What is the correct meaning of financial literacy in livelihood?
Answer and explanation
Correct answer: Making informed decisions by understanding income, savings, expenditure and credit
Financial literacy means understanding income, expenses, savings, budgeting and the terms of credit in order to make sound financial decisions. It helps a person plan livelihood needs and avoid unnecessary debt. Depending only on loans is not financial literacy; it can increase financial risk. Exam tip: link financial literacy with budgeting, saving and responsible credit management.
Frequently asked questions
What is the correct answer to this question?
Making informed decisions by understanding income, savings, expenditure and credit
Why is this the correct answer?
Financial literacy means understanding income, expenses, savings, budgeting and the terms of credit in order to make sound financial decisions. It helps a person plan livelihood needs and avoid unnecessary debt. Depending only on loans is not financial literacy; it can increase financial risk. Exam tip: link financial literacy with budgeting, saving and responsible credit management.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Work, careers and livelihood.
