Understanding Budgets

Which of the following is NOT a type of budget mentioned in the introduction?

• Family budget

• Business budget

• Personal budget

• Government budget

What is a deficit budget?

• When there is no income or expenditure

• When total income is less than total expenditure

• When total income exceeds total expenditure

• When total income equals total expenditure

In a surplus budget, what do people generally do with the extra funds?

• They save or invest the surplus

• They take loans to cover expenses

• They reduce their income

• They ignore the surplus

What is the main characteristic of a balanced budget?

• Total income is more than total expenditure

• Total income is less than total expenditure

• Total income and total expenditure are equal

• There is no expenditure

What are the two main components of a budget?

• Income and savings

• Revenue and profit

• Receipts and expenditure

• Assets and liabilities