finance01 previous quiz question

Question Answer
True/FalseThe nominal return is the return on an investment after the impact of inflation and taxes is taken into account. False
According a statement attributed to Albert Einstein, what is the eighth wonder of the world? Compound Interest
In Time Value of Money calculations, PV stands for Present Value
In Time Value of Money calculations, FV stands for Future Value
Lump-sum problems never utilize which function on the financial calculator? PMT
True/False The formula for net worth is the total value of your assets minus the total value of your liabilities. True
On a net worth statement, assets such as clothing, automobiles, furniture, and electronics should be valued at Current Market Value
On a net worth statement, what part of a credit card balance should be included under liabilities? The current outstanding balance
True/False Budgeting is the process of planning, in advance, how to spend money. True
True/FalseAn income and expense statement does not take into account income and expenses that are in the past. It is solely designed to predict what your income and expenses will be in the future to help you budget your money for the coming year. False
True/FalseA student loan has an offsetting asset that can be shown on a balance sheet. False
True/FalseRecord keeping only pertains to financial records. False
All of these records should be kept for at least seven years excepta. income tax returns.b. medical reciepts.c. access to bank statements.d. contributions reciepts.e. All of these documents should be kept for at least seven years. All of these documents should be kept for at least seven years.
All of these are variable expenses excepta. clothing.b. house payment (principal and interest).c. entertainment.d. food.e. All of these are expenses are variable expenses. house Payment
True/FalseRent is considered a liability when calculating one’s net worth. False
According to the acronym HALT, you should avoid making financial decisions when you area. Hurried, Angry, Lonely, or Tired.b. Hungry, Agitated, Lonely, or Tense.c. Hungry, Angry, Lonely, or Tired.d. Hurt, Annoyed, Lonely, or Tense. Hungry Angry Lonely or Tired
In order to budget the better way, you shoulda. contribute to savings only after you have paid all of other expenses each month.b. pay yourself first, and then pay the Lord.c. pay the Lord first, and then pay yourself.d. do none of these. c. pay the Lord first, and then pay yourself.
What is "mad money?"a.Money that puts a family “over the edge” in their finances. "Mad" stands for Mutually Assured Destruction.b. Money spent for presents when you have offended your spousec. . A fund from which you can spend when you are angry e. A certain amount of money allocated to each spouse each month that they can spend however they want, without accounting to the other spouse
What is "mad money?"b.Money spent for presents when you have offended your spousec. A fund from which you can spend when you are angryd. A certain amount of money allocated to each spouse that they can spend however , without accounting for d. A certain amount of money allocated to each spouse each month that they can spend however they want, without accounting to the other spouse

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