Question

1. multiple - choice 1 point

an example of a variable expense is ___.
○ cable television charges
○ bus fare to school or work
○ insurance premiums
○ electric bills

1. multiple - choice 1 point

your net worth goes up when you ___.
○ spend more than you earn
○ pay off previous debts
○ borrow money to pay a deficit
○ withdraw money from your savings

1. multiple - choice 1 point

the first step in planning a budget is ___.
○ estimating income
○ setting financial goals
○ listing fixed expenses
○ budgeting for savings

1. multiple - choice 1 point

a good budget has all the following characteristics except ___.
○ inaccurability
○ flexibility
○ practicality
○ careful planning

1. multiple - choice 1 point

a savings option many employers offer is ___.
○ paying interest on employees savings
○ sending employees children through college
○ writing a check for employees savings account
○ setting paycheck deductions to employees retirement funds

Explanation:

1. Variable expenses change based on usage. Electric bills vary depending on electricity consumption, while cable television charges, insurance premiums are usually fixed, and bus fare is a fixed - per - trip cost.
2. Net worth is assets minus liabilities. Paying off previous debts reduces liabilities, increasing net worth. Spending more than you earn, borrowing to pay a deficit, and withdrawing from savings do not increase net worth.
3. The first step in planning a budget is setting financial goals as they guide income estimation, expense listing, and savings budgeting.
4. A good budget should be flexible, practical, and involve careful planning. Inaccessibility is not a characteristic of a good budget.
5. Many employers offer setting up paycheck deductions to employees' retirement funds as a savings option. Paying interest on employees' savings is not a common employer - offered savings option, sending employees' children through college is not a typical savings option, and writing a check to employees' savings account is not a common employer - offered savings method.

Answer:

1. electric bills
2. pay off previous debts
3. setting financial goals
4. inaccessibility
5. setting paycheck deductions to employees' retirement funds