Question

1. fixed expenses are expenses that typically change from month to month such as food, clothing, and utilities. true false
2. higher deductibles on insurance will lower your premiums but increase your risk of out - of - pocket expenses. true false
3. comparing expenses to a monthly budget can help ensure a budget is being followed and highlight expenses that need to be added to the budget. true false
4. budgets should include insurance protection to cover unexpected expenses from loss or damage to a vehicle, home, health or life. true false
5. a major cost associated with using credit is the interest - the longer money is borrowed, the more it costs. true false
6. if a borrower cannot pay on a secured loan, the creditor may be able to take the collateral, such as a car, motorcycle, or a home. true false
7. public resources, like the federal trade commissions website, can provide information on how consumers can dispute credit card charges. true false
8. renting or leasing a house is not considered an alternative to borrowing on credit. true false
9. only a few states have laws and public or private agencies, that can educate consumers about their financial rights. true false

Explanation:

1. Fixed expenses are stable, not variable like food, clothing, and utilities.
2. Higher deductibles mean lower premiums but more out - of - pocket risk.
3. Comparing expenses to budget helps with budget compliance and identifying missing items.
4. Insurance is important for covering unexpected losses in various aspects of life.
5. Interest is a major cost of credit, and longer borrowing leads to more interest.
6. In a secured loan, the creditor can take collateral if the borrower defaults.
7. The Federal Trade Commission's website offers consumer credit - related information.
8. Renting/leasing can be an alternative to borrowing for housing.
9. Many states have laws and agencies for consumer financial education.

Answer:

1. False
2. True
3. True
4. True
5. True
6. True
7. True
8. False
9. False