Budgeting Answers

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1
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When should fixed and variable monthly budgeted expenses first be planned?

a
at the end of each month
d
day by day during the month
a
at the start of each month
a
at least twice per month
2
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To change gross income, someone would need to

s
save more per month.
r
reduce deductions.
e
earn more money.
i
increase withholdings.
3

Kerry knows that a new car is in her future.Which would be the best strategy to help her accomplish this goal?

A
contribute to a savings account
B
give up paying for health insurance
C
stop paying the full amount of rent
D
apply for and open a new credit card
4

From what part of income should someone take savings?

w
what otherwise would be fixed expenses
g
gross income, before other deductions
w
what otherwise would be discretionary income
g
gross income, along with other deductions
5

A short-term financial goal might include saving for

A
a down payment on a house.
B
a piece of furniture.
C
a child’s college fund.
D
one’s retirement.
6

Why is net income lower than gross income?

A
fixed spending
B
budgets
C
withholdings
D
discretionary spending
7

Leo’s car broke down, and he must find money in his limited budget to pay the repair bill.Which of the following is the best solution for Leo to handle the unplanned spending?

A
Leo forgoes going out to dinner.
B
Leo forgoes paying the rent on his apartment.
C
Leo forgoes paying his water bill.
D
Leo forgoes paying his electricity bill.
9

Mindy wants to save money to buy a new couch.Which would be the best strategy for her to accomplish her goal?

A
adopt a dog from a shelter
B
stop paying her credit card bill
C
decrease the budget for basic food needs
D
forgo watching movies online or in the theater

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