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Personal Finance Final Exam | HDFS 238 - Personal Finance, Quizzes of Business Finance
Class: HDFS 238 - Personal Finance; Subject: Human Develop & Family Studies; University: Michigan State University; Term: Fall 2013;
Typology: Quizzes
2012/2013
1 / 2
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Download Personal Finance Final Exam | HDFS 238 - Personal Finance and more Quizzes Business Finance in PDF only on Docsity! TERM 1 Liquidity Ratio DEFINITION 1 Monetary Assets/Monthly Expenses Determines # of months you could pay off expenses w/ only monetary assets & no income TERM 2 Asset to Debt Ratio DEFINITION 2 Total Assets/Total Debts Do I have enough assets to meet my debt obligation? TERM 3 Debt Service to Income Ratio DEFINITION 3 Annual Debt Repayments/Gross Income Ratio of 36% (.36) or less is good TERM 4 Debt Payment to Disposable Income Ratio DEFINITION 4 Monthly Non-Mortgage Debt/Monthly disposable income Ratio of 14% or less is good TERM 5 Investment Asset to Total Asset Ratio DEFINITION 5 Investment Assets/Total Assets 10% (20 yr old) 11-30% (30 yr old) 30%+ (40 yr old)