Question 1.1. The last step in a financial plan is: (Points : 2)

Develop financial plans and strategies to achieve goals Use financial statement to evaluate results of plans and budgets Implement financial plans and strategies Review and revise plans and strategies as life events occur

Question 2.2. Keeping a list of personal information on all family members and their accounts is called a: (Points : 2)

Budget Record-keeping system Cheat sheet Address book

Question 3.3. The balance sheet equation is: (Points : 2)

Total Assets / Total Liabilities = Net Worth Total Assets + Total Liabilities = New Worth Total Assets Total Liabilities = Net Worth Total Liabilities Total Assets = New Worth

Question 4.4. The three parts of your balance sheet are: (Points : 2)

Income, liabilities, balance Assets, expenditures, balance Assets, liabilities, balance Assets, liabilities, net worth Income, liabilities, net worth

Question 5.5. Jack has income of $50,000 and expenses of $22,500. What is Jacks net cash flow? (Points : 2)

$27,500 surplus $27,500 deficit $30,000 deficit $30,000 surplus

Question 6.6. A good way to ensure that property and taxes are paid is: (Points : 2)

Take out an interest only mortgage To set up an escrow account Buy insurance Get a credit report None of these

Question 7.7. If you purchase a house that costs $150,000 and make a 10% down payment, how much would one point cost at closing? (Points : 2)

$765 $2,350 $1,100 $1,530 $1,800

Question 8.8. Mary owns a home that has a current market value of $200,000 and a mortgage balance of $125,000. What is the current equity on the home? (Points : 2)

$50,000 $65,000 $75,000 $100,000

Question 9.9. Sandy wants to avoid paying for private mortgage insurance (PMI) on her new home that she will purchase for $400,000. To avoid PMI insurance, how much of a down payment will she need? (Points : 2)

$20,000 $66,000 $70,000 $80,000

Question 10.10. Wanda currently has $3,000 in her money market account and her monthly expenses are $5,000. Wandas goal is to accumulate three times her monthly expenses in monetary assets. To achieve this goal, how much more money does she need in her money market account? (Points : 2)

$4,500 $8,000 $10,000 $12,000