Personal Finance Ch. 2 Study
Guide Exam Questions with
Correct Answers
What does a budget show you - Answer- How much money you plan to come in and go
out during the month
The first priority in your budget should be - Answer- giving
Detailed categories on your budget will help you make better spending decisions -
Answer- True
How many categories should you have in you budget - Answer- No limit; use as many
as you need to keep your budget accurate
Which of the following is NOT a component of a budget - Answer- credit score
Research shows that nearly half of Americans feel stress and anxiety about the amount
of what they have - Answer- Personal debt
Going to the movies is an example of what types of expenses? - Answer- discretionary
and variable
What should you do if you overspend in one category of your budget - Answer- Adjust
your budget by removing money from other spending categories.
What are the four walls - Answer- food, utilities, shelter, and transportation
What is the envelope system - Answer- It's a method of budgeting that uses envelopes
labeled with specific budget categories for your cash.
Your monthly rent payment is an example of a variable expense. - Answer- False
Online budgeting apps are more effective than budgeting with pen and paper. - Answer-
False
If you get married, only one person is responsible for budgeting. - Answer- False
What makes a budget a zero-based budget? - Answer- Your income minus expenses
equal zero
Guide Exam Questions with
Correct Answers
What does a budget show you - Answer- How much money you plan to come in and go
out during the month
The first priority in your budget should be - Answer- giving
Detailed categories on your budget will help you make better spending decisions -
Answer- True
How many categories should you have in you budget - Answer- No limit; use as many
as you need to keep your budget accurate
Which of the following is NOT a component of a budget - Answer- credit score
Research shows that nearly half of Americans feel stress and anxiety about the amount
of what they have - Answer- Personal debt
Going to the movies is an example of what types of expenses? - Answer- discretionary
and variable
What should you do if you overspend in one category of your budget - Answer- Adjust
your budget by removing money from other spending categories.
What are the four walls - Answer- food, utilities, shelter, and transportation
What is the envelope system - Answer- It's a method of budgeting that uses envelopes
labeled with specific budget categories for your cash.
Your monthly rent payment is an example of a variable expense. - Answer- False
Online budgeting apps are more effective than budgeting with pen and paper. - Answer-
False
If you get married, only one person is responsible for budgeting. - Answer- False
What makes a budget a zero-based budget? - Answer- Your income minus expenses
equal zero
