4
practice testMultiple Choice

Practice Test

Question 4 • Personal Finance

Part A: A person has higher income but large fixed expenses. What happens?

Answer
A
No expenses
B
Less available money
C
No change
D
More flexibility

Explanation

Large fixed expenses use up more of a person’s income before they can spend or save it. So even with higher income, the person has less money available for other needs and choices. The correct choice is “Less available money.”

AI-written and checked against the verified answer.

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