IPF Unit 1

Personal finance is important for

• worse mental health.

• making poor decisions.

• financial independence.

• applying credit cards.

Personal finance involves managing individual's money, pertaining to individual's or _________'s earnings, savings and expenses.

Which one of the following is NOT a key concept of personal finance?

• Budgeting.

• Saving.

• Financial protection.

• Education.

Any money or service that an individual owes to another individual or company due to the individual’s financial obligation is

• net worth.

• asset.

• liabilities.

• loan.

An example of asset is

• car loans.

• property.

• income tax.

• debt.

An example of cash outflow is

• receiving salary.

• receiving a loan.

• paying expenses.

• getting a payout.

A ________ net cash flow indicates that the individual earned more than the individual’s spending and the individual has some money left over from that period.

An individual’s net worth can be calculated by which formula?

• Assets - Liabilities

• Assets + Liabilities

• Assets / Liabilities

• Assets x Liabilities

Formula for net cash flow is

• cash inflow x cash outflow

• cash outflow / cash inflow

• cash inflow + cash outflow

• cash inflow - cash outflow

Effective cash flow management helps in avoiding

• financial difficulties.

• more savings.

• medical bills.

• bad weather.