29 Questions
What is the monthly contribution in Kshs for a salary bracket of 20,000 to 24,999?
750
What is the minimum salary bracket in Kshs for a monthly contribution of 1,200?
60,000
What is included in taxable employment income?
All cash payments and the value of non-cash benefits exceeding Ksh 3,000 per month
What is the effective date for taxing excess mileage reimbursement to employees?
1st July 2023
Who is required to deduct tax from employment income and remit it to the Kenya Revenue Authority?
Employers
What is the purpose of the PAYE system?
To deduct tax from employment income and remit it to the Kenya Revenue Authority
What is the primary purpose of personal financial planning?
To reduce financial uncertainties and worries
What is a key benefit of having a personal financial plan?
To boost control of financial affairs
What is one of the purposes of investing in personal finance?
To select securities for income and long-term growth
What is a key aspect of managing risk in personal finance?
Adequate insurance coverage for risks
What is a benefit of having a personal financial plan in terms of relationships?
It improves personal social relationships
What is a key outcome of personal financial planning?
Financial independence
What is the primary purpose of creating a budget?
To project realistic future financial behavior
What type of expenditures may include capital improvements?
Nonrecurring expenditures
What is an advantage of having a budget?
It helps reduce financial distress
What is a benefit of budgeting in relation to financial goals?
It helps attain financial goals
What type of incomes are earnings from wages, interest, or dividends?
Recurring incomes
What is a key aspect of budgeting in relation to time?
Determining a frequency and time period for budgeting
What is the primary goal of debt management?
To meet debt obligations in the short and long term
What is the annual percentage rate (APR) expressed as?
An annual percentage of the required principal
What is the prime rate primarily affected by?
The state of the economy and government fiscal policy
What determines how much above the prime rate an individual pays?
Previous credit behavior
What is the formula to calculate the monthly periodic rate?
Monthly percentage rate = APR ÷ 12
What is the characteristic of a fixed APR?
It remains the same for the life of the loan
What is the primary purpose of the house being used as collateral in a mortgage?
To guarantee repayment of the loan
What is the purpose of the provision for release of parties in a mortgage deed?
To specify the terms for releasing the mortgage
What is a key benefit of using a mortgage to purchase a home?
It makes home buying more affordable
What is the purpose of the registration of mortgages?
To provide a public record of the mortgage
What is the consequence of defaulting on a mortgage?
The lender has the right to take back the property
Learn about the steps involved in creating a personal budget, including setting financial goals, making budget estimates, and controlling spending. Understand the importance of realistic projections and accurate records.
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