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Financial Responsibility and Budgeting — Test Answers

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21
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Omar is having trouble paying his rent and making minimum payments on his student loan and credit cards. What should Omar consider doing to improve his situation?

A
Omar should apply for another credit card to buy food with.
B
Omar should get budgeting advice from a consumer credit counselor.
C
Omar should make less than the minimum payments each month.
D
Omar should apply for a personal loan.
22
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To change gross income, someone would need to

A
earn more money.
B
reduce deductions.
C
save more per month.
D
increase withholdings.
23

Which of these is the best example of an asset?

A
the antique diamond necklace someone is wearing
B
an old, used airline ticket
C
the coffee someone drank this morning
D
the electricity in a home
24

What effect would a tax increase have on income?

A
It would increase net income.
B
It would not affect net income.
C
It would not affect gross income.
D
It would reduce gross income.

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