Financial Literacy Trivia Quiz

The correct answer is "a necessity to me and my family." This implies that having a financial plan is crucial for the individual and their family. It suggests that they recognize the importance of having a plan in order to manage their finances effectively and ensure their financial well-being.

The correct answer is "personal secretary in finance." This analogy suggests that a financial consultant plays a similar role to a personal secretary in the field of finance. Just as a personal secretary assists with administrative tasks and manages schedules, a financial consultant helps individuals or businesses with their financial planning, investment decisions, and other financial matters. The comparison highlights the supportive and organizational role that a financial consultant plays in managing and optimizing one's financial affairs.

The given statement suggests that the person is living from paycheck to paycheck, which indicates a lack of financial stability. Leaving financial planning to someone else may not be the best option as it is important for individuals to take control of their own finances. Seeking immediate help in personal financial planning is the most appropriate choice to improve the person's financial situation and secure a better future.

Paying the full amount owed for that month is the best way to manage credit card debt because it helps to avoid accumulating interest charges and additional fees. By paying the full amount, you are effectively reducing your debt and preventing it from growing further. This approach also helps to maintain a good credit score and financial stability in the long run.

The correct answer is 10% - 15% of my monthly income. This answer suggests that the individual should save a portion of their monthly income, specifically between 10% and 15%. This is a common recommendation for personal finance, as saving a percentage of income can help individuals build an emergency fund, save for future goals, and create financial stability. By consistently setting aside this amount each month, the individual can gradually accumulate savings over time.

Wealth Protection plans are designed to protect individuals from the financial impact of critical illnesses. They provide coverage and financial support in case the policyholder is diagnosed with a critical illness, helping to cover medical expenses and loss of income during the treatment period. This type of plan does not specifically address the protection of wealth from children claiming it as inheritance or loss due to charity donations. Therefore, the correct answer is "It is a plan that helps to protect the loss of income due to critical illnesses."

The term "asset rich-cash poor" refers to a situation where an individual or entity possesses a significant amount of assets, such as property, investments, or valuable possessions, but lacks sufficient liquid cash to meet immediate financial obligations or emergencies. This means that although they may have substantial wealth in terms of assets, they do not have readily available cash to address urgent financial needs and cannot easily convert their assets into cash.

The CPF Special Account can be used for investment and retirement purposes. It allows individuals to save and invest their money for long-term goals such as retirement. The funds in the Special Account can be used to purchase various investment instruments such as stocks, bonds, and mutual funds. Additionally, the Special Account provides higher interest rates compared to other CPF accounts, making it an attractive option for individuals looking to grow their savings for retirement.

The most basic Wealth Protection Plan that one should have is health insurance. Health insurance provides financial protection against medical expenses, ensuring that individuals have access to necessary healthcare services without incurring excessive costs. It helps to safeguard one's wealth by covering medical bills, hospitalization expenses, and other healthcare-related costs. By having health insurance, individuals can protect their finances and ensure that they receive the necessary medical care when needed, reducing the risk of financial strain due to unexpected healthcare expenses.

When starting a new job, it is important to prioritize building up an emergency fund account. This account serves as a financial safety net in case of unexpected expenses or emergencies, such as medical bills or car repairs. By saving money in an emergency fund, individuals can have peace of mind knowing that they are prepared for any unforeseen circumstances that may arise. Starting a savings account, shopping for office clothes, or setting aside money for a dream vacation can be done after establishing a solid emergency fund.

The statement mentions a preference for stable and diversified investments. While shares and gold can be volatile and may not provide the desired stability, funds offer the advantage of diversification by investing in a variety of assets. This helps to spread the risk and potentially provide more stable returns over time. Therefore, funds are the most suitable option for growing savings in a stable and diversified manner.

When a Muslim passes away, it is important for the family members to settle the deceased's liabilities to God and mankind. This refers to fulfilling any religious obligations or debts that the person may have had, such as paying off any outstanding religious dues or charity obligations. It is considered a religious duty to settle these liabilities before distributing the remaining assets or wealth of the deceased. This ensures that the person's religious responsibilities are fulfilled and their debts are settled before any inheritance or distribution takes place.

All of the listed assets (gold jewellery, cash value of investment-linked plans, and savings balances) are examples of zakatable assets. Zakatable assets refer to assets that are subject to zakat, which is a form of obligatory charity in Islamic finance. Zakat is typically calculated based on the value of a person's assets, including gold jewellery, cash value of investment-linked plans, and savings balances. Therefore, the correct answer is "all of the above".

The correct answer is "interest on loans" because riba refers to the charging or paying of interest on loans in Islamic finance. It is considered forbidden or unethical in Islamic law as it is seen as exploitative and unjust. This prohibition is based on the belief that money should not generate more money on its own, but should be used for productive purposes. Therefore, riba is generally understood as interest charged on loans, making it the correct answer in this context.

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