56. (p. 53) Which of the following appears on a cash flow statement? A. Assets B. Payments for variable expenses C. Net worth D. Liabilities E. Investment transfers 57. (p. 53) Which of the following appears on a cash flow statement? A. Home value B. Loan payment C. Net worth D. Balance of mortgage E. Transfer from one mutual fund to another 58. (p. 52) Financial experts recommend a monthly savings ratio of at least ____ of gross income. A. 0% B. 5 – 10% C. 20% D. 25 – 35% E. 50% 59. (p. 52) Financial experts recommend a debt/payments ratio of less than ____ of take-home pay. A. 0% B. 5 – 10% C. 20% D. 25 – 35% E. 50% 60. (p. 52) A current ratio of 2 means: A. 2% from each paycheck is available for savings B. The minimum payment for a credit card is 2% of the balance C. 2 months of living expenses are available in case of emergency D. Net worth equals 2 times the amount of debt E. $2 of liquid assets are available for every $1 in current liabilities 61. (p. 52) A debt ratio of 0.5 indicates: A. The balance on the mortgage = 50% of the value of the home B. For every dollar of net worth debt equals $0.50 C. For every dollar of debt net worth equals $0.50 D. For every dollar of take-home pay monthly credit payments equal $0.50 E. For every dollar of assets monthly credit payments equal $0.50 62. (p. 52) Which of the following ratios shows the relationship between debt and net worth? A. Debt ratio B. Current ratio C. Household ratio D. Debt payments ratio E. Savings ratio 63. (p. 52) Which of the following ratios indicates that liquid assets are available to pay liabilities for a household? A. Debt ratio B. Current ratio C. Liquidity ratio D. Debt payments ratio E. Savings ratio 64. (p. 52) Which of the following ratios indicates the number of months in which living expenses can be paid if an emergency arises? A. Debt ratio B. Current ratio C. Liquidity ratio D. Debt payments ratio E. Savings ratio 65. (p. 52) Which of the following ratios indicates the amount of a person’s earnings that goes for payments for credit cards auto loans and other debt (except mortgage)? A. Debt ratio B. Current ratio C. Liquidity ratio D. Debt payments ratio E. Savings ratio
