#1
Which of the following is a key principle of personal finance?
Save and invest regularly
ExplanationRegular saving and investing are crucial for financial stability and growth.
#2
What does the acronym 'ROI' stand for in finance?
Return on Investment
ExplanationROI measures the return gained from an investment relative to its cost.
#3
What is the purpose of an emergency fund in personal finance?
To cover unexpected expenses and financial emergencies
ExplanationAn emergency fund provides financial security by covering unexpected expenses and emergencies.
#4
What is the primary function of a budget in personal finance?
To track income and expenses
ExplanationA budget serves to monitor and manage income and expenses, providing a clear financial overview.
#5
What is the purpose of a 'savings account' in personal finance?
To store money for short-term goals and emergencies
ExplanationA savings account is designed to hold money for short-term goals and unexpected financial needs.
#6
What is the recommended percentage of your income to save for emergencies?
20%
ExplanationSaving 20% of income for emergencies ensures a financial safety net.
#7
What does the term 'compound interest' refer to?
Interest calculated on the initial principal and also on the accumulated interest of previous periods
ExplanationCompound interest involves the growth of both the initial investment and its accumulated interest over time.
#8
What is the 'Pomodoro Technique' commonly used for?
Time management
ExplanationThe Pomodoro Technique is a time management method to enhance productivity by using focused work intervals.
#9
What does the '50/30/20 rule' refer to in personal finance?
A budgeting rule suggesting 50% of income for needs, 30% for wants, and 20% for savings and debt repayment
ExplanationThe 50/30/20 rule guides budgeting by allocating percentages to needs, wants, and savings/debt repayment.
#10
What is the primary purpose of a 'SWOT analysis' in personal finance?
To assess personal strengths and weaknesses
ExplanationA SWOT analysis evaluates individual strengths, weaknesses, opportunities, and threats in personal finance planning.
#11
Which of the following is NOT a common method for reducing procrastination?
Multi-tasking
ExplanationMulti-tasking is often counterproductive and not an effective strategy for overcoming procrastination.