6
QuizMultiple Choice

Evaluating and Adjusting a Budget — Quiz

Question 6 • Advanced Financial Algebra

If a budget does not account for irregular but necessary expenses, like yearly car registration fees, what might happen?

Answer
A
There will never be a shortage of money.
B
The emergency fund will automatically increase.
C
Debt could increase when these expenses occur.
D
There will always be enough money left over for savings.

Explanation

If a budget leaves out necessary expenses that come up only occasionally, the money may not be set aside when they are due. The person may need to borrow or use credit to pay the yearly car registration fee, so debt could increase. The correct choice is “Debt could increase when these expenses occur.”

AI-written and checked against the verified answer.

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