Define the following terms

A budget is:

• A plan for managing income and expenses

• A type of investment

• A government policy

• A marketing strategy

What is the difference between 'Take home pay' and 'Income'?

• Take home pay is the amount received after deductions, while income is the total earnings before deductions.

• Take home pay is the total earnings before deductions, while income is the amount received after deductions.

• Take home pay and income are the same.

• Take home pay is only bonuses, while income is salary.

'Credit' is defined as:

• A sum of money borrowed from a bank or lender, to be paid back later

• A type of expense in a business

• A form of payment using only cash

• A method of reducing liabilities

What is the definition of 'Debit'?

• An entry recording an amount owed

• An entry recording an amount received, listed on the right-hand side or column of an account.

• A summary of all financial transactions in a period.

• A document used to request payment.

'Service Credit' is defined as:

• The period of time an employee has worked that counts toward retirement benefits.

• A type of customer reward program.

• A credit given for community service activities.

• A discount on services provided by a company.

An 'Auto title loan' is:

• A loan where a vehicle's title is used as collateral

• A loan for purchasing a house

• A loan given without any collateral

• A loan for education purposes

The term 'Annual Percentage Rate' refers to:

• The yearly interest rate charged on borrowed money, including fees

• The total amount borrowed in a year

• The monthly payment on a loan

• The principal amount of a loan

Finance charge is defined as:

• The total cost of borrowing, including interest and fees

• The amount of money deposited in a savings account

• The principal amount of a loan

• The value of an asset after depreciation

A 'Pyramid scheme' is:

• A legitimate investment plan

• A business model that recruits members via a promise of payments for enrolling others into the scheme

• A government-approved savings plan

• A type of insurance policy

Juanito has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?

• A budget deficit of $200
• A budget deficit of $4800
• A budget surplus of $200
• A budget surplus of $4800