BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Medium of exchange
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a store of value
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unit of account
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to start a fire
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Detailed explanation-1: -As per the FIRE movement, the amount of money needed to acquire financial independence equates to 25 times your annual spending. This figure is referred to as your “FIRE number”. To understand this better, consider you currently spend ₹5 lakhs each year. By this logic, your fire number would amount to ₹1.25 crores.
Detailed explanation-2: -Financial Independence Retire Early (FIRE) is a movement that prioritizes saving and investing 50% or more of your income so you can retire before you’re in your 60s. You can say you’ve reached the FIRE finish line once your savings can cover your expenses post-retirement, with inflation factored in.
Detailed explanation-3: -To achieve early retirement, F.I.R.E. investors cut costs aggressively and save large percentages of their income. Their milestone for financial independence is a portfolio large enough to sustain their spending with inflation-adjusted withdrawals equal to 4% of the portfolio’s initial value-the so-called 4% rule.