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[A251] Individual Practice 2 (Quiz 2) Personal Finance Group C

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following best describes tax planning?

a)

Legally arranging financial affairs to minimise tax

b)

Hiding income from tax authorities

c)

Fabricating expense records

d)

Avoiding tax filing

2.

Which of the following actions is considered tax evasion?

a)

Claiming education fee relief

b)

Timing income to a later year

c)

Maximising lifestyle relief

d)

Under-reporting business income

3.

Which income source is taxable under Malaysian income tax?

a)

Government pension

b)

Scholarship from MARA

c)

Employer EPF contribution (≤19%)

d)

Employment salary

4.

What is chargeable income?

a)

Income after tax rebates

b)

Total income minus exemptions and reliefs

c)

Total income before deductions

d)

Income subject to zakat only

5.

Which of the following is classified as tax-exempt income?

a)

Rental income

b)

Business profit

c)

Employer EPF contribution up to 19%

d)

Overtime pay

6.

What is the amount of personal relief for an individual resident taxpayer?

a)

RM4,000

b)

RM7,000

c)

RM10,000

d)

RM9,000

7.

Which relief encourages retirement savings beyond EPF?

a)

Lifestyle relief

b)

Private Retirement Scheme (PRS) relief

c)

Child relief

d)

Education fee relief

8.

How does a tax rebate differ from a tax relief?

a)

Rebate directly reduces tax payable

b)

Rebate reduces chargeable income

c)

Rebate applies before relief

d)

Rebate is only for businesses

9.

Zakat paid during the basis year is treated as:

a)

Tax exemption

b)

Tax relief

c)

Tax deduction

d)

Tax rebate

10.

Which holding period gives 0% RPGT for Malaysian individuals?

a)

4th year

b)

5th year

c)

Within 3 years

d)

6th year and beyond

11.

In financial planning, risk refers to:

a)

Guaranteed financial loss

b)

Opportunity for profit

c)

Investment volatility only

d)

Uncertainty about possible loss

12.

A loss exposure refers to:

a)

The loss already suffered

b)

A situation that may cause loss in the future

c)

Insurance compensation

d)

Premium paid

13.

Which of the following is a peril?

a)

Faulty wiring

b)

Driving while tired

c)

Leaving doors unlocked

d)

Fire destroying a house

14.

Deliberately committing arson to claim insurance is an example of:

a)

Moral hazard

b)

Physical hazard

c)

Morale hazard

d)

Speculative risk

15.

Which type of risk affects large groups simultaneously and is often uninsurable?

a)

Individual risk

b)

Fundamental risk

c)

Pure risk

d)

Static risk

16.

Which risk involves only loss or no loss, with no chance of gain?

a)

Speculative risk

b)

Dynamic risk

c)

Pure risk

d)

Investment risk

17.

Purchasing life insurance mainly represents which risk management technique?

a)

Avoid risk

b)

Reduce risk

c)

Retain risk

d)

Transfer risk

18.

Which risk behaviour prefers certainty and is willing to pay to transfer risk?

a)

Risk-averse

b)

Risk-neutral

c)

Risk-seeking

d)

Risk-tolerant

19.

Which type of insurance compensates for non-life losses?

a)

Life insurance

b)

Family takaful

c)

Education takaful

d)

General insurance

20.

Which principle distinguishes takaful from conventional insurance?

a)

Guaranteed investment return

b)

Interest-based investment

c)

Risk transfer to insurer

d)

Risk sharing and mutual cooperation