Personal finance II - JSS3 Business studies Past Questions and Answers - page 1
What does consumption refer to in personal finance?
Saving money
Spending money
Investing money
Borrowing money
How do individuals make consumption choices?
By maximizing their income
By minimizing their expenses
By maximizing their satisfaction with limited resources
By following trends
What is the scale of preference?
A ranking of wants or needs based on their importance
A ranking of income sources
A ranking of expenses
A ranking of savings goals
Why is understanding the scale of preference important in personal finance?
To increase income
To decrease expenses
To prioritize financial goals and decisions
To follow trends
What is the purpose of preparing an individual budget?
To increase spending
To decrease income
To track spending and manage finances
To ignore financial goals
What does a budget help individuals do?
Spend more money
Save less money
Track income and expenses
Ignore financial goals
How often is a budget typically prepared?
Daily
Weekly
Monthly
Annually
What are fixed costs in a budget?
Expenses that change frequently
Savings goals
Expenses that remain constant
Income sources
What are variable expenses in a budget?
Expenses that remain constant
Expenses that change frequently
Income sources
Savings goals
What is a budget deficit?
Spending less than income
Spending more than income
Saving more than income
Saving less than income