Your net worth will be increased by which of the following actions?
A)Changing your savings from 15 percent to 10 percent of your earnings
B)Investing a $500 birthday present from your grandmother
C)Buying a new stereo system and putting the entire amount on your credit card
D)Purchasing a lottery ticket

Question

Quizplus · Accepted Answer

Investing the $500 birthday present will increase your assets, which will increase your net worth. Changing your savings rate from 15 percent to 10 percent will decrease your savings and therefore decrease your net worth. Buying a new stereo on credit card will increase your liabilities and decrease your net worth. Purchasing a lottery ticket is not a reliable way to increase net worth.

Your Net Worth Will Be Increased by Which of the Following