D363 Personal Finance - all assessments 2025
(ALL QUESTIONS WITH CORRECT ANSWERS)
Western Governors University
Section 1 – Lesson 1
Question 1
Each month, Jack deposits money into his personal retirement account,
which his employer matches. Additionally, Jack deposits money into his
savings account and an emergency fund. Jack’s car breaks down and needs
repairs.
What is the best payment source for this unexpected and
necessary repair? His emergency fund
His employer-funded retirement
account His savings account
His personal retirement
account correct
Answer
Correct:
The emergency fund exists for events that Jack did not predict, such as
fixing a car or replacing a major appliance.
Question 2
What should be done first to manage personal spending
habits? Creating a budget that lists income and
expenses
Opening an investment account
Paying off credit card bills in full each
month Opening a retirement
account
correct
Answer
Correct:
A budget that lists expenses and income is the first step of managing
personal spending habits.
Question 3
Which personal finance philosophy should Diego adhere to each month in
,order to manage his personal spending habits wisely?
Diego should pay his rent first each
month. Diego should save money up
front each month. Diego should make
charitable contributions.
Diego should invest in the stock
market. correct
Answer
Correct:
Wise money managers pay themselves first each month by putting money
into savings first.
Question 4
Kamal just got a new job with a 25% raise. His take-home pay after taxes,
payment to retirement, and the cost of health insurance is $4,500 per
month. He is developing a new budget based on his increased salary and
needs to decide if he can afford to upgrade to a more expensive
apartment. (Rent would increase by $500 per month.) Below are his
monthly expenses:
EXPENSE COST
RENT FOR NEW APARTMENT $1,500.00
ELECTRIC $100.00
MOBILE PHONE $50.00
INTERNET $50.00
RENTER'S INSURANCE $50.00
AUTO INSURANCE $100.00
FOOD $150.00
GAS FOR CAR $100.00
TOTAL MONTHLY EXPENSES $2,100.0
0
Which decision should Kamal make about the apartment upgrade, based
on good financial practices?
Kamal can upgrade his apartment because his monthly living expenses are
below 50% of his take-home pay.
Kamal should stay in his current apartment; the budget shown here
indicates that the increase will take too much cash away from other areas,
like groceries and internet charges. Kamal should stay in his current
apartment because the extra $500 per month will cause him to overspend
his budget each month, resulting in a net loss.
Kamal can upgrade his apartment; it is only $500 more than he was
paying, and his new job came with a 25% increase in pay.
correct
Answer
Correct:
Financial experts recommend that your monthly living expenses stay at
or below 50% of your take-home pay, so it would not be irresponsible for
Kamal to upgrade his apartment.
Question 5
Anika wants to start saving money to buy a new car. She decides to put
together a statement that tracks her income and expenses for each month.
,She wants to learn what spending habits she has and where she can be
more responsible.
Which statement should Anika
create? Net worth statement
Surplus statement
Balance Sheet
statement Cash flow
statement correct
Answer
Correct:
A cash flow statement, also known as an income and expense statement,
summarizes income and expense transactions over a certain period of time,
usually monthly. This statement is the best way to know where your money
went.
Question 6
Ren is creating a financial statement to see where he is financially. He lists
everything he owns with monetary value, and he lists the amounts he owes
others, including his car payment. The goal is to determine his net worth.
Which financial statement is Ren
creating? A fair market value
statement
An income and expense
statement Gains and losses
statement
A balance sheet
statement correct
Answer
Correct:
A balance sheet statement details net worth by listing assets, their values,
and the debts owed to others. This statement will help Ren to determine his
net worth.
Question 7
Eva is creating a balance sheet for herself. She lists her assets, such as
the value of her home, retirement account, and the extra plot of land she
owns. Finally, she lists her liabilities, including the mortgage and debt.
ASSETS VALUE
HOME $185,000.00
, RETIREMENT ACCOUNT $120,000.0
0
LAND $55,000.0
0
TOTAL ASSETS $360,000
.0
0
Liabilities Balance
Mortgage balance $85,000.0
0
Land balance $15,000.0
0
Total Liabilities $100,000
.0
0
What is Eva’s net worth given the assets and liabilities?
$260,000
$140,000
$460,000
$120,000
correct
Answer
Correct:
To calculate your net worth, you need to subtract your liabilities from your
assets. Thus,
$360,000 total assets minus $100,000 total liabilities equals a net worth of
$260,000.
Question 8
Which type of asset is an
engagement ring? Investment asset
Monetary
asset
Tangible
asset Short-
term asset
correct
Answer
Correct:
Goods such as jewelry, tools, boats, and electronics are examples of tangible
assets.
Question 9
Maria is making a list of all her expenses. She is trying to organize them into
the appropriate categories.
Which type of expense is a
transportation cost? Contractual
Inflexible
Variable
Fixed
correct
Answer
Correct:
Transportation costs may include gasoline, maintenance, registration,
insurance, and public transportation. Since these costs may change from
month to month, they are variable costs.
(ALL QUESTIONS WITH CORRECT ANSWERS)
Western Governors University
Section 1 – Lesson 1
Question 1
Each month, Jack deposits money into his personal retirement account,
which his employer matches. Additionally, Jack deposits money into his
savings account and an emergency fund. Jack’s car breaks down and needs
repairs.
What is the best payment source for this unexpected and
necessary repair? His emergency fund
His employer-funded retirement
account His savings account
His personal retirement
account correct
Answer
Correct:
The emergency fund exists for events that Jack did not predict, such as
fixing a car or replacing a major appliance.
Question 2
What should be done first to manage personal spending
habits? Creating a budget that lists income and
expenses
Opening an investment account
Paying off credit card bills in full each
month Opening a retirement
account
correct
Answer
Correct:
A budget that lists expenses and income is the first step of managing
personal spending habits.
Question 3
Which personal finance philosophy should Diego adhere to each month in
,order to manage his personal spending habits wisely?
Diego should pay his rent first each
month. Diego should save money up
front each month. Diego should make
charitable contributions.
Diego should invest in the stock
market. correct
Answer
Correct:
Wise money managers pay themselves first each month by putting money
into savings first.
Question 4
Kamal just got a new job with a 25% raise. His take-home pay after taxes,
payment to retirement, and the cost of health insurance is $4,500 per
month. He is developing a new budget based on his increased salary and
needs to decide if he can afford to upgrade to a more expensive
apartment. (Rent would increase by $500 per month.) Below are his
monthly expenses:
EXPENSE COST
RENT FOR NEW APARTMENT $1,500.00
ELECTRIC $100.00
MOBILE PHONE $50.00
INTERNET $50.00
RENTER'S INSURANCE $50.00
AUTO INSURANCE $100.00
FOOD $150.00
GAS FOR CAR $100.00
TOTAL MONTHLY EXPENSES $2,100.0
0
Which decision should Kamal make about the apartment upgrade, based
on good financial practices?
Kamal can upgrade his apartment because his monthly living expenses are
below 50% of his take-home pay.
Kamal should stay in his current apartment; the budget shown here
indicates that the increase will take too much cash away from other areas,
like groceries and internet charges. Kamal should stay in his current
apartment because the extra $500 per month will cause him to overspend
his budget each month, resulting in a net loss.
Kamal can upgrade his apartment; it is only $500 more than he was
paying, and his new job came with a 25% increase in pay.
correct
Answer
Correct:
Financial experts recommend that your monthly living expenses stay at
or below 50% of your take-home pay, so it would not be irresponsible for
Kamal to upgrade his apartment.
Question 5
Anika wants to start saving money to buy a new car. She decides to put
together a statement that tracks her income and expenses for each month.
,She wants to learn what spending habits she has and where she can be
more responsible.
Which statement should Anika
create? Net worth statement
Surplus statement
Balance Sheet
statement Cash flow
statement correct
Answer
Correct:
A cash flow statement, also known as an income and expense statement,
summarizes income and expense transactions over a certain period of time,
usually monthly. This statement is the best way to know where your money
went.
Question 6
Ren is creating a financial statement to see where he is financially. He lists
everything he owns with monetary value, and he lists the amounts he owes
others, including his car payment. The goal is to determine his net worth.
Which financial statement is Ren
creating? A fair market value
statement
An income and expense
statement Gains and losses
statement
A balance sheet
statement correct
Answer
Correct:
A balance sheet statement details net worth by listing assets, their values,
and the debts owed to others. This statement will help Ren to determine his
net worth.
Question 7
Eva is creating a balance sheet for herself. She lists her assets, such as
the value of her home, retirement account, and the extra plot of land she
owns. Finally, she lists her liabilities, including the mortgage and debt.
ASSETS VALUE
HOME $185,000.00
, RETIREMENT ACCOUNT $120,000.0
0
LAND $55,000.0
0
TOTAL ASSETS $360,000
.0
0
Liabilities Balance
Mortgage balance $85,000.0
0
Land balance $15,000.0
0
Total Liabilities $100,000
.0
0
What is Eva’s net worth given the assets and liabilities?
$260,000
$140,000
$460,000
$120,000
correct
Answer
Correct:
To calculate your net worth, you need to subtract your liabilities from your
assets. Thus,
$360,000 total assets minus $100,000 total liabilities equals a net worth of
$260,000.
Question 8
Which type of asset is an
engagement ring? Investment asset
Monetary
asset
Tangible
asset Short-
term asset
correct
Answer
Correct:
Goods such as jewelry, tools, boats, and electronics are examples of tangible
assets.
Question 9
Maria is making a list of all her expenses. She is trying to organize them into
the appropriate categories.
Which type of expense is a
transportation cost? Contractual
Inflexible
Variable
Fixed
correct
Answer
Correct:
Transportation costs may include gasoline, maintenance, registration,
insurance, and public transportation. Since these costs may change from
month to month, they are variable costs.
