

• False