Econ Final Exam (Answered) 2023/2024
(T/F) The budgeting process starts with monitoring current spending
False
(T/F) Most short-term goals are based on activities over the next two or three
years
False
(T/F) A common long-term goal may involve saving for college for parents of a
newborn child
True
(T/F) Rent is considered a fixed expense
True
(T/F) Flexible expenses stay about the same each month
False
The final phase of the budgeting process is to:
A) set personal and financial goals
B) compare your budget to what you have actually spent
C) review financial process
D) monitor current spending patterns
C
An example of a long-term goal would be:
A) an annual vacation
B) saving for retirement
C) buying a used car
D) completing college within the next 6 months
B
A clearly written financial goal would be:
A) "to save money for college for the next five years"
B) "to pay off credit card bills in 12 months"
C) "to invest in an international mutual fund for retirement"
D) "to establish an emergency fund of $4,000 in 18 months"
D
An example of a fixed expense is:
A) clothing
B) auto insurance
C) an electric bill
D) educational expenses
B
_____ is commonly considered a flexible expense
A) rent
B) a mortgage payment
C) home insurance
D) entertainment
D
(T/F) An electric bill is commonly considered a fixed living expense
, False
(T/F) A security deposit covers the rent for the first month when moving into an
apartment
False
(T/F) A roommate may reduce the financial burden of renting an apartment
True
(T/F) Saving money for a down payment to buy a house is usually considered a
short-term goal
False
(T/F) A lease is designed to protect the rights of both a tenant and a landlord
True
A common flexible expense
associated with apartment
renting is:
A) a security deposit
B) apartment insurance
C) electricity
D) rent
C
A ______deposit refers to money
held to cover possible damage in
an apartment
A) cleaning
B) security
C) telephone
D) utilities
B
A common moving-in cost for an
apartment would be:
A) a down payment
B) building insurance
C) real estate taxes
D) a security deposit
B
A long-term goal would be to:
A) rent an apartment
B) own an apartment building
C) move to a larger apartment
D) buy additional furniture
D
The agreement between a renter and
a landlord is a:
A) security deposit
B) mortgage
C) lease
D) deed
(T/F) The budgeting process starts with monitoring current spending
False
(T/F) Most short-term goals are based on activities over the next two or three
years
False
(T/F) A common long-term goal may involve saving for college for parents of a
newborn child
True
(T/F) Rent is considered a fixed expense
True
(T/F) Flexible expenses stay about the same each month
False
The final phase of the budgeting process is to:
A) set personal and financial goals
B) compare your budget to what you have actually spent
C) review financial process
D) monitor current spending patterns
C
An example of a long-term goal would be:
A) an annual vacation
B) saving for retirement
C) buying a used car
D) completing college within the next 6 months
B
A clearly written financial goal would be:
A) "to save money for college for the next five years"
B) "to pay off credit card bills in 12 months"
C) "to invest in an international mutual fund for retirement"
D) "to establish an emergency fund of $4,000 in 18 months"
D
An example of a fixed expense is:
A) clothing
B) auto insurance
C) an electric bill
D) educational expenses
B
_____ is commonly considered a flexible expense
A) rent
B) a mortgage payment
C) home insurance
D) entertainment
D
(T/F) An electric bill is commonly considered a fixed living expense
, False
(T/F) A security deposit covers the rent for the first month when moving into an
apartment
False
(T/F) A roommate may reduce the financial burden of renting an apartment
True
(T/F) Saving money for a down payment to buy a house is usually considered a
short-term goal
False
(T/F) A lease is designed to protect the rights of both a tenant and a landlord
True
A common flexible expense
associated with apartment
renting is:
A) a security deposit
B) apartment insurance
C) electricity
D) rent
C
A ______deposit refers to money
held to cover possible damage in
an apartment
A) cleaning
B) security
C) telephone
D) utilities
B
A common moving-in cost for an
apartment would be:
A) a down payment
B) building insurance
C) real estate taxes
D) a security deposit
B
A long-term goal would be to:
A) rent an apartment
B) own an apartment building
C) move to a larger apartment
D) buy additional furniture
D
The agreement between a renter and
a landlord is a:
A) security deposit
B) mortgage
C) lease
D) deed
