BANKING GENERAL KNOWLEDGE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income
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Expense
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Balanced Budget
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Savings
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Detailed explanation-1: -The term overspending is also used for investment projects when payments exceed actual calculated cost.
Detailed explanation-2: -The 50/30/20 rule of budgeting is a simple method that helps you manage your money more effectively. This basic thumb rule is to divide your post-tax income into three spending categories – 50% for needs, 30% for wants, and 20% for savings.
Detailed explanation-3: -Spending less than you earn is one of the most important financial concepts to understand and live by. If you don’t live on less than you earn, you will never get ahead. Spending less than you earn may take some initial life changes, but the longer you do it, the easier it is to continue doing it.
Detailed explanation-4: -The three types of budgets are a surplus budget, a balanced budget, and a deficit budget. The state budget is a financial document including income and expenditure for the year. An income-and expense-based spending plan is referred to as a budget.