MAJOR SUMMATIVE 1: INTRO

According to the summary, what is the first thing you have to do to create a budget?

• Track your spending

• Add up all of your income after taxes or net pay

• Stick to the budget

• List your expenses

According to the summary, what is the 50/30/20 budget strategy?

• 50% into savings, 30% into wants, 20% into necessities

• 50% into necessities, 30% into wants, 20% into savings

• 50% into wants, 30% into necessities, 20% into savings

• 50% into savings, 30% into necessities, 20% into wants

Define the element of creditworthiness: Conditions.

• Conditions are external factors like industry trends, economic conditions, and the purpose of the loan.

• Conditions refer to the borrower's personal spending habits and lifestyle choices.

• Conditions are the specific assets pledged as collateral for the loan.

• Conditions are the borrower's history of repaying previous debts.

According to the summary, which of the following is considered a savings/future expense in a budget?

• Utilities

• Hobbies

• Investing

• Health

Which type of business loan is used for buying business property and requires a large down payment?

• Real estate Loans

• Equipment Loans

• Line of Credit

• Invoice Financing

Based on the personal budget table, name two types of expenses that are commonly tracked in a budget.

• Rent and groceries

• Vacation and lottery tickets

• Gifts and investments

• Donations and windfalls

Which of the following is NOT typically included as an expense in a monthly budget?

• Rent

• Student Loan

• Streaming Service

• Lottery Tickets

Step 1 in creating a budget is to calculate your income.

• True

• False

Which of the following is NOT listed as a savings/future expense in a budget?

• A) Investing

• B) Savings

• C) Insurance

• D) None of the above

According to the 50/30/20 budgeting rule, what percentage of your income should be allocated to essential needs?

• 30%

• 50%

• 20%

• 70%