AnswersGA-GSE Personal Finance and EconomicsUnderstanding Net Worth

Understanding Net Worth — Unit test Answers

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Rosetta listed her assets and liabilities on a personal balance sheet. Rosetta’s Balance Sheet (April 2013)AssetsLiabilitiescash$900credit card$4,000investments$1,100student loan$2,000 house$150,000mortgage$100,000car$8,000car loan$5,000Total Total If Rosetta sells her house and pays off the mortgage, how much should she receive (assuming there are no other costs associated with selling the house)?

A
$42,000
B
$50,000
C
$52,000
D
$60,000
2
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Dante listed his assets and liabilities on a personal balance sheet. Dante’s Balance Sheet (August 2013)AssetsLiabilitiescash$900credit card$4,000investments$1,100student loan$1,000house$150,000mortgage$100,000car$8,000car loan$5,000Total Total Which statement is true about the value of Dante’s assets and liabilities?

A
He has $50,000 more in assets than in liabilities.
B
He has $50,000 more in liabilities than in assets.
C
He has $110,000 more in liabilities than in assets.
D
He has $160,000 more in assets than in liabilities.
3

[BLANK]

A
salary
B
tuition
C
hourly pay
D
employee benefits
4

[BLANK]

A
one year
B
two years
C
three years
D
four years
5

Which statement about tuition is the most accurate?

A
Four-year universities have the lowest tuition.
B
Community colleges tend to be more expensive.
C
Public colleges are cheaper for in-state residents.
D
Tuition is higher for public colleges than private ones.
6

Aisha’s income statement for the month of June is shown. Which expression will find Aisha’s net income for June?

Question illustration
A
2,700 dollars divided by 1,300 dollars
Option A
B
1,300 dollars minus 2,700 dollars
Option B
C
1,300 dollars + 2,700 dollars
Option C
D
2,700 dollars minus 1,300 dollars
Option D
7

Which statement best describes a college education?

A
An employer typically pays for it in order to educate an employee.
B
The student pays for it, and it is required in many professions.
C
It usually takes two years to complete and tends to focus on technical training.
D
It lasts a short period of time—only a few months, or even weeks.
8

Patrick has assets that total $9,500. His liabilities total $1,900. Which expression will find Patrick’s net worth?

A
9,500 dollars divided by 1,900 dollars
Option A
B
1,900 dollars minus 9,500 dollars
Option B
C
1,900 dollars minus 9,500 dollars
Option C
D
9,500 dollars minus 1,900 dollars
Option D
9

Roberto listed his assets and liabilities on a personal balance sheet. Roberto’s Balance Sheet (September 2013)AssetsLiabilitiescash$1,800credit card$4,000investments$6,200personal loan$1,000house$150,000mortgage$100,000car$8,000car loan$5,000Total Total After creating the balance sheet, Roberto decided to use his investments to pay off his car loan. How will that decision affect the difference between his assets and liabilities?

A
It will make the assets $5,000 less than the liabilities.
B
It will make the assets $5,000 more than the liabilities.
C
The difference between the assets and the liabilities will remain the same.
D
The difference between the assets and the liabilities cannot be compared.
10

Which statement best explains a grant?

A
A grant is money awarded to a student, usually based on financial need.
B
A grant is aid given to a student by an institution, often based on academic success.
C
A grant is money borrowed by a student to pay for an education that will need to be repaid.
D
A grant is the price of attending classes at a school.
11

How can a student pay for an education as part of a work-study program?

A
by taking a school job as part of a financial aid plan
B
by agreeing to work in the government for a scholarship
C
by agreeing to serve in the military after getting a degree
D
by working at a job that is close to the college or university
12

What is included in an individual’s personal assets? Select three options.

A
number of dependents
B
money
C
career
D
property
E
investment
13

The chart describes four situations involving financial responsibility.Financial ResponsibilityPersonFinancial DecisionsHallieHas multiple loans at the same timeHaydenHas more income than the amount of debtAlisonMade payments less than the minimum amount dueJoelMade late payments several times before the bill was paidWhich person is financially responsible?

A
Hallie
B
Hayden
C
Alison
D
Joel
14

Barbara has $70.00 in her pocket and a $20 gift card. Which purchase will she be able to make without having to use her credit card?

A
a portable radio for $65.95 and speakers for $29.99
B
five books for $18.95 each
C
headphones for $25.99 and eight CDs for 8.99 each
D
six puzzles for $11.99 each and a board game for $15.89
15

The benefits a worker receives from an employer typically include

A
federal grants.
B
the hourly pay rate.
C
interest on student loans.
D
medical and dental coverage.
16

Anastasia makes a good salary but wants to be sure she has good credit so she can buy a condominium when she has saved enough money for a down payment on a mortgage. What is the best thing she can do to improve her creditworthiness?

A
She should take out more debt to improve her credit score.
B
She should pay down her student loan and credit card debt.
C
She should apply for more credit cards to improve her credit history.
D
She should get a second job to make more money.
17

When someone is considering a career as a lawyer, future earnings minus the cost of law school is the

A
net cost.
B
net benefit.
C
future cost.
D
future benefit.
18

Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. What is Keisha’s net worth?

A
$88,700
B
$91,700
C
$292,700
D
$496,700
19

What is one benefit of a dual-income household?

A
It provides more money because there are two salaries.
B
It allows more time to take care of household needs and responsibilities.
C
It eliminates the need for day care or other arrangements.
D
It clears schedules, allowing more opportunities to participate in leisure activities.
20

These lists outline the details of two jobs.

Question illustration
A
Job A has employee benefits and a higher salary.
B
Job A offers a higher salary and more days off.
C
Job B provides a higher salary but fewer days off.
D
Job B offers more days off and employee benefits.

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