Personal Finance - Unit 1 review

Exchanging goods or services for other goods or services, without using money is known as _________:

• needs

• wants

• barter

• supply

An expense that stays the same month-to-month and does not depend on usage is known as ___________ expenses. Example, rent and student loan payment.

• fixed

• constant

• variable

• permanent

A __________ is an estimate of your income and your expenses for a period of time:

• money plan

• fixed plan

• budget

• debit plan

If your budget shows that you spent more money than you have received, you have a(n):

• deficit

• surplus

• shortfall

• variable expenses

Some monthly expenses change in dollar amount based on usage, which means that they are ___________ expenses. For example, food, gas, electricity.

• fixed

• exempt

• questionable

• variable

An example of a fixed expense is:

• entertainment

• apartment rent

• restaurants

• vacation

If you received more money than you have spent, you have a(n):

• deficit

• surplus

• shortfall

• variable expense

The following is usually considered a variable expense:

• mortgage payment

• electric bill payment

• rent payment

• car payment

What is the purpose of a W-4 form?

• To tell you how much has been taken out of your paycheck

• Provides info for employer to know how much to take out of your check

• To tell you how much to pay in taxes each month

• To tell you how much tax you will owe at the end of the year

Which of the following is NOT a deduction that comes out of your paycheck?

• income taxes

• Social security taxes

• Medicare taxes

• Car insurance