Unit Test — Unit test Answers

Brian is calculating his tax deductions. He finds that he can deduct $1,225 as a result of money given to charity, $4,391 from interest paid on his mortgage, and $2,821 from what he paid in state and local taxes. What is Brian’s total deduction?

What is the standard deduction used for?

Which of these is an appropriate attitude to take toward personal budgets?a.Personal budgets are mainly useful for managing financial trouble or getting out of debt.b.Personal budgets are useful regardless of your financial status and can be used by anyone.c.Personal budgets make a good tool for beginners or those just starting out, but those with more experience should try to avoid relying on them.d.Personal budgets are useful for people with many investments or large amounts of wealth, but are largely a waste of time for more average people.

Damian wants to save $7200 to buy a car within the next 2 years. Which budget would help Damian save enough money to buy a car in a timely manner with minimal effect on his other essential expenses? Monthly Budget Budget A Budget B Budget C Budget D Income $1000 $1,000 $1,000 $1,000 Expenses- Rent Utilities Food Bus Pass Car Savings School Savings $300 $75 $150 $25 $350 $100 $300 $75 $150 $25 $250 $200 $300 $75 $75 $0 $300 $250 $300 $75 $150 $25 $100 $350 a. Budget A b. Budget B c. Budget C d. Budget D Please select the best answer from the choices provided

What is one difference between yearly and monthly budgets?a.Yearly budgets show a greater degree of planning, so it is appropriate to plan expenses more strictly and in a more detailed fashion in a yearly budget.b.Monthly budgets should focus on the short term, so it is not appropriate to consider planned but future expenses (such as a vacation) in a monthly budget.c.Yearly budgets are a better view of your financial goals, so you should work very hard to avoid changing yearly budgets.d.There is more uncertainty as you plan further ahead, so a yearly budget needs more room to account for unplanned expenses than a monthly budget does.