Chapter 2 Quiz Review

Although most Americans think that budgeting is important, approximately ______ of Americans actually use a budget.

• 75%

• 50%

• 23%

• 35%

Which of the following is NOT a component of a budget?

• Donations

• Income

• Savings

• Credit score

What are the Four Walls?

• Public services, university fund, restaurants, and car insurance

• Mobile bill, car insurance, housing, and money for the cinema

• Food, public services, transport, and university fund

• Food, public services, housing, and transport

Online budgeting applications are more effective than budgeting with pen and paper.

• True

• False

How many categories should you have in your budget?

• 15 or more

• No more than 10

• At least 3

• No limit; use as many as you need to keep your budget accurate!

How often should you create a budget?

• Daily

• Weekly

• Monthly

• Semiannually

If you get married, only one person is responsible for making the budget.

• True

• False

What does a budget show you?

• How much money you plan to have come in and go out during the month

• How much you need to save

• How much money you need to earn

• How much money you spent last month

Detailed categories in your budget will help you make better spending decisions.

• True

• False

A budget tells you what will happen with your money, while a cash flow statement shows what has already happened.

• True

• False