FTL Chapter 3

Question 1

What measures the changes in prices for commercially purchased goods and services?

Accepted Answer

consumer price index

Question 2

Which of these is not a liability?

Accepted Answer

telephone bill

Question 3

Which of the following is a disadvantage to using a safe-deposit box?

Accepted Answer

cost up to $100 a year

Question 4

Another name for extra money that can be spent or saved.

Accepted Answer

surplus

Question 5

Which of the following is an example of a liquid asset?

Accepted Answer

money in a bank account

Question 6

Which situation would improve your net worth?

Accepted Answer

paying off debt

Question 7

What is the difference between the amount you own and the debts you owe?

Accepted Answer

net worth

Question 8

What is the money left over after all the essentials are paid for?

Accepted Answer

discretionary income

Question 9

Which of these is an example of a current liability?

Accepted Answer

taxes

Question 10

Which step comes first when setting a budget?

Accepted Answer

setting financial goals

Question 11

Which of the following is not deducted in order to get take-home pay?

Accepted Answer

personal savings

Question 12

You are in a _________ if you spend more money than you earn.

Accepted Answer

deficit

Question 13

Which of the following is not an example of a variable expense?

Accepted Answer

car payment

Question 14

What is another name for the debts that you owe?

Accepted Answer

liabilities

Question 15

What is the price at which a property can be sold?

Accepted Answer

market value

Question 16

This is the method of planning how to get the most from your money.

Accepted Answer

money management

Question 17

How is cash flow calculated?

Accepted Answer

income - expenses

Question 18

What feedback is given by a cash flow statement?

Accepted Answer

income and spending patterns

Question 19

Which of the following is not a personal financial document?

Accepted Answer

birth certificate

Question 20

In which situation would insolvency occur?

Accepted Answer

liabilities greater than assets

Questions 20