QUIZ: BUDGETS

Fixed Expenses are amounts that will change from month to month.

• True
• False

A budget is usually for a period of one month.

• True
• False

When analyzing your budget, if you are spending more than you earn, the first area you should cut from is savings.

• True
• False

Financial experts advise saving 20% of your net monthly income.

• True
• False

An amount owed (debt or loan) is considered a liability.

• True
• False

When you spend more than you earn, you have a cash ________________.

• deficit
• surplus
• security
• devaluation

Rent and car insurance are examples of ______________.

• disposable income
• variable expenses
• fixed expenses
• irregular expenses

Money you have left to save or spend after taxes and other required deductions are taken is __________________.

• gross income
• fun money
• disposable income
• a surplus

Which of the following is not a part of a personal budget?

• Asset
• Expenses
• Income
• Savings

When you earn more than you spend, you have a cash _________________.

• deficit
• security
• surplus
• devaluation