Budgeting Quiz 3 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. What is the last step in creating a budget?

Correct Answer: A) Balance & adjust your budget.

2. ..... is commonly considered a flexible expense.

Correct Answer: D) Entertainment.

3. In what category of a typical family budget do people spend most of their money?

Correct Answer: B) Housing.

4. The difference between the predicted and actual budgeted figures is known as:

Correct Answer: A) Variance.

5. The person renting a property.

Correct Answer: B) Tenant.

6. In your budgeting process, when should you look at recurring expenses?

Correct Answer: A) Before reviewing your wants.

7. Which of the following is NOT a good way to track your spending?

Correct Answer: A) In your head.

8. Money that is earned through a job.

Correct Answer: B) Income.

9. Purchasing power decreases and it costs more money to buy goods when there is

Correct Answer: B) Inflation.

10. In preparing quarterly budget estimates, who should be responsible for the cash budget?

Correct Answer: C) Finance manager.

11. What type of insurance coverage is considered specialized?

Correct Answer: A) Floods and earthquakes.

12. Which one is a fixed (same amount, same time) payment?

Correct Answer: C) Mortgage.

13. A safe place that holds your money for when you need it

Correct Answer: C) Bank.

14. Which of the following defines budgeting?

Correct Answer: B) The allocation of monetary funds based on a determined structure.

15. Other names for Opportunity Cost

Correct Answer: A) Trade off.

16. Percentage of Americans living paycheck to paycheck:

Correct Answer: A) 70.

17. When our expected income is greater than our expenses we have a .....

Correct Answer: B) Budget surplus.

18. The final phase of the budgeting is to:

Correct Answer: C) Review financial progress.

19. You can prepare for unexpected expenses by regularly putting money into a(n) .....

Correct Answer: B) Emergency fund.

20. Take home pay or ..... is the money left after taxes and deductions have been taken out.

Correct Answer: A) Net pay.