Financial Preparedness Quiz

Why is it important to be financially prepared for unexpected events?

• To avoid paying taxes

• To handle financial emergencies effectively

• To increase monthly income

• To reduce spending on luxury items

What is the recommended amount of income to save in an emergency fund?

• One month

• Three months

• Six months

• Twelve months

Why should you keep cash at home during emergencies?

• To invest in stocks

• To pay for online subscriptions

• To lend to friends

• To cover immediate needs if ATMs are inaccessible

What is the benefit of setting up direct deposit?

• It ensures you get paid even if banks are closed

• It helps you save more money

• It increases your salary

• It allows you to avoid taxes

How can automating bill payments protect your credit?

• By eliminating all debts

• By reducing your interest rates

• By ensuring timely payments

• By increasing your credit limit

Which type of insurance is essential for protecting your vehicle against natural disasters?

• Travel insurance

• Health insurance

• Auto insurance

• Pet insurance

Why is life insurance important in financial emergency preparedness?

• It covers travel expenses

• It helps pay off debts and supports family expenses

• It increases your monthly income

• It provides discounts on groceries

What should a home inventory include?

• Only furniture

• Only expensive items

• All personal possessions

• Only electronics

Why is it important to have physical copies of important documents?

• To lend them to friends

• To sell them later

• To use them as decoration

• To ensure access during power or internet outages

Where should you store physical copies of important documents?

• Under your bed

• In a fireproof and waterproof container

• In a plastic bag

• In a regular drawer