Question

er emeIf your essential expenses plus your non-essential expenses are greater than your income, then your financial reserves are growing larger. Please select the best answer from the choices provided T F

Answer 1

No, the statement is False. If your essential expenses plus your non-essential expenses are greater than your income, then your financial reserves are not growing larger.

Step-by-step explanation:

No, the statement is False. If your essential expenses plus your non-essential expenses are greater than your income, then your financial reserves are not growing larger. It means that you are spending more than you are earning, which leads to a decline in your financial reserves.

To illustrate this, let's say your income is $1000 and your essential expenses (such as rent, utilities, groceries) are $700, while your non-essential expenses (such as eating out, entertainment) are $400.

The total expenses ($700 + $400 = $1100) are greater than your income, resulting in a deficit of $100.

This deficit reduces your financial reserves instead of growing them.