PERSONAL FINANCE UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS COMPLETE STUDY GUIDE FULL SOLUTION

PERSONAL FINANCE UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE FULL SOLUTION

●● debt ratio
Answer: shows the relationship between debt and net worth.


●● debt ratio
Answer: The lower the ratio the better off financially the person is.


●● debt ratio
Answer: calculated by dividing liabilities by net worth


●● excise tax
Answer: government imposes a tax on specific goods and services such
as alcohol, cigarettes, gasoline, and airline


●● capital gains
Answer: are profits made from the sale of capital assets such as stocks
and bonds


●● Capital gains

, Answer: tax deferred until the asset is sold,


●● Capital Gains Tax
Answer: If held over one year are considered long-term capital gains and
are taxed at a lower tax rate or in some cases are not taxed at all.


●● variable expenses
Answer: change from one period to another,examples Electricity and
food expenditures


●● get advice from your friends
Answer: will help you the least in managing your money?


●● Financial planning
Answer: the process of developing and implementing a coordinated
series of actions to achieve financial success.


●● Financial planning
Answer: need to be reviewed and adjusted to accommodate changing
needs and goals.


●● emergency fund
Answer: Should be an important consideration when saving money