ECONOMICS (CBSE/UGC NET)

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: -Typically, they do not change, and you pay the same amount for these expenses every month. For example, lease agreements, mortgage payments, and car insurance generally have contracts with set payment amounts that do not vary from month to month. Your payments would only change if the terms of the contract changed.

Detailed explanation-3: -In personal finance, flexible expenses are costs that are easily changed, reduced, or eliminated. For example, entertainment and clothing are flexible expenses. Even necessary expenses, such as groceries, can be considered flexible because the consumer adjusts the amount spent.

Detailed explanation-4: -The Budget Process These two phases together amount to the President’s budget formulation. A third phase is the Congressional appropriations cycle, and the fourth and final phase is the execution of the budget by the agencies starting October 1, the beginning of the fiscal year.