What Would Happen to Your Net Worth If You Sold

question 38

Multiple Choice

What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?

• A)Since your liabilities decreased,your net worth would increase by $1,000.
• B)Since your assets decreased,your net worth would decrease by $1,000.
• C)Your net worth would increase by $500.
• D)Your net worth would remain the same.

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Definitions:

Poorest Fifth

A term used to describe the bottom 20% of the population in terms of income or wealth distribution.

Income Dropped

A decrease in the amount of money received by an individual, household, or group over a certain period.

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Industrial facilities in Nebraska, known for processing and packing meat, which have significant economic and social impacts on local communities.

Mexican Immigrants

Individuals from Mexico who have moved to another country, often seeking better economic opportunities or escaping difficult conditions.