Ravin gets paid $1000 every two weeks and follows the same spending and saving plan unless an emergency arises. The first thing Ravin does when he gets paid is immediately put $350 in
his savings account. Next, using online bill pay through his bank, Ravin spends about $400 on
bills such as his cell phone, electricity, and rent. Ravin withdraws $150 in cash for daily
expenses, and leaves the remaining amount ($100) in his checking account. Based upon
information about Ravin's spending and saving habits, which statement is TRUE?
the
Ravin's annual household income is approximately $55,000.
Ravin's income is used exclusively as a medium of exchange for goods and services
Ravin operates on a "cash only" basis, which is a very smart personal finance
decision.
Ravin allocates $350 every two weeks as a store of value in his savings account