Review for Test on Personal Finance

Expenses for a typical budget includes taxes, charitable giving, and savings.

• True

• False

When income is earned on an hourly basis, it is called

• pay

• wages

• net income

• gross pay

Fixed expenses would include mortgage, rent, car payments; expenses that would not change each month.

• True

• False

What is the typical source of income?

• Income from selling on eBay

• Income from trading cars

• Income from a job

• Income from stocks

Out of these, which is not a need

• food

• clothing

• shelter

• cable service

Variable expenses can change each month

• True

• False

Examples of variable expenses

• electricity, groceries, and movie tickets

• utilities, rent, and car insurance

• mortgage payment, car payment, and insurance

• None of the above

A budget includes

• income and net pay

• income and expenses

• variable expenses and fixed expenses

• None of the above.

Student loans are income.

• True

• False

The longer you use your credit responsibly, the higher your credit score.

• True

• False