Personal Finance Chapter 3

Question 1

Series of envelopes that are divided into categories and are used to store cash for expenses for the month

Accepted Answer

envelope system

Question 2

Doing a budget does not:

Accepted Answer

make overspending more likely

Question 3

Groceries are a _______________.

Accepted Answer

Variable expense

Question 4

A debit card cannot be used for online purchases.

Accepted Answer

False

Question 5

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

Accepted Answer

False

Question 6

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

Accepted Answer

ensures that every dollar you make is assigned a purpose.

Question 7

Which of the following statements is false?

Accepted Answer

A budget is meant to summarize stuff from the past year

Question 8

"Pay yourself first" means assigning money to your saving and investments.

Accepted Answer

True

Question 9

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

Accepted Answer

your own check register

Question 10

Car repairs are a ____________.

Accepted Answer

Intermittent expense

Question 11

A cash flow plan that assigns an expense to every dollar of your income and ends up with a zero balance

Accepted Answer

zero-based budget

Question 12

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

Accepted Answer

True

Question 13

Rent is a ______________?

Accepted Answer

Fixed expense

Question 14

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

Accepted Answer

customer service reconciles your account for you

Question 15

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

Accepted Answer

impulse purchase

Question 16

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

Accepted Answer

all of the above

Question 17

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

Accepted Answer

budgeting with an irregular income is no different

Question 18

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

Accepted Answer

cash flow statement

Question 19

Percentage of Americans living paycheck to paycheck?

Accepted Answer

70

Question 20

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

Accepted Answer

All of the above

Question 21

Online bill pay allows you to make payments to whomever you wish without having to mail checks.

Accepted Answer

True

Question 22

Writing a zero-based budget will help you avoid overspending and impulse purchasing.

Accepted Answer

True

Question 23

Occurs when money is withdrawn from a bank account and the available balance goes below 0.

Accepted Answer

Overdraft

Question 24

To match your bank statement with your checkbook

Accepted Answer

reconcile

Question 25

Eating out is a _______________

Accepted Answer

Discretionary expense

Question 26

Your monthly budget should include ____________.

Accepted Answer

All of the above

Question 27

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

Accepted Answer

True

Question 28

Having more than one checking account is never a good idea.

Accepted Answer

False

Question 29

Budgeting is crucial to your financial success.

Accepted Answer

True

Question 30

Which of the following is something a millionaire would do?

Accepted Answer

Spend less money than they make

Question 31

A written cash flow plan.

Accepted Answer

budget

Question 32

your own record of all your transactions

Accepted Answer

check register

Question 33

Non essential expenses.

Accepted Answer

discretionary

Personal Finance Chapter 3

Questions 33

Personal Finance Chapter 3

Questions 33