Ramsey - Chapter 2 - Lesson 2

What is one of the key elements of creating a budget?

• Tracking your expenses

• Learning about different types of investments

• Understanding economic theories

• Studying the history of money

Which of the following is NOT listed as a common budget category for using cash?

• Groceries

• Restaurants

• Gas

• Savings

Which type of expense is described as non-essential?

• Fixed Expense

• Variable Expense

• Intermittent Expense

• Discretionary Expense

Which type of expense can vary in amount and frequency?

• Fixed Expense

• Variable Expense

• Intermittent Expense

• Discretionary Expense

Which type of expense occurs at irregular intervals and is not always the same amount?

• Fixed Expense

• Variable Expense

• Intermittent Expense

• Discretionary Expense

Which budget categories are typically managed with cash according to the document?

• Groceries, restaurants, gas, entertainment, and personal

• Groceries, utilities, gas, entertainment, and personal

• Groceries, restaurants, gas, entertainment, and investments

• Groceries, restaurants, gas, entertainment, and savings

What is the purpose of identifying sources of income and the four different types of expenses in budgeting?

• To understand the basics components of a budget

• To learn how to save money

• To understand investment strategies

• To learn about financial history

Which part of the budget is where you set aside money for your savings goals?

• Income

• Saving

• Giving

• Spending

What type of expense is rent, which you pay once a month and is the same amount every month?

• Variable expense

• Fixed expense

• Intermittent expense

• Discretionary expense

What is a flexible budget?

• A budget that remains the same regardless of changes in activity levels

• A budget that adjusts or flexes with changes in volume or activity

• A budget that is created for a single project

• A budget that is used for long-term planning

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DOK Level 1: Recall