QUIZ (CHAPTER 3)

What is the main purpose of a household budget?

• To spend more money

• To track income and expenses

• To reduce income

• To avoid saving

  
  

Which of the following is a fixed expense?

• Rent

• Groceries

• Entertainment

• Clothing

What is the second step in creating a household budget?

• Track expenses

• Choose tools

• Set goals

• Determine income
  

Which tool is commonly used for budgeting?

• Calculator only

• Microsoft Excel or Google Sheets

• Television

• Video games

Tracking expenses helps you:

• Spend more money

• Ignore financial goals

• Identify spending patterns

• Increase debt

Which of the following is NOT a benefit of budgeting?

• Increased savings

• Reduced financial stress

• Overspending

• Better debt management

An emergency fund should cover how many months of living expenses?

• 1–2 months

• 3–6 months

• 7–12 months

• 12–24 months

What happens if you hold too much cash without investing?

• It gains value

• It doubles automatically

• It increases your debt

• It loses value due to inflation

A positive money mindset usually leads to:

• Overspending

• Impulsive buying

• Effective budgeting

• Ignoring savings

Which is considered the most liquid asset?

• Property

• Stocks

• Cash

• Bonds