Financial Literacy: Session 3 Quiz

What is budgeting?

• Having money left over at the end of the month

• A plan made in advance regarding the expenditure of money based on available income

• The ability to pay your bills on time

• Having enough money to go out to eat

Why do we need to have a budget? (Select all applicable)

• To prepare for unpredictable events

• To become rich

• To have control over our finances

• To be prepared for the future

What is the basic principle of good budgeting?

• Income > Expenses

• Expenses > Income

• Expenses = Income

• None

In a deficit budget...

• Revenues are equal to expenses

• Revenues exceed expenses

• Expenses exceed revenues

• There is no relationship between revenues and expenses

How should one's income be distributed according to the 50/30/20 budget rule?

• 50% on wants, 30% on necessities, 20% on savings

• 50% on savings, 30% on savings, 20% on necessities

• 50% on necessities, 30% on savings, 20% on wants

• 50% on necessities, 30% on wants, 20% on savings

If an individual has a net income of Rs. 8000, how much should they ideally budget for their wants?

• 8000

• 4000

• 1600

• 2400

What should you base your budget on?

• Income

• Deductions

• Net income

• Expenses

Which of the following are variable expenses? (Select all applicable)

• Internet

• Entertainment

• Personal care

• Medical expenses

Which of the following are fixed expenses? (Select all applicable)

• Rent

• Loan payment

• Groceries

• Insurance expenses

Saving for a new phone would be a...

• Short-term goal

• Mid-term goal

• Long term goal

• None of the above