1.Short-term planning should include creating and maintaining an emergency fund with at least 6 months' worth of income.

a.

True

b.

False

2.It is recommended that you maintain a ledger to summarize all of your financial transactions.

a.

True

b.

False

3.Common stocks are liabilities.

a.

True

b.

False

4.The market price of a house is $125,000, and the home buyer borrows $100,000. Two points are equal to $2,000.

a.

True

b.

False

5.The higher the net profit margin of a company, the more money the company earns.

a.

True

b.

False

6.Lenders use the guideline that a borrower's monthly repayment burden should not be more than 20% of the borrower's take-home income.

a.

True

b.

False

7.Debit cards work like writing a check.

a.

True

b.

False

8.Your Social Security contribution depends on your current income and retirement income goal.

a.

True

b.

False

9.Financial planning takes place in a dynamic economic environment created by the actions of the government, business, and consumers.

a.

True

b.

False

10.A chattel mortgage is an instrument that gives lenders title to movable personal property in the event of default.

a.

True

b.

False