Question

1. your net worth is calculated by summing up the value of your ______ and subtracting your liabilities.

a. stocks
b. cars
c. assets
d. debts

1. which of the following is more likely to be a long-term liability?

a. house payment
b. credit card bill
c. electric bill
d. water bill

1. if you buy land that increases in value your ______ will increase as long as your debt remains the same or declines.

a. net worth
b. liabilities
c. budget
d. cash flows

1. if your total debt is $4,500 and the value of your assets is $9,100 then your debt-to-asset ratio is equal to ______.

a. 2.02 percent
b. 49.40 percent
c. 57.05 percent
d. 50.60 percent

1. which of the following is a type of college savings plan created by the government to encourage people to save for their children’s and grandchildren’s education?

a. bond savings alternatives
b. stock plans
c. section 529 plans
d. irs college funds

Explanation:

Question 6

Net worth is calculated as assets minus liabilities. Stocks and cars are types of assets, and debts are liabilities. So the correct term to sum is assets.

Long - term liabilities are debts with a repayment period over a year. A house payment (mortgage) is long - term, while credit card, electric, and water bills are short - term (usually paid monthly).

Net worth = assets - liabilities. If land (an asset) increases in value and debt (liability) stays same or declines, net worth (assets - liabilities) will increase. Liabilities are debts, budget is a spending plan, and cash flows are money in/out.

Answer:

c. assets

Question 7