FM S1 Final Exam

Front

What is the maximum amount insured by the FDIC for money in financial institutions?

Back

$250,000

Front

What are fixed expenses?

Back

Expenses that stay the same from week to week or month to month.

Front

What is the difference between a want and a need?

Back

A want is something you desire but can live without, while a need is something essential for survival.

Front

What type of expense is eating out?

Back

Variable Expense.

Front

Is it true that you should not practice answering common interview questions to sound more authentic?

Back

False.

Front

What is a variable expense?

Back

An expense that can change from month to month, such as groceries or entertainment.

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is the purpose of saving money?

Back

To set aside funds for future needs or emergencies.

Front

What is the difference between gross income and net income?

Back

Gross income is the total earnings before deductions, while net income is what you take home after taxes and deductions.

Front

What is an emergency fund?

Back

A savings account set aside for unexpected expenses.