13
QuizMultiple Choice

Personal Savings and Consumer Credit: Part Three — Test

Question 13 • Advanced Financial Algebra

What is a high-percentage expense in a budget?

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

Explanation

A high-percentage expense takes up a significant share of a person’s income or budget. For example, housing costs that consume a large part of monthly income would be a high-percentage expense. An expense that is merely annual or easy to reduce is not defined by the proportion of income it uses.

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