Financial Products: Stocks and Bonds

Question 1

To calculate your net worth, subtract your total debt from your total assets.

Answer 1

TRUE

Question 2

Current liabilities are those that can typically be paid off in full within 12 months.

Answer 2

TRUE

Question 2

Before you can hope to achieve your financial goals, you will need first to measure your current financial health and develop a plan and a budget.

Answer 2

TRUE

Question 3

An emergency fund is comprised of liquid assets sufficient to cover at least 3 years of expenditures.

Answer 3

FALSE

Question 4

A budget is a process of setting spending goals for the upcoming month or year.

Answer 4

TRUE

Question 5

As long as a financial planner is certified, you do not need to worry about his ability to provide you with the correct financial plan for your situation.

Answer 5

FALSE

Question 6

Opportunity cost is the cost of sacrificing your next best choice.

Answer 6

TRUE

Question 7

You can get away with a lower emergency fund if you have enough credit and insurance.

Answer 7

TRUE

Question 8

If you work in New York City but live in Connecticut for most of the year, you do not need to pay NY state and local income taxes.

Answer 8

TRUE

Question 9

If your liabilities are larger than your assets you have a positive net worth.

Answer 9

FALSE