Dave Ramsey Chapter 3

Question 1

Rent is a:

Accepted Answer

Fixed expense

Question 2

Cash flow plan that assigns an expense to every $ of your income, total income-total expenses=0

Accepted Answer

Zero-based budget

Question 3

Groceries are a:

Accepted Answer

Variable expense

Question 4

A summary of all the income and outgo over a certain time period

Accepted Answer

Cash flow statement

Question 5

Series of envelopes divided into categories & are used to store cash for planned monthly exp

Accepted Answer

Envelope system

Question 6

The zero-based budget is the best method of budgeting because:

Accepted Answer

Zero-based budget-every $ you make has a purpose

Question 7

Writing & following a zero-based budget will help you avoid overspending and impulse purchases.

Accepted Answer

TRUE

Question 8

Your own record of all your transactions

Accepted Answer

Check register

Question 9

ʺPay yourself firstʺ means you should assign a portion of your income to saving and investing

Accepted Answer

TRUE

Question 10

Doing a budget does not:

Accepted Answer

Make overspending more likely

Question 11

Which of the following is a consequence of overdrawing your checking account?

Accepted Answer

All of these

Question 12

An item that is bought without previous planning or consideration of the long-term effects

Accepted Answer

Impulse purchase

Question 13

The following are guidelines for budgeting with an irregular income except:

Accepted Answer

Bdgting w/ irreg. inc. is no diff. than bdgting w/ reg. inc.

Question 14

Online bill pay allows you to make pymts w/out having to write a check and send it in the mail.

Accepted Answer

TRUE

Question 15

Expenses that remain the same from month to month

Accepted Answer

Fixed

Question 16

Occurs when money is withdrawn from a bank account and the available balance goes below zero

Accepted Answer

Overdraft

Question 17

Your monthly budget should include:

Accepted Answer

All of these

Question 18

Non-essential expenses

Accepted Answer

Discretionary

Question 19

If you write a zero-based budget every month, it is not necessary to reconcile your account.

Accepted Answer

FALSE

Question 20

A debit card cannot be used for online purchases.

Accepted Answer

FALSE

Question 21

To match your bank statement with your checkbook

Accepted Answer

Reconcile

Question 22

A written budget, if followed, removes ______ from your finances.

Accepted Answer

All of these

Question 23

Having more than 1 bank account is never a good idea since it can complicate money management.

Accepted Answer

FALSE

Question 24

Eating out is a:

Accepted Answer

Discretionary expense

Question 25

Which of the following account records would have the most current balance?

Accepted Answer

Your own account register

Question 26

Envelope system works great for managing spending on things that donʹt have a fixed monthly exp

Accepted Answer

TRUE

Question 27

A written cash flow plan

Accepted Answer

Budget

Question 28

Car repairs are a:

Accepted Answer

Intermittent expense

Question 29

Percentage of Americans living paycheck to paycheck:

Accepted Answer

70

Question 30

Which of the following is something that a typical millionaire would do?

Accepted Answer

Spend less money than he or she makes

Dave Ramsey Chapter 3

Questions 30

Dave Ramsey Chapter 3

Questions 30