QuizFi

1. Budgeting

What is the primary purpose of creating a budget?

• A. To save money for emergencies

• B. To track and manage income and

• C. To avoid paying taxes

• D. To reduce income

2. Savings Which of the following is a good rule of thumb for saving money?

• A. Spend first, save what's left

• • B. Save only when you receive a bonus or gift

• • C. Borrow money to save it

• D. Save 20% of your income and adjust as needed

3. 3. What is a budget?
   

• a) A type of bank account
  

• b) A plan for managing income and expenses
  

• c) A loan from the government
  

• d) A savings account for emergencies

4. 4. What is the main purpose of saving money?

• a) To avoid paying taxes
  

• b) To spend more later

• c) To prepare for future needs or emergencies

• d) To avoid using a credit card
  

5. 5. What is the difference between a debit card and a credit card?

• a) Debit cards allow you to spend money you don’t have, while credit cards don’t.
  

• b) Debit cards use your bank savings, while credit cards let you borrow money.

• c) Debit cards charge more interest than credit cards.

• d) Debit cards are safer to use online.

6. 6. Why is it important to understand financial literacy?

• a) To rely on others for financial advice

• b) To manage your money effectively

• c) To increase your debts

• d) To learn how to avoid taxes

7. Emergency Fund What is an emergency fund?

• A. A fund used for regular monthly expenses

• D. A fund for vacation planning

• C. A type of investment account

• B. A savings account specifically for unexpected expenses

8. Financial Goals Why is it important to set financial goals?

• C. To avoid making any financial decisions

• B. To have a clear direction for saving and spending

• A. To spend money without a plan

• D. To increase unnecessary expenses

9. Interest Rates What is the effect of high interest rates on borrowing?

• C. It makes borrowing more expensive

• A. It makes borrowing cheaper

• D. It encourages more borrowing

• B. It has no effect on borrowing

10. 10. What is the importance of tracking your expenses?

• b) To increase your spending
  

• a) To know where your money is going
  

• c) To avoid budgeting
  

• d) To make impulsive purchases