Which statements describe a fixed expense? Select the two that apply.

Question

options:

Frankie pays $10 a month for a music streaming service
Frankie pays $10 a month for a music streaming service

Jorge earns $5 every week in allowance whether he does his chores or not
Jorge earns $5 every week in allowance whether he does his chores or not

Peter’s electricity bill varies each month based on how much power he uses
Peter’s electricity bill varies each month based on how much power he uses

Sasha rents her condo for $800 every month

Answer 1

The two statements that describe a fixed expense are:

1. Frankie pays $10 a month for a music streaming service.
2. Sasha rents her condo for $800 every month.

Fixed expenses are regular, predictable costs that do not change from month to month. In contrast, an allowance may vary based on chores (making Jorge’s not fixed), and an electricity bill that varies each month is not a fixed expense.