PFL FINAL

• True

• False

Money Management refers to:

• Trade-offs that occur with financial decisions

• Day-to-Day financial activities

• Storing financial records for easy access

• Spending money on current living expenses

How long should you keep your current will?

• Three Years

• Seven Years

• Until you find a lawyer

• Permanently

Current liabilities are the debts you must pay within a short amount of time, usually less than a year.

• True

• False

When creating a personal balance sheet, which of the following is an investment asset?

• Personal possessions

• Retirement accounts

• Vacation property

• Checking account

The amount you would have left if all assets were sold and all debts were paid in full is called:

• Net assets

• Total income

• Net worth

• Total liabilities

The inability to pay debts when they are due because liabilities far exceed the value of assets is called:

• Liabilities

• Cash Flow

• Insolvency

• Net Worth

Which of the following is a deduction to determine take-home pay?

• Interest Earned on Savings

• Social Security Taxes

• Commissions

• Dividends

Take-Home Pay is also called:

• Discretionary Income

• Deductions

• Monthly Savings

• Net Pay

Which of the following is not a fixed expense?

• Installment loan payment

• Mortgage

• Utility bill

• Monthly allocated for life insurance