9 ECB Term 2 Revision

What is the financial responsibility of every individual according to the text?

• To spend money freely without planning

• To manage money in ways that provide the greatest satisfaction

• To save all money without spending

• To ignore financial planning

How do people build wealth according to the document?

• By spending more than they earn

• By making decisions about managing financial rewards and risks

• By avoiding any financial planning

• By relying solely on luck

What is a common habit of wealthy people?

• Living beyond their means

• Making thriftiness a habit

• Ignoring their budget

• Spending without planning

Why do wealthy people budget meticulously?

• To avoid paying taxes

• To know where every cent is going

• To impress others

• To spend more on luxury items

What type of financial goals do wealthy people have?

• Vague financial goals

• No financial goals

• Very precise financial goals

• Random financial goals

What kind of savings and investment plans do wealthy people have?

• Random savings and investments

• No savings and investments

• Targeted savings and investments

• Unplanned savings and investments

What are the three key strategies involved in managing finances responsibly?

• Setting financial goals, Budgeting, Minimising risks

• Setting financial goals, Saving and investing, Minimising risks

• Budgeting, Saving and investing, Minimising risks

• Setting financial goals, Saving and investing, Budgeting

What does ROI stand for in financial terms?

• Rate of Interest

• Return on Investment

• Revenue on Income

• Ratio of Income

What are the possible types of returns on an investment?

• Only positive

• Only negative

• Positive or negative

• Neutral

What are earnings called when an investment is sold for a profit?

• Dividends

• Interest

• Capital gains

• Tax benefits