Plotus Personal Finance Basics Quiz

Inflation is

• Increase in purchasing value of money
• Fall in purchasing value of money
• General fall in prices
• General fall in interest rates

An optimum level of saving is

• 10% of your income
• 45% of your income
• 30% of your income
• 23% of your income

Your liabilities should not be more than

• 10% of your income
• 40% of your income
• 55% of your income
• 23% of your income

Budgeting is a futile exercise for a country

• true
• false

Income is

• The money that you receive for applying your skills
• Salary / Fee you receive
• By product of a service / sale
• All of these

Passive Income is

• Gift you receive from others
• Income generated from assets
• Loans given by banks
• Money received by gambling

Wealth is accumulated by

• Investing more money
• Inheriting money
• Investing in areas of huge returns
• Staying long in right assets

An Emergency Fund is

• Equal to 6 times monthly income
• Equal to 6 times monthly expenses
• The credit limit available on your credit card
• Equal to 3 times your monthly income

A medical Insurance is

• taken to enjoy income tax benefits
• taken to protect from unforeseen medical expenses
• a useless expense that can be invested, rather in stocks
• not required for me, as my employer provides adequate cover

Life Insurance is

• a saving
• an investment
• a tax saving investment
• a protection for my family