Finance Unbox-ED ($) - Grade 6-8 - Session 014 - Assessment 4

Select all the statements that are true

• Tax is collected by the government to provide essential goods and services to people
• Tax is collected from both individuals and businesses
• Direct tax is tax levied on income earned
• Indirect tax is tax levied on the consumption of goods and services

Select all the examples of direct tax

• Goods and Service Tax
• Income Tax
• Capital Gains Tax
• Custom Duties

Select all the statements that are true

• Income tax is tax paid by individuals on salaries earned
• Income tax is tax paid by companies on profits made
• Capital gains tax is tax paid on purchase of assets
• Custom duties are paid on exports

Alex purchased a bean bag from Richa and the price paid includes GST. Select the statement that is true

• Alex needs to pay GST to the government since he purchased the bean bag
• Richa needs to pay GST to the government on behalf of Alex since it is part of the selling price
• Neither Alex nor Richa need to pay GST to the government
• Both Alex and Richa need to pay GST to the government

Select all the statements that are true

• Custom duties help increase imports
• Custom duties protect local companies against cheap imports
• Custom duties help tax the rich more
• Custom duties help tax the poor more

Select all the statements that are true

• Instant gratification is our desire to have something now even at the cost of our long-term goals
• Instant gratification is our ability to do things fast
• Delayed gratification is the self control we need to resist the temptation of now and achieve our long-term goals
• Delayed gratification means we should take more time to do everything

Which of the following are the reasons for us to save?

• Our future is uncertain and we could have unexpected expenses or events
• So we can invest and create wealth
• In order to buy high value items for which we do not have enough money now
• Build a retirement corpus for when we stop working

Select all the statements that are true

• Budget is a plan for how much of your income you want to save
• Budget is a plan for how you want to spend your time
• Budget is a plan for how much of your income you want to spend
• Budget is a plan for what you want to spend on

Budget is important because?

• Budget gives you a clear picture of your income, expenses and savings
• Budget helps you understand how much you are spending on needs vs wants
• Budget helps you find time to finish all your tasks
• Budget helps you save for long-term goals

Select the correct order for budget prioritization

• 1) Savings -> 2) Needs -> 3) Wants
• 1) Needs -> 2) Savings -> 3) Wants
• 1) Wants -> 2) Savings -> 3) Needs
• 1) Needs -> 2) Wants -> 3) Savings