Chapter 2 Terms Quiz

A tool that lets you take control of your finances and is based on goals, expenses and expected income
A. Budget B. Net Worth Statement C. Cash Flow Statement D. Spending Journal
What does the phrase "in the red" mean?
A. You made more money than you spent B. You will have to borrow money to meet your debt obligations. C. You will not make your monthly rent payment this month. D. That you spent more money than you made
Liquidity is a term used to describe assets that can be _______________.
A. taken out of the bank and used as collateral B. used as a way to make a medical payment C. quickly converted into cash D. used as a way to make sure that you don't go over budget
An expense that will not change from month to month is known as what type of expense?
A. variable B. optimal C. Fixed D. discretionary
Allowance, a paycheck, gifts, and investment gains would all be considered what?
A. expenses B. philanthropy C. income D. Real Estate
An expense is the cost of __________ you buy.
A. goods and services B. property and stocks C. discretionary expenses and variable expenses D. expenses and charitable giving
Which definition of fixed expenses is correct?
A. an amount that must be paid every 3 months B. a set amount that must be paid each budget period that does not change C. a variable amount that must be paid each budget period. D. an amount that must be paid only after you receive a second notice of payment

Answer Key
Hide Answer Key

Chapter 2 Terms Quiz (Answer Key)

A tool that lets you take control of your finances and is based on goals, expenses and expected income
A. Budget B. Net Worth Statement C. Cash Flow Statement D. Spending Journal
What does the phrase "in the red" mean?
A. You made more money than you spent B. You will have to borrow money to meet your debt obligations. C. You will not make your monthly rent payment this month. D. That you spent more money than you made
Liquidity is a term used to describe assets that can be _______________.
A. taken out of the bank and used as collateral B. used as a way to make a medical payment C. quickly converted into cash D. used as a way to make sure that you don't go over budget
An expense that will not change from month to month is known as what type of expense?
A. variable B. optimal C. Fixed D. discretionary
Allowance, a paycheck, gifts, and investment gains would all be considered what?
A. expenses B. philanthropy C. income D. Real Estate
An expense is the cost of __________ you buy.
A. goods and services B. property and stocks C. discretionary expenses and variable expenses D. expenses and charitable giving
Which definition of fixed expenses is correct?
A. an amount that must be paid every 3 months B. a set amount that must be paid each budget period that does not change C. a variable amount that must be paid each budget period. D. an amount that must be paid only after you receive a second notice of payment

When you're ready to print, just click this button: Make Print-Friendly