Semester 1 Review (Business Math)

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What is a fixed expense?

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A fixed expense is a cost that does not change regardless of the level of goods or services produced or sold. Examples include rent, car payments, and insurance premiums.

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What is a variable expense?

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A variable expense is a cost that varies in amount and type, depending on the activity level. Examples include entertainment, groceries, and utility bills.

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What is a 403b plan?

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A 403b plan is a retirement savings plan for certain employees of public schools and tax-exempt organizations, allowing them to save money on a tax-deferred basis.

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What is a budget?

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A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals manage their finances effectively.

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What are the features of a credit card?

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Credit cards allow users to borrow money to make purchases, build a credit score through timely payments, and incur late fees for missed payments.

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What is the purpose of a savings account?

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A savings account is a deposit account held at a financial institution that provides a modest interest rate, allowing individuals to save money while earning interest.

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What is the difference between a debit card and a credit card?

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A debit card withdraws money directly from a checking account, while a credit card allows users to borrow money up to a certain limit to make purchases.

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What is interest?

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Interest is the cost of borrowing money, typically expressed as a percentage of the principal amount, or the return earned on an investment.

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What is a loan?

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A loan is a sum of money borrowed that is expected to be paid back with interest over a specified period.

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What is a credit score?

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A credit score is a numerical representation of a person's creditworthiness, based on their credit history and financial behavior.