15 Rules of Money

What is the biggest differentiator between the rich and the poor according to the text?

• Access to education

• Financial literacy

• Inheritance

• Networking opportunities

According to the text, what is the 'Rule of 72'?

• A method to estimate the doubling time of an investment.

• A rule for calculating interest rates.

• A guideline for financial planning.

• A principle for risk management.

If you are making 10% interest, how many years will it take for your investment to double according to the Rule of 72?

• 5 years

• 7.2 years

• 10 years

• 12 years

According to the passage, what are the three steps to creating perpetual wealth?

• Invest wisely, save consistently, and diversify assets.

• Spend lavishly, avoid savings, and focus on one asset.

• Ignore investments, save sporadically, and diversify liabilities.

• Invest in high-risk ventures, save occasionally, and concentrate on a single asset.

What is the 70/30 rule mentioned in the text?

• It is a guideline for balancing work and leisure time.

• It is a financial rule for saving and spending.

• It is a dietary rule for healthy eating.

• It is a rule for maintaining a work-life balance.

What is the purpose of putting money into an investment account according to the text?

• To grow wealth over time

• To keep money safe from theft

• To avoid paying taxes

• To have immediate access to cash

What is the 30/30/30/10 rule used for according to the text?

• It is a guideline for financial planning.

• It is a rule for time management.

• It is a principle for healthy eating.

• It is a strategy for effective communication.

Which of the following is NOT mentioned as a type of asset in the 30/30/30/10 Rule?

• Cash equivalents

• Securities

• Real estate

• Cryptocurrency

The role of a fiduciary in managing your investments is to:

• Make investment decisions based on personal gain

• Act in the best interest of the client

• Ignore the client's financial goals

• Prioritize high-risk investments

According to the passage, diversification is considered tough because:

• It requires a lot of resources.

• It involves entering unfamiliar markets.

• It demands extensive research.

• It is not supported by data.