Personal Finance Final Review Part 1

Personal Finance can be defined as knowing how to manage your money.

• True

• False

Creating a budget ensures you will not overspend?

• True

• False

A mortgage is a loan that is used to secure financing for the purchase of a house. 

• True

• False

Variable expenses may differ in amount every period?

• True

• False

The document that gives a person's credit history and current credit status is called a credit score.

• True

• False

The first thing you should save for is your retirement fund.

• True

• False

Murphy's Law states anything that can go wrong, will go wrong. 

• True

• False

Short term disability can cover up to five years of pay if you've been hurt. 

• True

• False

In personal finance, liquidity means how valuable an asset is (the higher the liquidity, the greater the value). 

• True

• False

A person's age can affect their credit score.

• True

• False