Wealth Building Quiz

What is the main goal of wealth building?

• To spend money quickly

• To achieve financial security and independence

• To avoid all investments

• To accumulate debt

What is the recommended amount for an emergency fund?

• 1-2 months of living expenses

• 3-6 months of living expenses

• 7-9 months of living expenses

• 10-12 months of living expenses

What does a zero-based budget ensure?

• Income minus expenses equals zero

• Income is greater than expenses

• Expenses are greater than income

• Savings are not necessary

Which investment option is more stable but offers lower returns?

• Stocks

• Bonds

• Real estate

• Savings accounts

Which investment option can be profitable but requires large capital?

• Stocks

• Bonds

• Savings accounts

• Real estate

What type of return is associated with low-risk investments?

• High return

• Moderate return

• Low return

• No return

What is the "magic penny" concept related to?

• Wealth building

• Compound interest

• Emergency funds

• Sinking funds

What is the formula for the Rule of 72?

• 72 + Annual Interest Rate = Years to Double

• 72 - Annual Interest Rate = Years to Double

• 72 ÷ Annual Interest Rate = Years to Double

• 72 × Annual Interest Rate = Years to Double

What is the benefit of using sinking funds?

• Prevents the need to dip into emergency savings

• Increases monthly expenses

• Reduces income

• Increases debt

How does avoiding unnecessary debt help?

• Maintains financial health

• Increases spending

• Reduces savings

• Increases interest rates