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WorksheetsPersonal Finance Chapter 8 Review
Total questions: 37
Worksheet time: 19mins
A warranty that is assumed to exist.
Implied
Contract
Express
Legally collectible
The meaning of the term: negotiable instrument
Legally collectible
Implied
Contract
Counteroffer
One who agrees to pay a note if the maker does not pay.
Co-signer
Mutual assent
Maker
Payee
The person who creates and signs a note.
Maker
Co-signer
Payee
Competent parties
The person to whom a note is made payable.
Payee
Co-signer
Maker
Competent parties
A written promise to pay on a specified date.
Promissory note
Contract
Implied
Express
A person is ________________ if he or she can pay all bills as they are due.
Solvent
Payee
Express
Competent
A contract that is in words (oral or written).
Express
Contract
Solvent
Mutual assent
A new offer based on rejection of part or all of the original offer.
Counteroffer
Instruments
Inventory
Implied
People who are legally able to give sane and intelligent consent and enter into contracts.
Competent parties
Payee
Co-signer
Maker
A program for spending, saving and investing.
Financial planning
A budget
Disposable income
A net worth statement
A budget:
is a plan to match expected income with expected outflow
is a plan to match spending with saving
is a plan to increase income
will decrease your wants and needs
Savings, house payments, and utilities are examples of:
Fixed expenses
Variable expenses
Personal records
Disposable income
Families don't need to keep:
Medical receipts for the past 10 years
Income and expense reports
Net worth statements
A personal property inventory
Things of value that you own are called ______________ on your net worth statement.
Assets
Liabilities
Disposable income
Collateral
Debts that you owe to others are called:
Liabilities
Assets
Disposable income
Collateral
What is the most common use of a net worth statement?
As proof in the event of fire or theft
in the event of a tax audit
when applying for credit
in preparing budgets
What is the most common use of a personal property inventory?
As proof of loss in the event of a fire or theft
In the event of a tax audit
When applying for credit
In preparing a budget
A(n) ___________________ is NOT required for an enforceable agreement.
Notarization
Mutual assent
Consideration
Legal purpose
A mortgage or lease is an example of a(n):
Implied contract
Express contract
Oral contract
Warranty or guarantee
Can warranties be in writing AND assumed to exist?
Yes
No
Enforceable contracts must have a valid offer and ______________.
acceptance
denial
a handshake
a signature
A(n) ____________________________ is a written promise to pay money upon demand of the holder.
negotiable instrument
consideration
warranty
notarized document
A(n) ____________________ is anything of value exchanged as part of a contract (such as an object of value, money, a promise, or a performed service).
consideration
negotiable instrument
asset
liability
Is it your responsibility to keep a copy of each agreement you sign in a safe place?
Yes
No
Can a contract with an illegal purpose be enforced?
Yes
No
A(n) ______________________ has a seal that means the person signed the document under their own free will.
notarized document
enforceable contract
promissory note
warranty
Who creates and signs a promissory note?
Maker
Payee
Lawyer
Employee
Is it a good idea to take pictures of your valuables?
Yes
No
To be solvent means that:
your assets are greater than your liabilities
your liabilities are greater than your assets
________________ can be used as evidence that you paid for something.
Receipts
Contracts
Negotiations
Warranties
Keeping good personal records will help your _________________________.
financial planning
investments
assets
liabilities
____________ expenses change according to your needs and short-term goals.
Variable
Fixed
Implied
Expressed
An example of a variable expense is:
entertainment
rent
mortgage
car loans
No more than _____________ % of take-home pay should be for fixed expenses.
50-60
40-50
60-70
70-80
A plan where your expected income is matched to your expected outflow is called a:
budget
net worth statement
disposable income
personal property inventory
_____________________ is the money you have to spend or save after taxes have been taken out.
Disposable income
Spending income
Assets
Indisposable income
