Question

1. Assume you took $2,500 in cash out of your savings account and bought a car worth

$2,500. How much did your net worth change?

Answer 1

The net worth does not change.

Explanation:

Net worth is the sum of all of your assets minus the liabilities.

If you start off with 2,500 in your savings account, then you use the money to buy a car the net worth does not change. You started with a net worth of 2,500 because money in your savings account in considered an asset. You then use that money to buy a car which is an asset, and the car contributes to your net worth.