H&R Block Budget Challenge Exam
Questions and Complete Solutions
Graded A+
Adjustable Rate Mortgage - Answer: An ARM is a loan that has a varying interest rate and payment
based on an adjustment period. This loan is also known as a variable rate mortgage.
Auto Insurance - Answer: Insurance to protect a car owner in the event of an accident or damage to a
vehicle.
Budget - Answer: A chart that documents how much money an individual earns and spends.
Cash Flow - Answer: Movement of the money you receive and the money you spend.
Certificate of Deposit - Answer: A savings alternative in which money is left on deposit for a stated
period of time to earn a specific rate of return.
City Income Tax - Answer: Tax for public services provided in the city (ex: sidewalks and city water
systems)
Credit - Answer: An arrangement to receive cash, goods, or services now and pay for them in the future.
Credit Score - Answer: A rating used by credit reporting companies to help lenders decide whether
and/or how much credit can be extended to a borrower. Your score can range from 300-850
Creditworthiness - Answer: a measure of your ability and willingness to repay a loan
Credit Card - Answer: A plastic card used to make purchases now and pay for them later.
Questions and Complete Solutions
Graded A+
Adjustable Rate Mortgage - Answer: An ARM is a loan that has a varying interest rate and payment
based on an adjustment period. This loan is also known as a variable rate mortgage.
Auto Insurance - Answer: Insurance to protect a car owner in the event of an accident or damage to a
vehicle.
Budget - Answer: A chart that documents how much money an individual earns and spends.
Cash Flow - Answer: Movement of the money you receive and the money you spend.
Certificate of Deposit - Answer: A savings alternative in which money is left on deposit for a stated
period of time to earn a specific rate of return.
City Income Tax - Answer: Tax for public services provided in the city (ex: sidewalks and city water
systems)
Credit - Answer: An arrangement to receive cash, goods, or services now and pay for them in the future.
Credit Score - Answer: A rating used by credit reporting companies to help lenders decide whether
and/or how much credit can be extended to a borrower. Your score can range from 300-850
Creditworthiness - Answer: a measure of your ability and willingness to repay a loan
Credit Card - Answer: A plastic card used to make purchases now and pay for them later.
