n NISM Certifications
XVII NISM Series XVII
Medium

_______ is considered a discretionary expense for a household.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Debt repayment

  2. B

    Salary to housemaid

  3. C

    Transportation expense

  4. Entertainment expense

    Correct answer

Why this is the answer

Entertainment expenses are discretionary, meaning they can be reduced or eliminated to optimize savings, unlike fixed expenses such as debt repayment or salaries.

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