Banking and Finance - Chapter 3

The price at which property would sell

The first step in planning a budget is

An example of a liquid asset is a

An example of a current liability is

The difference between the amount you own and the debts that you owe

Extra money that can be spent or saved, depending on a person’s financial goals and values

The debts you owe

Your net worth goes up when you

A cash flow statement gives you important feedback on your

The financial situation that occurs when more money is spent than is earned or received

A small, secure storage compartment that you can rent in a bank

A disadvantage of using a safe-deposit box for keeping financial documents is that it

A savings option many employers offer is

Planning how to get the most from your money

One use of discretionary funds is spending on

Provides info about an individual’s current financial position and a summary of income/spending

A good budget has all the following characteristics EXCEPT

The money left after paying for the essentials, such as food, clothing, shelter, and medication

An example of a variable expense is

Cash and items that can be quickly converted to cash