Financial Literacy Tips by Alexander B. Raquepo

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Questions and Answers

According to the tips, what is the primary benefit of investing in cooperatives?

  • It offers higher returns than traditional investments.
  • It diversifies your investment portfolio.
  • It provides tax-free earnings and allows participation in governance. (correct)
  • It guarantees a steady stream of income.

Which of the following is recommended for building up share capital in a cooperative?

  • Regularly add small amounts over time. (correct)
  • Invest only when you have a significant amount saved.
  • Take out a loan to invest a large amount.
  • Make a one-time lump sum investment.

What is the advice regarding borrowing or availing loans?

  • Borrow for any purpose, as long as you can afford the payments.
  • Avoid borrowing or taking out loans entirely.
  • Borrow for personal expenses, such as vacations or luxury items.
  • Borrow only for productive and entrepreneurial purposes. (correct)

Which of the following is NOT recommended in the tips?

<p>Spending more than you can earn and living on credit. (D)</p> Signup and view all the answers

What is the purpose of making an inventory of your monies and investments, according to the tips?

<p>To compare and analyze your financial situation over time. (C)</p> Signup and view all the answers

What is the concept of 'living on interest' (LOI) as mentioned in the tips?

<p>Spending only the interest earned on investments while keeping the principal intact. (C)</p> Signup and view all the answers

According to the tips, what is the significance of donating and sharing with communities and churches?

<p>It is an indicator that you are financially capable and independent. (A)</p> Signup and view all the answers

What is the reason given for not gambling, according to the tips?

<p>No specific reason is provided; the advice is simply 'do not gamble'. (B)</p> Signup and view all the answers

Which of the following is NOT mentioned as a recommended financial practice in the tips?

<p>Investing in real estate and rental properties. (D)</p> Signup and view all the answers

Borrowing or availing of loans is strictly recommended for any purpose, according to the tips.

<p>False (B)</p> Signup and view all the answers

Investing in various forms, types, windows, and programs of your credit union is recommended in the tips.

<p>True (A)</p> Signup and view all the answers

Spending more than you can earn is considered simple mathematics and a safe financial practice, according to the tips.

<p>False (B)</p> Signup and view all the answers

Donating and sharing with communities and churches is considered a good luck charm and an indicator of financial capability, according to the tips.

<p>True (A)</p> Signup and view all the answers

The tips recommend that you should always gamble, as long as you are not pressured by peers or envious of your neighbor's winnings.

<p>False (B)</p> Signup and view all the answers

According to the tips, one can become rich overnight like a big tree from a small seed.

<p>False (B)</p> Signup and view all the answers

The tips recommend that individuals should spend 20% of their earnings and save the remaining 80%.

<p>False (B)</p> Signup and view all the answers

The tips suggest that individuals should invest in business to help their money multiply.

<p>True (A)</p> Signup and view all the answers

The tips advise against being lured by easy money and big dividend schemes when investing.

<p>True (A)</p> Signup and view all the answers

The tips do not mention investing in real estate as a way to ensure a future income.

<p>False (B)</p> Signup and view all the answers

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