Chapter Based Questions: What is Expenses ? | Introduction to Financial Markets for Class 9 PDF Download

Q.1. Choose the correct answer.

(i) The money you spend on your needs and wants may be termed as_______.
(a) budgets
(b) incomes
(c) expenses 

Correct Answer is Option (c)

(ii) A set amount or exact amount which is incurred every time not depending on the usage or consumption is called a s __________ . 
(a) Fixed expenses
(b) Variable expenses
(c) Cash management 

Correct Answer is Option (a)

(iii) In a budget table, under fixed expenses ___________ should be first item which will help us to save money.
(a) Paying loans
(b) Paying rent
(c) Pay yourself first 

Correct Answer is Option (c)

(iv) Payment of gas bill based on the usage is an example o f _________ .
(a) Fixed expenses
(b) Variable expenses
(c) Income generating expenses 

Correct Answer is Option (c)

(v) ______________is extremely important to meet our goals.
(a) Saving
(b) Expense
(c) Loan repayment

Correct Answer is Option (c)

Q.2. Fill in the blanks.

(i) Expenses can be classified in to two categories namely______ and ______.
(ii) ______ helps us to use our money for our needs and wants, and achieve our goals.
(iii) Budget has two main parts namely ______ and ______.
(iv) _______ is a simple trick to grow our money and become wealthy.
(v)  ______ minus ______ is known as money left over for future needs.

(i) Fixed and Variable
(ii) Budget
(iii)  Income and expenses
(iv) Saving
(v) Income minus expenses

Q.3. Match the following.

(i) Expenses - Setting aside money
(ii) Fixed expenses - handling money coming in and going out
(iii) Variable expenses - no change in total amount
(iv) Cash management - money going out
(v) Savings - change in amount

(i) Expenses - Money going out
(ii) Fixed expenses - No change in total amount
(iii) Variable expenses - Change in amount
(iv) Cash management - Handling money coming in and going out
(v) Savings - Setting aside money

Q.4. True or false.

(i) Variable expenses can change due to some reasons like usage, consumption etc.
(ii) Budget is one of the best tools to manage our money.
(iii) ‘Pay yourself first’ means spending money for our present needs.
(iv) The more we save, the more money we have, to meet our goals in life.
(v) Cash management is handling of ‘money coming in’ only.

(i) True
(ii) True
(iii) False
(iv) True
(v) False

Q.5. Answer the following briefly

1. What do you mean by expenses?

Ans: Expenses refer to the money spent on various needs and wants. They represent the outflow of money to pay for goods, services, and other financial obligations. Expenses can be categorized into fixed expenses, which do not vary, and variable expenses, which can change based on usage or consumption.

2. Write a short note on Fixed expenses.

Ans: Fixed expenses are costs that remain constant regardless of usage or consumption. These are regular and predictable expenses, such as rent, mortgage payments, insurance premiums, and loan repayments. Fixed expenses do not fluctuate over time and must be paid regularly, making them easier to budget for.

3. What is meant by variable expenses? Give an example.

Ans: Variable expenses are costs that can fluctuate based on usage or consumption. These expenses are not fixed and can change from month to month. Examples of variable expenses include utility bills, groceries, entertainment, and dining out. For instance, the electricity bill can vary depending on the amount of electricity used in a particular month.