46.
A family with two income earners will always need a greater amount of cash reserves than a family with one earner.
ANS: F the need for cash reserves relates to the amount of income and not whether it comes from one or multiple sources.
PTS: 1
47.
PTS: 1
DIF:
easy
REF: p. 69
PTS: 1
DIF:
moderate
REF: p. 77
The asset-to-debt ratio compares total assets with total liabilities and is a broad measure of a household’s financial liquidity.
ANS: T
50.
REF: p. 77
Households dependent on the income from a self-employed person may need a larger emergency cash reserve than others.
ANS: T
49.
moderate
By analyzing financial statements, a person can assess his or her financial condition and progress.
ANS: T
48.
DIF:
PTS: 1
DIF:
moderate
REF: p. 77
A person is insolvent when he or she doesn’t have enough current income to pay all of his or her current bills.
ANS: F
