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6. If inflation is expected to be 9 percent, how long will it take for prices to double? A. 6 years B. 7 years C. 8 years D. 12 years E. 18 years 7. If a $10,000 investment earns a 4 % annual return, what should its value be after one year? A. $4,000 B. $4,100 C. $10,000 D. $10,040 E. $10,400 8. If Patty Shoemaker estimates that her $100 weekly grocery bill will increase at an annual inflation rate of 4%, what should her weekly grocery bill be in 3 years? A. $30.00 B. $40.00 C. $112.50 D. $112.60 E. $121.60 9. Annual earnings on a $500 Certificate of Deposit earning 4.50% would be A. $20.00 B. $22.50 C. $25.00 D. $500.00 E. $545.0010. Money management refers to annual financial activities necessary to manage personal economic resources. True False 11. In an organized system, credit card records belong in a safe deposit box. True False 12. In an organized system, birth and marriage certificates belong in a safe deposit box. True False 13. Records related to tax returns should be saved for 10 years. True False 14. The two primary personal financial statements include the personal balance sheet and a credit card payoff statement. True False 15. Net worth is the amount owed to others. True False 16. Financial advisers suggest that an emergency fund should cover one to two months of living expenses. True False17. Money management refers to A. Preparing personal financial statements. B. Day-to-day financial activities. C. Trade-offs that occur with financial decisions. D. Storing financial records for easy access. E. Spending money on current living expenses. 18. The inability to pay debts when they are due is called A. Liabilities. B. Insolvency. C. Net worth. D. Cash flow. E. Liquid assets. 19. The equation to calculate net worth is A. Assets - Cash outflows = Net worth. B. Cash inflows - Liabilities = Net worth. C. Cash inflows - Cash outflows = Net worth. D. Assets - Liabilities = Net worth. E. Cash inflows + Liabilities = Net worth