asked 164k views
0 votes
Income is money a person receives from employment, interest, rent, royalties. _________ refers to the total value of a person's economic situation (land, buildings, businesses, stocks, bonds, bank accounts, income, etc.)

asked
User Nirkov
by
7.9k points

1 Answer

1 vote

Answer:

Net worth

Step-by-step explanation:

A person's net worth is similar to a company's capital or equity, i.e. sum of all assets - sum of all liabilities. A person's net worth provides a picture of your personal financial situation at a certain specific moment in time.

Some people may have a high income but a very low net worth because they simply spend all their money and don't save any. When you are applying for a loan (other than personal loans), e.g. mortgage loan, a bank will generally ask you about your net worth (or they will calculate it for you) because that way they can tell if you are person that is responsible enough to pay back their loans.

answered
User Saladi
by
8.7k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.