H&R Block Budget Challenge Exam
2025 Questions and Answers
Auto insurance - --Answer --A type of insurance used by vehicle owners to
cover costs associated with car accidents.
Budget - --Answer --A chart that documents how much money an individual
earns and spends.
Cash Flow - --Answer --The relationship between income and expenses in a
budget. For example, if you spend more money than you have coming in, you have
negative cash flow.
Certificate of Deposit (CD) - --Answer --A savings vehicle offered through
banks with a set maturity date. For example, if you put $5,000 into a five-year CD,
you cannot withdraw the money until the five year maturity date without facing
penalties. However, interest rates are usually higher in CDs than traditional savings
accounts making them desirable for long term savings.
City Income Tax - --Answer --Money collected by some city governments to
be used for city public services, such as side walks and city water systems.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Credit - --Answer --The ability to purchase goods or services with the
promise to pay for them at a later time.
Creditworthiness - --Answer --Demonstrating trust in repayment of
borrowed money.
Credit Card - --Answer --A plastic card that allows an individual to make a
purchase on credit.
Debit Card - --Answer --A plastic card that allows an individual make a
purchase using funds from his or her own bank account(s).
Deductions - --Answer --Money withheld from a paycheck for tax or savings
purposes.
Expenses - --Answer --Money spent on items and bills.
Federal Income Tax - --Answer --Money collected by the federal
government to be used for a variety of national public services, such as the
military, national parks and monuments.
Fixed - --Answer --Income and expenses that are the same each month.
Flexible - --Answer --Income and expenses that are vary each month.
Gross Income - --Answer --Total pay before deductions
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2025 Questions and Answers
Auto insurance - --Answer --A type of insurance used by vehicle owners to
cover costs associated with car accidents.
Budget - --Answer --A chart that documents how much money an individual
earns and spends.
Cash Flow - --Answer --The relationship between income and expenses in a
budget. For example, if you spend more money than you have coming in, you have
negative cash flow.
Certificate of Deposit (CD) - --Answer --A savings vehicle offered through
banks with a set maturity date. For example, if you put $5,000 into a five-year CD,
you cannot withdraw the money until the five year maturity date without facing
penalties. However, interest rates are usually higher in CDs than traditional savings
accounts making them desirable for long term savings.
City Income Tax - --Answer --Money collected by some city governments to
be used for city public services, such as side walks and city water systems.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Credit - --Answer --The ability to purchase goods or services with the
promise to pay for them at a later time.
Creditworthiness - --Answer --Demonstrating trust in repayment of
borrowed money.
Credit Card - --Answer --A plastic card that allows an individual to make a
purchase on credit.
Debit Card - --Answer --A plastic card that allows an individual make a
purchase using funds from his or her own bank account(s).
Deductions - --Answer --Money withheld from a paycheck for tax or savings
purposes.
Expenses - --Answer --Money spent on items and bills.
Federal Income Tax - --Answer --Money collected by the federal
government to be used for a variety of national public services, such as the
military, national parks and monuments.
Fixed - --Answer --Income and expenses that are the same each month.
Flexible - --Answer --Income and expenses that are vary each month.
Gross Income - --Answer --Total pay before deductions
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
