Personal Finance Review 2.03-2.05

Adecrease his assets Bincrease his market value Cincrease his liabilities Dincrease his assets.

AMaggie, because her income minus her net worth is a smaller amount than Samantha’s BSamantha, because her income minus her net worth is a larger amount than Maggie’s. CSamantha, because her annual income is higher than Maggie’s. DMaggie, because her net worth is higher than Samantha’s.

AAssets × liabilities = net worth BAssets + liabilities = net worth CAssets / liabilities = net worth DAssets – liabilities = net worth

Athe combined total of his savings and checking accounts. Bthe value of his retirement account Cthe market value of his car Dthe balance on his credit card

AThe market value of his car BHis hockey equipment CMoney in his checking account DMoney in the paycheck he will receive next week

AInterest earned on her savings account BSocial Security income her mother is receiving for her since her father died of cancer last year CTaxes she paid based on her income last year DMoney she received from her grandparents for her birthday

ACell phone BFood CClothing DEntertainment

AAmanda and Marcus are earning more money than they are spending. They should increase spending for noncontractual items to br BAmanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it CAmanda and Marcus are spending more money than they are earning. They need find a way to balance their income and expenses by DAmanda and Marcus are spending more money than they are earning. One of them should consider getting a second job for a time

ATaxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance BClothing he purchased for a job interview, tuition for a class he is taking at the local community college, and interest from CThe scholarship he receives for studying Chinese at the local community college, his car insurance payment, and stock dividen DMoney saved from his paycheck for emergencies, interest paid on his car loan, and his tax refund from filing last year’s tax

AGasoline, food, and entertainment BInternet bill, entertainment, and clothing CCell phone bill, gasoline, and car payment DMotorcycle payment, food, and cell phone bill

ASpending plans are used to record planned income. BA spending plan includes items not usually included when creating a budget. CSpending plans are used to record planned expenses. DWhen creating a spending plan, it is recommended that one examines trade-offs and opportunity costs.

ADecide how much money he can spend for each of the bills he pays each month. BDecide what income and spending categories would reflect his values, needs, and wants. CDevelop a control system that will work with his life style. DTrack his current income and expenses—if he has already created an Income and Expense Statement then he has completed this st

AUse a credit card more often BEarn less income CIncrease purchases DDecrease expenses

AWhen you have allocated all your income into categories for the month BSpending plans are complete each December 31st as one year ends and another year begins CSpending plans are always under revision so they are never complete. DWhen you have all of your current income and expenses recorded