Title: QUIZ: Budgeting 101
Course: Andria Testing FRE2 > Section: Budgeting 101

Q: What is the primary purpose of creating a budget?
- To track only your savings
- To plan for managing income, spending, and saving
- To avoid paying taxes
- To increase your gross income
A: To plan for managing income, spending, and saving

Q: What is net income?
- Income before taxes and deductions
- Total expenses in a month
- Income after taxes and deductions
- Money earned from investments
A: Income after taxes and deductions

Q: Which of the following is considered a fixed expense?
- Monthly rent
- Grocery bills
- Entertainment costs
- Gasoline expenses
A: Monthly rent

Q: What are variable expenses?
- Expenses that occur once a year
- Expenses that are the same every month
- Expenses that change in amount and frequency
- Expenses that are optional
A: Expenses that change in amount and frequency

Q: How can you estimate variable expenses to make them more predictable?
- Ignore them in your budget
- Use credit cards for all purchases
- Track spending over time to find an average
- Only spend cash
A: Track spending over time to find an average

Q: What are periodic expenses?
- Daily coffee purchases
- Monthly subscription services
- Semi-annual car insurance premiums
- Weekly grocery shopping
A: Semi-annual car insurance premiums

Q: Why is it important to include savings in your budget?
- To ensure you can afford luxury items
- To prepare for unexpected expenses and future goals
- To increase your taxable income
- To spend more on entertainment
A: To prepare for unexpected expenses and future goals

Q: What did Alex do to prepare for his semi-annual car insurance payment?
- Ignored it until the bill arrived
- Took out a loan to pay it
- Saved a portion each month
- Canceled his insurance
A: Saved a portion each month

Q: What is a key benefit Alex experienced after creating a budget?
- Increased his gross income
- Felt more in control and less stressed about finances
- Spent more on hobbies without concern
- Eliminated all expenses
A: Felt more in control and less stressed about finances