Question

1. which of the following is an example of a fixed expense?

a) groceries
b) entertainment
c) rent
d) clothing

1. what is the purpose of insurance?

a) to protect against financial loss
b) to increase your credit score
c) to invest in real estate
d) to pay off debts

Explanation:

Question 9

A fixed expense is a cost that remains constant over a period, regardless of usage or consumption. Groceries (a) and clothing (d) are variable as their amounts change with purchases. Entertainment (b) is also variable based on choices. Rent (c) is typically a set amount paid regularly, so it's fixed.

Insurance is designed to provide financial protection. It doesn't increase credit scores (b), invest in real estate (c), or pay off debts (d). Its main purpose is to cover losses from unforeseen events, so it protects against financial loss (a).

Answer:

c) Rent

Question 10