FIN 380 Exam 1 QUESTIONS WITH
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ANSWERS
disposable income - CORRECT ANSWERS ✔✔$ remaining after
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taxes
discretionary income - CORRECT ANSWERS ✔✔$ remaining after
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necessities (more important--what you 'can' spend freely)
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current consumption - CORRECT ANSWERS ✔✔used for
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necessities (food, shelter, clothing)|\ |\ |\
future consumptions - CORRECT ANSWERS ✔✔savings
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(retirement)
opportunity cost - CORRECT ANSWERS ✔✔trade off
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wealth can be measured by.. - CORRECT ANSWERS ✔✔financial
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assets & tangible assets
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examples of financial assets - CORRECT ANSWERS ✔✔money,
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stocks, bonds |\
examples of tangible assets - CORRECT ANSWERS ✔✔personal
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property; real estate (how we generally measure, clothes, etc)
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, utility - CORRECT ANSWERS ✔✔satisfaction level for an item
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liquidity - CORRECT ANSWERS ✔✔how easy it is to convert an
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asset (investement) into cash at its fair market value
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CPI (consumer price index) - CORRECT ANSWERS ✔✔a cost of
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living measurement |\
Assets = - CORRECT ANSWERS ✔✔Liabilities + Net Worth =
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Net Worth = - CORRECT ANSWERS ✔✔Assets - Liabilities =
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Sources of income - CORRECT ANSWERS ✔✔wages/salaries;
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dividends; interest; annuities; gifts |\ |\ |\
gifts up to $x have to be taxed - CORRECT ANSWERS ✔✔above
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$13,000 is taxed for... |\ |\ |\
Surplus or Deficit cash = - CORRECT ANSWERS ✔✔income -
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expenditures = |\
Solvency Ratio - CORRECT ANSWERS ✔✔shows % change allowed
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in mkt value of total assets before insolvency (from balance
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sheet)
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ANSWERS
disposable income - CORRECT ANSWERS ✔✔$ remaining after
|\ |\ |\ |\ |\ |\ |\ |\
taxes
discretionary income - CORRECT ANSWERS ✔✔$ remaining after
|\ |\ |\ |\ |\ |\ |\ |\
necessities (more important--what you 'can' spend freely)
|\ |\ |\ |\ |\ |\
current consumption - CORRECT ANSWERS ✔✔used for
|\ |\ |\ |\ |\ |\ |\
necessities (food, shelter, clothing)|\ |\ |\
future consumptions - CORRECT ANSWERS ✔✔savings
|\ |\ |\ |\ |\ |\
(retirement)
opportunity cost - CORRECT ANSWERS ✔✔trade off
|\ |\ |\ |\ |\ |\
wealth can be measured by.. - CORRECT ANSWERS ✔✔financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
assets & tangible assets
|\ |\ |\
examples of financial assets - CORRECT ANSWERS ✔✔money,
|\ |\ |\ |\ |\ |\ |\ |\
stocks, bonds |\
examples of tangible assets - CORRECT ANSWERS ✔✔personal
|\ |\ |\ |\ |\ |\ |\ |\
property; real estate (how we generally measure, clothes, etc)
|\ |\ |\ |\ |\ |\ |\ |\
, utility - CORRECT ANSWERS ✔✔satisfaction level for an item
|\ |\ |\ |\ |\ |\ |\ |\
liquidity - CORRECT ANSWERS ✔✔how easy it is to convert an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
asset (investement) into cash at its fair market value
|\ |\ |\ |\ |\ |\ |\ |\
CPI (consumer price index) - CORRECT ANSWERS ✔✔a cost of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
living measurement |\
Assets = - CORRECT ANSWERS ✔✔Liabilities + Net Worth =
|\ |\ |\ |\ |\ |\ |\ |\ |\
Net Worth = - CORRECT ANSWERS ✔✔Assets - Liabilities =
|\ |\ |\ |\ |\ |\ |\ |\ |\
Sources of income - CORRECT ANSWERS ✔✔wages/salaries;
|\ |\ |\ |\ |\ |\ |\
dividends; interest; annuities; gifts |\ |\ |\
gifts up to $x have to be taxed - CORRECT ANSWERS ✔✔above
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
$13,000 is taxed for... |\ |\ |\
Surplus or Deficit cash = - CORRECT ANSWERS ✔✔income -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
expenditures = |\
Solvency Ratio - CORRECT ANSWERS ✔✔shows % change allowed
|\ |\ |\ |\ |\ |\ |\ |\
in mkt value of total assets before insolvency (from balance
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sheet)
