A Personal Balance Sheet Summarizes

question 40

Multiple Choice

A personal balance sheet summarizes

• A)income,expenses and net worth.
• B)cash inflows,outflows and net worth.
• C)assets,net worth,and income.
• D)assets,liabilities,and net worth.

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Definitions:

Nominal Income

The total amount of money earned by an individual or entity before adjustments for inflation or deflation.

Leading Economic Indicators

Variables that predict, or lead to, a recession or recovery; examples include consumer confidence, stock market prices, business investment, and big-ticket purchases, such as automobiles and homes.

Business Cycle

The natural fluctuation of the economy between periods of expansion (growth) and contraction (recession).

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, often measured by a price index.