Budget — Test Answers

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21
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How can an increase in household size affect a personal budget in the long term?

A
Overall income may decrease.
B
Housing expenses may increase.
C
Grocery expenses may decrease.
D
An emergency fund may no longer be needed.
23

Inaya decides to start saving for a house after getting married. What long-term budget change do they need to focus on based on their adjusted budget?

A
decreasing their emergency fund
B
increasing their future home savings
C
cutting grocery expenses
D
reducing entertainment expenses
26

Inaya decides to start saving for a house after getting married. What long-term budget change do they need to focus on based on their adjusted budget?

A
reducing entertainment expenses
B
decreasing their emergency fund
C
increasing their future home savings
D
cutting grocery expenses
31

Which strategy would help Amrom increase his net worth by using his monthly income effectively?

A
spend more than his income on non-essential expenses to maintain a high standard of living
B
spend his monthly income on purchasing more credit card reward programs
C
use his income to finance a new car by taking out an additional loan
D
allocate a portion of his income to make regular contributions to his retirement account
33

Which action would be a budgeting error?

A
setting aside money for savings each month
B
tracking entertainment spending
C
allocating funds for debt repayment
D
forgetting to budget for an annual insurance payment
34

Which event is likely to create a challenge in Kamari's budget?

A
receiving a monetary gift
B
getting a part-time job with extra income
C
saving money for an upcoming holiday
D
replacing a car tire that is worn out
36

How can an increase in household size affect a personal budget in the long term?

A
Grocery expenses may decrease.
B
Overall income may decrease.
C
An emergency fund may no longer be needed.
D
Housing expenses may increase.
37

What is a high-percentage expense in a budget?

A
a flexible cost that can easily be reduced
B
an expense that occurs only once a year
C
an expense that makes up a small portion of a person's budget
D
an expense that exceeds a significant portion of a person's income
39

What type of asset is real estate?

A
intangible asset
B
liquid asset
C
tangible asset
D
cash asset

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