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| 1 | |
Money management troubles can be reduced or eliminated by doing each of the following EXCEPT: |
| | A) | Find other income sources such as a second job. |
| | B) | Track your spending. |
| | C) | Transfer credit card debt from one card to another. |
| | D) | Make payments on time. |
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| 2 | |
Having an organized system for personal financial records allows you to: |
| | A) | Plan and measure financial progress. |
| | B) | Fill out tax forms. |
| | C) | Determine available resources for current spending. |
| | D) | All of the above. |
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| 3 | |
What is the difference between a Personal Balance Sheet and a Cash Flow Statement? |
| | A) | A cash flow statement summarizes your income and payments for a given time period while your balance sheet lists what you own and what you owe. |
| | B) | A balance sheet summarizes your income and payments for a given time period while your cash flow statement lists what you own and what you owe. |
| | C) | There is no difference between the two, they are two ways of organizing the same information. |
| | D) | A balance sheet lists your income and liabilities, while a cash flow statement shows what you own and the payments you make on what you own. |
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| 4 | |
Here is some financial information for the Jones family.
Category | Amount | Market value of cars | $16,000.00 | Medical bills | $412.56 | Utilities | $316.27 | Savings account | $5,678.32 | Jewelry | $4,000.00 | Salary (take home pay) | $4,333.33 | Credit card balances | $7,682.00 | Auto loan balances | $14,348.00 | Checking account | $1,268.35 | Food at home | $435.76 | Interest on savings | $70.98 | Medical payments | $100.00 | Furniture and appliances | $3,200.00 | Retirement savings | $218,976.45 | Mortgage payment | $1,547.78 | Insurance payments | $116.67 | Mortgage balance | $125,078.98 | Credit card payments | $800.00 | Entertainment/eating out | $432.67 | Market value of home | $275,000.00 | Car payments | $726.00 |
Using information in the above table, calculate the Net Worth for the Jones family. |
| | A) | $376,294.89 |
| | B) | $376,601.58 |
| | C) | $524,123.12 |
| | D) | $147,521.54 |
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| 5 | |
Here is some financial information for the Jones family.
Category | Amount | Market value of cars | $16,000.00 | Medical bills | $412.56 | Utilities | $316.27 | Savings account | $5,678.32 | Jewelry | $4,000.00 | Salary (take home pay) | $4,333.33 | Credit card balances | $7,682.00 | Auto loan balances | $14,348.00 | Checking account | $1,268.35 | Food at home | $435.76 | Interest on savings | $70.98 | Medical payments | $100.00 | Furniture and appliances | $3,200.00 | Retirement savings | $218,976.45 | Mortgage payment | $1,547.78 | Insurance payments | $116.67 | Mortgage balance | $125,078.98 | Credit card payments | $800.00 | Entertainment/eating out | $432.67 | Market value of home | $275,000.00 | Car payments | $726.00 |
Using the information in the above table, calculate the amount the Jones family has as cash surplus or deficit. |
| | A) | $4,404.31 surplus |
| | B) | $4,475.15 deficit |
| | C) | $70.84 surplus |
| | D) | $70.84 deficit |
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| 6 | |
What does it mean to "pay yourself first"? |
| | A) | To forego paying bills and have fun with the money. |
| | B) | To put money in savings instead of paying bills. |
| | C) | To include a savings category in your budget to ensure that you set aside some money for savings. |
| | D) | To make sure you spend the amount that is left after you pay your bills. |
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| 7 | |
Budgeted amounts are: |
| | A) | The estimated amount you think you might need for a given expense. |
| | B) | The actual amount you spend on the expense. |
| | C) | The difference between what you estimated and what you spent. |
| | D) | Amounts suggested by friends for spending |
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| 8 | |
A completed budget needs to be: |
| | A) | Put in a secured place and never looked at again. |
| | B) | Reviewed and revised periodically throughout the year. |
| | C) | Established for an entire year. |
| | D) | Followed exactly to achieve set financial goals. |
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| 9 | |
What is the consequence of having a negative cash flow? |
| | A) | Your balance sheet becomes unbalanced. |
| | B) | Your budget should be thrown out. |
| | C) | Your net worth is lower. |
| | D) | Your net worth is higher. |
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| 10 | |
Which of the following statements is true? |
| | A) | Most people are able to save huge sums of money. |
| | B) | It takes a lot of self discipline to be able to save money each month. |
| | C) | Since it is unlikely that most people will have an emergency, it is not important to save money. |
| | D) | Even a small amount saved each month will help reach financial goals. |
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