ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Flexible expenses
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Fixed expenses
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Gross expenses
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Net expenses
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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: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
Detailed explanation-3: -Key Takeaways A fixed expense is a bill that doesn’t change from month to month. Your monthly mortgage payment, insurance premiums, and childcare costs are examples of fixed expenses.
Detailed explanation-4: -Fixed-Cost Insurance-a traditional insurance program where the insured is charged a fixed premium rate. The rate is tied to a measure of exposure, such as payroll or sales, but is not loss sensitive.