Practice Test Answers

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22
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What type of asset is a piece of land owned by an individual?

A
liquid asset
B
intangible asset
C
tangible asset
D
financial asset
24

If 54% of a person's budget is dedicated to fixed expenses like rent and loan payments, what impact does this have on the ability to adjust the budget when unexpected expenses arise?

A
It has no impact on budget flexibility.
B
It guarantees money will be left over for savings.
C
It limits flexibility because most of the budget is already committed.
D
It makes it easier to adjust the budget.
25

If 54% of a person's budget is dedicated to fixed expenses like rent and loan payments, what impact does this have on the ability to adjust the budget when unexpected expenses arise?

A
It guarantees money will be left over for savings.
B
It makes it easier to adjust the budget.
C
It has no impact on budget flexibility.
D
It limits flexibility because most of the budget is already committed.
26

Ashton’s gross income last year was 43 dollars comma 250 If his income tax rate is 18 percent , how much tax did Ashton pay?

A
7 dollars comma 785 point 0 0
B
35 dollars comma 465 point 0 0
C
42 dollars comma 471 point 5 0
D
778 point 5 0 dollars
27

What type of asset is a piece of land owned by an individual?

A
liquid asset
B
financial asset
C
tangible asset
D
intangible asset
28

What is Amrom’s current net worth? Formula: net worth = assets - liabilities

A
195 dollars comma 000
B
200 dollars comma 000
C
190 dollars comma 000
D
192 dollars comma 500
30

What will happen to Idy’s net worth if she buys a new $⁢15,000 car using a $⁢10,000 loan and $⁢5,000 from her savings, while selling her old car for $⁢8,000 ? Formula: net worth = assets - liabilities

A
Her net worth will increase by 5 dollars comma 000.
B
Her net worth will decrease by 10 dollars comma 000.
C
Her net worth will decrease by 5 dollars comma 000.
D
Her net worth will remain the same.
31

Which long-term savings fund has the smallest reduction in the adjusted budget?

A
retirement savings
B
emergency fund
C
future travel savings
D
transportation
32

What is the most significant long-term impact on Sebastián's budget?

A
increasing emergency fund contributions
B
halting retirement savings
C
lowering transportation costs
D
reducing entertainment expenses
33

What is the most significant long-term impact on Sebastián's budget?

A
halting retirement savings
B
reducing entertainment expenses
C
increasing emergency fund contributions
D
lowering transportation costs

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