Budgeting Quiz

What is a budget?

• A) A record of past expenses

• B) A spending plan based on income and expenses

• C) A summary of one's debts

• D) A financial investment strategy

What are variable expenses?

• Costs that can change from month to month
• Expenses that are not related to money
• Bills that are paid annually
• Costs that remain constant every month

What are fixed expenses?

• Regular, predictable costs that remain constant each month
• Expenses that are not necessary and can be easily eliminated
• One-time expenses that occur sporadically
• Unpredictable costs that change every month

What term is used to describe expenses that do not change from month to month?

• A) Variable expenses

• B) Impulse spending

• C) Fixed expenses

• D) Surplus

What does having a surplus in a budget mean?

• A) Spending more than what is earned

• B) Having debts that exceed assets

• C) Having leftover money after covering all expenses

• D) The act of purchasing without prior planning

What is the term for when expenses are higher than income?

• A) Surplus

• B) Deficit

• C) Positive net worth

• D) Variable expenses

What is impulse spending?

• Making unplanned or spontaneous purchases without considering the consequences
• Purchasing items after thorough research and comparison
• Carefully planned and budgeted purchases
• Buying only essential items for daily needs

What is delayed gratification?

• The process of giving up on a reward altogether
• The act of immediately indulging in a reward without considering the consequences
• The ability to resist the temptation for an immediate reward and receive a different reward immediately
• The ability to resist the temptation for an immediate reward and wait for a later, more valuable reward.

What is net worth?

• Value of all possessions plus debts
• Value of all assets minus liabilities
• Total income minus expenses
• Amount of money in a bank account

What is positive net worth?

• Value of assets exceeding liabilities
• Value of liabilities exceeding assets
• Having no assets or liabilities
• Owing more liabilities than assets