Personal Finance Chapter 3 Test

Your own record of all your transactions

All of the following are examples of fixed expenses EXCEPT for one

When making a budget, electricity can best be described as a

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

Occurs when money is withdrawn from a bank account and the available balance goes below zero

The consensus decision-making process should be used during a _____ to
approve or oppose a financial decision.

Charles has been tracking his spending over the past three months. Which of the following formulas should be entered into the outlined cell to determine how much he has spent on groceries?

Net gain is determined by

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

When faced with a/an _____ goal, such as buying tickets to a concert
determine what budget areas money can be pulled from to pay for the
tickets

A written cash flow plan

The following may be security issues when handling on-line banking EXCEPT one

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

A personal budget for independent living must list all of your monthly variable and fixed expenses including rent, utilities, food, and saving. Your total budget must equal your

The envelope system works great for managing spending on things that donʹt normally have a fixed monthly expense.

Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses

The most effective way to control your money and debt is

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

The amount that your family could save each month would change as they proceed through the life cycle. They would be able to save the least amount in the following situation

Money should be set aside in a/an _____ account for short-term goals such as purchasing new tires or replacing brakes on a vehicle

A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero

When you are depositing a check into your savings account, the best type of endorsement to use is a

To open a checking account, you will need all of the following EXCEPT for one

The following are all various types of checking accounts EXCEPT for one

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

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

A written budget, if followed, removes__________from your finances.

Discretionary income may be spent on all of the items below EXCEPT for one

Expenses that remain the same from month to month

Budgeting is crucial to your financial success.

Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchases.

Select one of the reasons why your checkbook will not reconcile with the monthly statement

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

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

The benefit of using on-line banking is

Percentage of Americans living paycheck to paycheck:

Select the one item that is an economic want, not a need.

To match your bank statement with your checkbook

The first step in the checking account reconciliation precess is

Mary opens a business in her own residence to save money. As the business
starts to expand, Mary decides to hire two employees and relocate the
business to a store. Mary is presented with a choice of renting a small
business front containing four offices or purchasing a large building with 10
offices and a lobby. Renting the smaller office represents

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

A variable expense is described as an expense that

Which of the following should be performed to ensure that all checks,
transfers, deposits, and payments are accounted for on the bank statement?

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

A debit card cannot be used for online purchases.

A Federal Reserve System's main function is to

Online bill pay allows you to make payments to whomever you wish without having to write a check and send it in the mail.

Ben is a young professional who is living on his own for the first time and
realizes that he is responsible for 100 percent of the utilities. After developing a budget, Ben decided to remove _____ from his expenses because it is not necessary for him or the house to function.

Your monthly budget should include:

Your bank or credit union may charge your checking account a fee if you