Pretest

Question 1

When a person invests income, he or she

Revolt · Accepted Answer

uses money in a way that will increase its value in the future.

Question 2

Which is the best way to achieve long-term financial goals?

Revolt · Accepted Answer

Save more money from net income.

Question 3

In order to stay on track for long term financial goals, money for emergency spending should be taken first from your

Revolt · Accepted Answer

discretionary money.

Question 4

What type of expense is an example of the cost to drive to and from work?

Revolt · Accepted Answer

a variable expense.

Question 5

A short-term financial goal might include saving for

Revolt · Accepted Answer

a piece of furniture.

Question 6

From what part of income should someone take savings?

Revolt · Accepted Answer

gross income, before other deductions

Question 7

To create a balanced budget, one must make sure to

Revolt · Accepted Answer

spend less than or equal to income.

Question 8

Why might variable expenses change a great deal at different times of year?

Revolt · Accepted Answer

Heating and cooling costs might vary considerably.

Question 9

What is most likely the reason variable expenses should be planned after fixed expenses?

Revolt · Accepted Answer

Fixed expenses are required and constant, but variable expenses are more flexible.

Question 10

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

Revolt · Accepted Answer

at the start of each month

Pretest Answers