What Is First Step in Budgeting

question 76

Multiple Choice

What is first step in budgeting?

• A)Determining your net worth
• B)Establishing good money management habits
• C)Assessing your current financial position
• D)Establishing a good credit rating

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Definitions:

Index

A statistical measure of change in a representative group of individual data points, often used in finance to track the performance of markets or sectors.

Stock Split

A corporate action where a company divides its existing shares into multiple shares, effectively reducing the price of an individual share for investors while keeping the overall market capitalization the same.

Value-Weighted Index

An stock index in which each component is weighted according to its market value.

Price-Weighted Index

A stock market index in which each company's stock is included in proportion to its share price, meaning higher-priced stocks have more influence on the index's performance.