Introduction to Personal Finance

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Odette has $50,000 in cash, two U.S. Treasury Bonds with a combined face value of $500, a home worth $100,000, and asset-related liabilities in the amount of $75,000. What is her current net worth?

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1. Which of the following assets offers the MOST liquidity?

2. Jeff's receives a paycheck of $2,100 twice per month. His monthly expenses include: $1,500 on rent, $400 on a car payment, $120 for his cellphone, $450 for utilities, $250 for groceries, and $200 for entertainment. After calculating Jeff's cash flow, how much does he have left over for the month?

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About This Quiz & Worksheet

Financial literacy, or an understanding of the role money plays in everyday situations, is the key to managing personal finance. This quiz/worksheet combo helps you understand how to measure and assess financial health and some of the typical issues people face when managing their money.

Quiz & Worksheet Goals

In these assessments you'll be tested on:

  • The definition of liquidity
  • The formula for net worth
  • The impact of investments in your future on your net worth

Skills Practiced

These assessments allow you to practice the following skills:

  • Information recall - access your knowledge on personal finance
  • Knowledge application - use your knowledge to explain the factors used to evaluate financial health
  • Distinguishing differences - compare and contrast net worth and liquidity

Additional Learning

To learn more, review the accompanying lesson, Introduction to Personal Finance. This lesson covers the following objectives:

  • Understand the benefits of personal finance management
  • Explain the significance of negative cash flow
  • Describe how equity in an asset affects net worth
  • Explain how relative liquidity can affect the value of an asset
  • Understand how liabilities affect your ability to borrow money
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