Financial Fitness Chapter 3

Question 1

"Pay yourself first" means you should assign a portion of your income to yourself first.

Accepted Answer

True

Question 2

A written cash flow plan

Accepted Answer

Budget

Question 3

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

Accepted Answer

All of the above

Question 4

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

Accepted Answer

All of the above

Question 5

Budgeting is crucial to your financial success.

Accepted Answer

True

Question 6

To match your bank statement with your checkbook

Accepted Answer

reconcile

Question 7

Car repairs are a:

Accepted Answer

intermittent expense

Question 8

Having more than one bank account is never a good idea since it can complicate money manageme

Accepted Answer

False

Question 9

Your monthly budget should include:

Accepted Answer

All of the above

Question 10

The envelope system works great for managing things that are not fixed expenses.

Accepted Answer

True

Question 11

Percentage of Americans living paycheck to paycheck:

Accepted Answer

70

Question 12

Occurs when money is withdrawn from a bank account and the available balance goes below zero

Accepted Answer

Overdraft

Question 13

Which of the following is not a record-keeping feature you could expect from your bank?

Accepted Answer

Customer Service reconciles your account for you

Question 14

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

Accepted Answer

Cash flow statement

Question 15

Series of envelopes that are divided into categories and are used to store cash for purchases

Accepted Answer

Envelope System

Question 16

Non-essential expenses

Accepted Answer

Discretionary

Question 17

Setting up automatic transfers is the easiest way to build your savings.

Accepted Answer

True

Question 18

Eating out is a:

Accepted Answer

Discretionary Expense

Question 19

A debit card cannot be used for online purchases.

Accepted Answer

False

Question 20

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

Accepted Answer

Your own account register

Question 21

Writing and following a budget will help you avoid overspending and impulse buying.

Accepted Answer

True

Question 22

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

Accepted Answer

False

Question 23

Online bill pay allows you to make payments without having to write a check.

Accepted Answer

True

Question 24

The number-one cause of divorce in North America today is stress and disagreements over money.

Accepted Answer

True

Question 25

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

Accepted Answer

Spend less money than he makes

Question 26

Groceries are a:

Accepted Answer

Variable Expense

Question 27

Expenses that remain the same from month to month

Accepted Answer

Fixed

Question 28

Rent is a:

Accepted Answer

Fixed Expense

Question 29

Doing a budget does NOT

Accepted Answer

Make overspending more likely

Question 30

Which of the following statements is false?

Accepted Answer

A budget is meant to summarize a years worth of spending

Question 31

A cash flow plan that assigns a name to every dollar.

Accepted Answer

zero-based budget

Financial Fitness Chapter 3

Questions 32

Financial Fitness Chapter 3

Questions 32