44
QuizMultiple Choice

N/A — Exam

Question 44 • Financial Math

How can an increase in household size affect a personal budget in the long term?

Answer
A
It may increase housing expenses.
B
It may decrease overall income.
C
It may eliminate the need for an emergency fund.
D
It may reduce grocery expenses.

Explanation

A larger household may need more space, which can lead to higher rent, a larger mortgage, or increased utility costs over time. Therefore, the correct choice is “It may increase housing expenses.” A larger household does not eliminate the need for an emergency fund, and grocery expenses are more likely to rise than fall.

AI-written and checked against the verified answer.

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