Unit 4 Chapter 10: Financial Management and Planning — Online MCQ Test
HOME SCIENCE · CLASS 11 FIRST PUC · Karnataka State Board
Practice Unit 4 Chapter 10: Financial Management and Planning with a free chapter-wise online MCQ test.
This chapter covers: Focusing on adult living this chapter details family budgeting savings investment options credit usage financial security and consumer rights..
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Unit 4 Chapter 10: Financial Management and Planning — Important Questions & Answers
What is the main purpose of family budgeting?
- A. To spend all income immediately
- B. To plan income and expenses in an organized way
- C. To avoid keeping records of money
- D. To increase debt
Answer: B. To plan income and expenses in an organized way
A family budget helps plan how income will be used for different needs and goals. It promotes controlled and purposeful spending.
A family budget helps plan how income will be used for different needs and goals. It promotes controlled and purposeful spending.
Which of the following is a fixed expense in a family budget?
- A. Electricity bill
- B. Medical expenses
- C. House rent
- D. Travel expenses
Answer: C. House rent
House rent is usually fixed because it remains the same every month. Variable expenses like electricity and travel may change.
House rent is usually fixed because it remains the same every month. Variable expenses like electricity and travel may change.
A family earns Rs. 30,000 per month. If they spend Rs. 24,000, how much can be saved?
- A. Rs. 4,000
- B. Rs. 5,000
- C. Rs. 6,000
- D. Rs. 7,000
Answer: C. Rs. 6,000
Savings = Income − Expenditure. Here, 30,000 − 24,000 = Rs. 6,000.
Savings = Income − Expenditure. Here, 30,000 − 24,000 = Rs. 6,000.
If a person uses credit unwisely, which problem is most likely to occur?
- A. Increase in savings automatically
- B. Difficulty in repaying debt
- C. Reduction in needs
- D. Guaranteed profit
Answer: B. Difficulty in repaying debt
Credit should be used carefully because borrowed money must be repaid. Unwise use can lead to debt burden and financial stress.
Credit should be used carefully because borrowed money must be repaid. Unwise use can lead to debt burden and financial stress.
Which of the following is the most suitable reason for creating a household budget at the beginning of the month?
- A. To decide expenses after spending money
- B. To ensure income is allocated according to priorities
- C. To spend more on unplanned purchases
- D. To avoid recording savings
Answer: B. To ensure income is allocated according to priorities
A monthly budget helps assign income to priority expenses, savings, and future needs before money is spent. This improves financial discipline.
A monthly budget helps assign income to priority expenses, savings, and future needs before money is spent. This improves financial discipline.