BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Expense
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Variable Expense
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Discretionary Expense
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Income
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Detailed explanation-1: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).
Detailed explanation-2: -What Are Fixed Expenses? Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis.
Detailed explanation-3: -Variable costs that can change from month to month, such as entertainment, groceries, and clothing, should take up 30% of your income. Savings should take up 20% of your income.
Detailed explanation-4: -Examples of Variable Expenses Some examples of variable costs include: Food costs, such as groceries and dining out. Clothing. Gasoline.