7
QuizMultiple Choice

Case Study: Personal Financial Planning — Quiz

Question 7 • Personal Finance

What is the most acceptable and easy way to revise a budget to allow for the purchase of a new couch?

Answer
A
Cancel renters' insurance.
B
Cook dinners at home instead of going out to eat.
C
Skip a car payment for a few months.
D
Advertise for a roommate to reduce rent.

Explanation

Cooking dinner at home instead of eating out is an easy, reasonable way to reduce discretionary spending and set aside money for a couch. Getting a roommate or changing housing arrangements is a much bigger change, while skipping a car payment or canceling renters’ insurance could create serious financial risks.

AI-written and checked against the verified answer.

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