Chapter 20 Test

What is a budget?

• A list of wants and needs

• A plan for saving and spending money based on income and expenses

• A record of past purchases

• A bank statement

Which of the following is an example of a fixed expense?

• Groceries

• Gas for your car

• Monthly rent payment

• Entertainment costs

What is financial responsibility?

• Having a lot of money

• Spending all your income

• Your accountability for handling money

• Paying bills late

During inflation, which action would be LEAST helpful?

• Using coupons when shopping

• Increasing unnecessary spending

• Working additional hours

• Adjusting your budget

What is a warning sign that someone needs financial help?

• Having an emergency fund

• Making only minimum credit card payments

• Comparing prices before buying

• Paying bills on time

How can someone save more money in their budget?

• Increase spending on entertainment

• Ignore sales and coupons

• Cut back on unnecessary expenses

• Buy everything immediately

What is an emergency fund used for?

• Regular monthly bills

• Entertainment expenses

• Unexpected expenses

• Daily lunch money

Which is an example of a variable expense?

• Mortgage payment

• Car insurance

• Grocery bills

• Internet bill

What is income?

• Money spent on goods

• Money received from earnings or gifts

• Money in savings

• Money owed to others

If an $80 shirt is on sale for 25% off, what is the price paid after the discount?

• $40

• $70

• $60

• $20