Semester 1 Practice Final

Front

What should be the first priority in your budget?

Back

Giving.

Front

Is your monthly rent payment a variable expense?

Back

False. Monthly rent is a fixed expense.

Front

What association made borrowing money to attend college easier in 1972?

Back

The Student Loan Marketing Association (SLMA).

Front

What is the first step to take when planning for a large purchase?

Back

Decide how much you'll need to save and the time frame you want to save it in.

Front

How do you calculate your net worth?

Back

Subtract your liabilities from your assets.

Front

What is a fixed expense?

Back

An expense that does not change from month to month, such as rent.

Front

What is a variable expense?

Back

An expense that can change from month to month, such as groceries.

Front

What is the purpose of a budget?

Back

To plan and track income and expenses.

Front

What are assets?

Back

Items of value owned by an individual, such as cash, property, and investments.

Front

What are liabilities?

Back

Debts or obligations that an individual owes to others.