Question

1. which of the following is a benefit of saving money in a bank? *

a) earning interest on your savings

b) avoiding taxes on your income

c) increasing your credit score

d) access to free financial advice

1. what is the consequence of spending more money than you earn? *

a) building wealth

b) increasing your credit score

c) going into debt

d) saving for retirement

Explanation:

Question 5

• Option a: Banks typically pay interest on savings accounts, so this is a key benefit of saving in a bank.
• Option b: Saving in a bank doesn't help avoid income taxes (income taxes are based on earnings, not savings methods in most cases).
• Option c: Saving in a bank alone doesn't directly increase credit score (credit score is related to credit usage, repayment history, etc.).
• Option d: Most banks don't offer free financial advice just for having a savings account.

• Option a: Spending more than earning means outflows exceed inflows, so wealth can't be built (wealth building requires saving/investing surplus).
• Option b: Spending more than earning can lead to missed payments or debt, which harms credit score, not increase it.
• Option c: If you spend more than you earn, you'll likely need to borrow money, leading to debt.
• Option d: Spending more than earning means no surplus to save for retirement.

Answer:

a) Earning interest on your savings

Question 6