Which of the following increases your net worth?
A)Increasing your retirement savings
B)Starting a pension plan
C)Cashing in an investment to pay off a loan
D)Purchasing a new car

Question

Quizplus · Accepted Answer

Increasing retirement savings directly increases your assets, which in turn increases your net worth.

Answer: B 
 Starting a pension plan is a form of retirement savings, therefore it increases your assets and net worth over time.

Answer: C 
 While cashing in an investment may provide immediate funds to pay off a loan, it also decreases your assets and net worth.

Answer: D 
 Purchasing a new car is a liability rather than an asset, therefore it decreases your net worth.

Which of the Following Increases Your Net Worth