Personal Finance Managment

What is the correct formula for personal finance management?

• income-expenses=savings

• expenses=income + borrowing

• income-savings=expenses

• income-savings=net income

which one is a "want"

• Food

• Shelter

• Dress

• villa

Which one is the high-risk investment?

• Savings Account

• Stock market

• Real estate

• Fixed deposit

What does the term "compounding" refer to about investments?

• Adding money to an investment regularly

• Earning interest on both the initial amount and the accumulated interest

• Reducing the amount of debt owed

• Selling an investment at a profit

What is inflation?

• Inflation refers to the total amount of money in circulation without any price changes.
• Inflation is the increase in prices and fall in the purchasing value of money.
• Inflation is the decrease in prices and increase in the purchasing value of money.
• Inflation is a measure of economic growth and productivity.

What is the purpose of a budget?

• To track expenses after they occur

• To restrict spending

• To allocate income and plan expenses

• To determine creditworthiness

What is the purpose of diversification in an investment portfolio?

• To minimize taxes

• To maximize returns

• To reduce risk

• To increase liquidity

Which of the following is an example of a fixed expense?

• Groceries

• Entertainment

• Mortgage payment

• Dining out

What is an annual fee on a credit card?

• A one-time fee to open the credit card account

• A fee charged every year for using the credit card

• A fee for late payment

• A fee for making cash advances

1. Which of the following factors does NOT impact your credit score?

• 1. Payment history

• 1. Length of credit history

• Signing as a gurantor

• 1. Age or marital status