Chapter 16 Money Management Test

A car and a home (that are paid off) are examples of

• liabilities
• assets
• net worth
• cash outflow

A payment for rent represents

• a cash inflow
• a cash outflow
• a liability
• an asset

A car loan or a mortgage is a

• Asset

• Liability

A budget allows you to

• live within your income
• make wise buying decisions
• avoid credit issues
• all of the above

A major purpose of a budget is to

• assist with comparison shopping
• achieve financial goals
• reduce a person's enjoyment of life
• gather data for using credit cards

The most uncertain aspect of the budgeting process involves

• estimating variable expenses
• determining net worth
• estimating fixed expenses
• setting financial goals

A tax on earnings is called

• inheritance tax
• estate tax
• income tax
• sales tax

Who approves the Federal budget?

• The President
• The U.S. Senate
• Congress
• IRS

Which bucket makes up the majority of federal government spending (over 60%)?

• Discretionary Spending
• Mandatory Spending
• Government Spending
• Interest on Debt

What is Discretionary Spending not used for

• Education
• Defense
• Social Security
• Transportation