1. Which of the following is a component of money management? All of these choic
ID: 2816873 • Letter: 1
Question
1.
Which of the following is a component of money management?
All of these choices are components of money management.
2.
Last year your salary was $32,000. This year it increased to $35,000. What is the percentage increase in your salary from last year to this year?
33.5%
3.
The things you own, such as cash or a car, are referred to as
Net worth
4.
The document that would tell you what you received and spent over the past month is the
Bank statement
5.
Which of the following is NOT a main purpose of a budget? There are multiple answers; choose all that are correct.
Develop wise financial management habits
6.
A budget deficit would result when a person's or family's
actual spending exceeds planned spending.
7.
Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards, auto loans, and other debt (except mortgage)?
Current ratio
8.
After having established a spending plan, it is important to
None of these are true since budgets are just estimates.
9.
Financial experts recommend a debt/payments ratio of less than ____ of take-home pay.
25-35%
10.
Which of the following ratios indicates the number of months that living expenses can be paid using current assets if an emergency arises?
Savings ratio
11.
An example of a variable expense is a(n)
Monthly utility bill.
12.
The equation to calculate net worth is
Cash inflows minus Cash outflows = Net worth.
13.
The debt payment ratio shows the percentage of after-tax income that is required to make the minimum debt payments of all types of debts.
False
14.
When creating a personal balance sheet, which of the following is a current liability?
Credit card balance due this month
15.
The savings ratio will be negative if cash outflows exceed cash inflows.
Storing and maintaining personal financial records and documents.Explanation / Answer
1)
Money management includes all types of activities which includes management, Planning and implementation of money management ideas. It includes storing and recording all financial records. Preparing financial statements and etc.
Hence, correct option is All of these choices are components of money management.
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