ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUDGETING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

When looking at the model budget, what are 2 of the biggest budget categories families have?

A	food
B	entertainment
C	personal care
D	housing

Explanation:

Detailed explanation-1: -The 2 main parts of a Government budget are revenue and expenditure of the Government. The Government gets its major share of revenue from Goods and Services Tax (GST), Income tax, corporation tax, customs and excise duties.

Detailed explanation-2: -Housing (25-35 percent) This includes everything from rent or mortgage payments to property taxes, HOA dues, and home maintenance costs. For most budgeters, this category is by far the biggest.

Detailed explanation-3: -Total your monthly income and monthly expenses. This is the step where you really get into how to budget your money. Tally your monthly income and monthly expenses. Compare those two columns. You should have more income than expenses.

Detailed explanation-4: -Housing (renting or mortgage payments) Housing, whether for rent or mortgage payments, is going to take up the largest percentage of your income.

There is 1 question to complete.