Expenses, Savings, and Interest

Going to get your oil changed twice a year would be considered what kind of expense?

• Fixed

• Variable

• Periodic

• Discretionary

Paying your rent every month would be considered what kind of expense?

• Fixed

• Variable

• Periodic

• Discretionary

You get into a fender bender accident. You have to pay out of pocket for car repairs. What kind of expense would this be?

• Fixed

• Variable

• Periodic

• Discretionary

Every month, your electric bill changes based on how much power you used. What kind of expense would this be?

• Fixed

• Variable

• Periodic

• Discretionary

You are given a credit card that you can buy $10,000 worth of goods with before you have to start paying it back. What is the $10,000?

• credit score

• credit limit

• overdraft

• annual fee

A retail credit card can be used at almost any store.

• True

• False

What kind of investment is like a reverse loan: you loan money to a bank or business and get paid back, plus interest in return?

• savings account

• stock

• bond

• mutual fund

What does IRA stand for (in business)?

• Irish Republican Army

• investment rollover accruals

• inventory restoring assets

• individual retirement account

What kind of investment involves buying a portion of a company, where your share's value depends on the company's performance?

• 401K

• stocks

• budgets

• CD

Diversifying your investments is a bad idea because it is riskier than putting all of your money into one investment.

• True

• False