CLEAN : Isaac Herzog prays at the Western Wall in Jerusalem

Why are budgets considered essential in financial planning?

• They are only necessary for personal finance.

• They eliminate all financial risks.

• They are only useful for large corporations.

• They help in tracking expenses and income.

Which type of budget is typically used for long-term financial planning?

• Operational budget

• Capital budget

• Cash flow budget

• Static budget

What is a key benefit of using a cash flow budget?

• It helps in predicting future profits.

• It tracks the inflow and outflow of cash.

• It is used for setting long-term goals.

• It is only applicable to businesses.

What is the first step in creating an effective budget?

• Cutting unnecessary costs

• Tracking expenses

• Investing in stocks

• Setting financial goals

Which of the following is a practical tip for managing a budget?

• Stick to the budget without any changes.

• Adjust the budget as needed.

• Ignore unexpected expenses.

• Avoid reviewing the budget regularly.