BUS 2204 – PERSONAL FINANCE 2 PRACTICE
TEST 2026 FULL SOLUTIONS REVIEW PACK
◉ Bankruptcy occurs when __________.
a. there is negative net worth.
b. debts are greater than assets.
c. you default on a loan.
d. a. and b.
e. a., b., and c.
Answer: d. a. and b.
◉ If the demand for labor is greater than the supply, then __________.
a. the price of labor is lower.
b. the price of labor is higher.
c. there are fewer jobs available.
d. a. and c.
e. b. and c.
Answer: b. the price of labor is higher.
,◉ The budget process begins with a thorough understanding of your
__________.
a. current financial condition.
b. financial statements.
c. desires and choices.
d. a. and b.
e. a., b., and c.
Answer: e. a., b., and c.
◉ Creating a budget involves __________.
a. projecting realistic behavior.
b. questioning your assumptions.
c. reviewing your financial records.
d. a. and b.
e. a., b., and c.
Answer: e. a., b., and c.
◉ Budgets can be prepared conservatively by __________.
a. underestimating costs.
, b. underestimating earnings.
c. overestimating goals.
d. overestimating results.
e. reconciling behaviors and goals.
Answer: b. underestimating earnings.
◉ Examples of recurring incomes are __________.
a. wages or salary.
b. interest or dividends.
c. lottery winnings.
d. a. and b.
e. a., b., and c.
Answer: d. a. and b.
◉ Examples of non-recurring expenditures are __________.
a. windfalls.
b. loan repayments.
c. automatic deposits.
d. taxes.
e. window replacements.
TEST 2026 FULL SOLUTIONS REVIEW PACK
◉ Bankruptcy occurs when __________.
a. there is negative net worth.
b. debts are greater than assets.
c. you default on a loan.
d. a. and b.
e. a., b., and c.
Answer: d. a. and b.
◉ If the demand for labor is greater than the supply, then __________.
a. the price of labor is lower.
b. the price of labor is higher.
c. there are fewer jobs available.
d. a. and c.
e. b. and c.
Answer: b. the price of labor is higher.
,◉ The budget process begins with a thorough understanding of your
__________.
a. current financial condition.
b. financial statements.
c. desires and choices.
d. a. and b.
e. a., b., and c.
Answer: e. a., b., and c.
◉ Creating a budget involves __________.
a. projecting realistic behavior.
b. questioning your assumptions.
c. reviewing your financial records.
d. a. and b.
e. a., b., and c.
Answer: e. a., b., and c.
◉ Budgets can be prepared conservatively by __________.
a. underestimating costs.
, b. underestimating earnings.
c. overestimating goals.
d. overestimating results.
e. reconciling behaviors and goals.
Answer: b. underestimating earnings.
◉ Examples of recurring incomes are __________.
a. wages or salary.
b. interest or dividends.
c. lottery winnings.
d. a. and b.
e. a., b., and c.
Answer: d. a. and b.
◉ Examples of non-recurring expenditures are __________.
a. windfalls.
b. loan repayments.
c. automatic deposits.
d. taxes.
e. window replacements.
