Home > Basics > Beginner
Basics Beginner: Financing a Major Purchase

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
A major purchase is a _______ expense.
Choose wisely. There is only one correct answer.
Variable. It is variable because you dont normally buy it on a regular basis.
2.
The first step in financing a major purchase is to ________.
Choose wisely. There is only one correct answer.
Establish a household budget. That way, you can see how and where the planned purchase can be fit into your overall financial picture.
3.
Most experts recommend that an emergency fund have how many months worth of living expenses in it?
Choose wisely. There is only one correct answer.
Three to six. This is just a recommendation, however.
4.
One advantage of using a home equity line of credit to finance a major purchase is that the interest paid may be tax-deductible.
Choose wisely. There is only one correct answer.
True. Check the details to be sure, but tax deductibility is common.
5.
If you want to save for a big purchase over the long term, which of the following options is likely to fluctuate in value the least?
Choose wisely. There is only one correct answer.
Certificates of deposit. As a general rule, certificates of deposit are the least likely of these to fluctuate in value.