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Questions and Answers
What is the formula for calculating net worth?
What is the formula for calculating net worth?
- Liabilities - Assets
- Assets x Liabilities
- Assets + Liabilities
- Assets - Liabilities (correct)
Which of the following best defines the 'Rule of 72' in finance?
Which of the following best defines the 'Rule of 72' in finance?
- An equation to estimate the time to triple an investment at a fixed annual interest rate
- An equation to estimate the time to quadruple an investment at a fixed annual interest rate
- An equation to estimate the time to halve an investment at a fixed annual interest rate
- An equation to estimate the time to double an investment at a fixed annual interest rate (correct)
What is the primary purpose of investing?
What is the primary purpose of investing?
- Generating income through employment
- Purchasing items with the hope of increasing their value over time (correct)
- Purchasing items for immediate use
- Saving money in a bank account
How is 'gross pay' calculated?
How is 'gross pay' calculated?
What do voluntary deductions from paychecks typically include?
What do voluntary deductions from paychecks typically include?
What is the percentage taken out of one's check for FICA tax?
What is the percentage taken out of one's check for FICA tax?
What is an example of a fixed expense?
What is an example of a fixed expense?
What is the overtime rate if a person makes $10.00 per hour and works overtime?
What is the overtime rate if a person makes $10.00 per hour and works overtime?
What does it mean to 'pay yourself first'?
What does it mean to 'pay yourself first'?
What should a person keep in a liquid account according to the text?
What should a person keep in a liquid account according to the text?
What is an example of a CD (Certificate of Deposit) con as per the text?
What is an example of a CD (Certificate of Deposit) con as per the text?
What does it mean if a check is 'outstanding'?
What does it mean if a check is 'outstanding'?
What do lenders/creditors look for when examining 'character'?
What do lenders/creditors look for when examining 'character'?
What are the three credit bureaus responsible for maintaining credit history?
What are the three credit bureaus responsible for maintaining credit history?
What does 'cosigner' mean in the context of borrowing?
What does 'cosigner' mean in the context of borrowing?
What is the highest possible credit score according to the text?
What is the highest possible credit score according to the text?
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