Financial Health & Well-being Quiz

A debit card is linked to a bank account and allows the cardholder to pay for goods and services at both physical and online stores, as well as withdraw cash from branches or ATMs.

A debit card allows you to spend funds from your bank account, while a credit card allows you to spend from a pre-approved line of credit. When you use a debit card, the money is deducted from your bank account immediately, while a credit card gives you a credit limit and the charges are added to the balance to be paid later, usually with interest.

<p>True</p> Signup and view all the answers

<p>All of the above.</p> Signup and view all the answers

<p>Insurance companies provide financial protection against a wide range of risks, such as death, illness, property damage, and liability. They offer policies that provide a payout in the event of a covered event, helping to minimize financial loss and provide peace of mind.</p> Signup and view all the answers

<p>Financial inclusion refers to the process of ensuring that all individuals and communities have access to affordable and appropriate financial products and services, such as bank accounts, savings, loans, and insurance. This aims to empower individuals, particularly those in underserved communities, to participate in and benefit from the financial system.</p> Signup and view all the answers

<p>A credit score is a numerical representation of an individual's creditworthiness, based on their credit history. It helps lenders assess the borrower's ability to repay their debts and determines the interest rates and loan terms offered.</p> Signup and view all the answers

<p>To manage finances effectively to reach financial goals and overcome financial obstacles.</p> Signup and view all the answers

<p>A budget helps you take control of your finances by tracking your income and expenses, allowing you to make informed decisions about your spending, saving, and investing. It helps you stay on track to achieve your financial goals, and it can prevent financial stress and debt.</p> Signup and view all the answers

<p>Having enough money to cover your basic needs and meet unexpected expenses.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>Real estate can provide a regular income stream through rent and appreciation in its value over time.</p> Signup and view all the answers

<p>Term insurance provides financial protection for a specific period, typically in case of death, while endowment insurance offers both death benefits and a maturity payout, making it a savings and investment plan.</p> Signup and view all the answers

<p>Mutual funds offer investors the opportunity to diversify their investments by pooling money from multiple investors and investing in a variety of assets, such as stocks and bonds. This helps reduce risk and potentially increase returns.</p> Signup and view all the answers

<p>Certain insurance products offer tax advantages, such as deductions on premiums paid or exemptions on the maturity payout. This can help individuals reduce their overall tax liability and increase their after-tax returns.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>The three major types of investment risks are: market risk, credit risk, and liquidity risk.</p> Signup and view all the answers

<p>The six key steps of financial planning are: 1. Evaluating your current financial situation, 2. Determining your risk profile, 3. Setting financial goals, 4. Creating a contingency plan, 5. Implementing your financial plan, and 6. Reviewing and revising your financial plan.</p> Signup and view all the answers

<p>All of the above.</p> Signup and view all the answers