Brookwood High School -Net Worth Dropbox-Think of your bank account like your wallet. The number of dollars going into your wallet daily are your inflow. The number of dollars going out of your wallet daily are your outflow.

Brookwood High School -Net Worth Dropbox-Think of your bank account like your wallet. The number of dollars going into your wallet daily are your inflow. The number of dollars going out of your wallet daily are your outflow. When the inflow rate exceeds the outflow rate the number of dollars in the wallet grows. When the outflow rate exceeds the inflow rate the number of dollars in the wallet falls. When the inflow and outflow are the same the number of dollars in the wallet are unchanged. This illustrates two economics concepts, stocks and flows. Flows are based on units of time, for example, the number of dollars that flows into your wallet in a day. Stocks are the inventory, or stocks, or dollars in your wallet at any given time. Answer the following questions, when you have completed your Net Worth Assignment submit to the Net Worth Dropbox. For the assignment remember that Net Worth = Assets - Liabilities and Cash Flow = Income - Expenses