Question

Match List-I with List-II 

Choose the correct answer from the options given below: 
 

• A. A-IV, B-III, C-II, D-I
• B. A-III, B-I, C-IV, D-II
• C. A-II, B-III, C-I, D-IV
• D. A-III, B-II, C-I, D-IV

Hint:

Associate the financial terms with their common definitions:
- Deficit = Shortfall (Expenditure \( > \) Income - I).
- Compulsory Savings = PF (Provident Fund - IV).
- Insurance = Protection (III).

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
A family budget is a plan for future expenditures and savings based on expected income.
Understanding basic financial terms—such as types of savings, deficits, and protective insurance—is crucial for effective home economics and resource management.

Step 2: Detailed Explanation:
Let us match the family budget terms with their descriptions:
- (A). Life Insurance: Insurance is a risk management tool that protects individuals or families from financial losses resulting from unexpected events (like premature death or disability).
Thus, (A) matches with (III) (A kind of protection against financial losses).
- (B). Deficit Budget: A budget is in deficit when the planned expenditures exceed the total income during a specific period.
Thus, (B) matches with (I) (Expenditure exceeds the income).
- (C). Compulsory Savings: These are savings mandated by law or employer policies, such as the General Provident Fund (GPF) or Employee Provident Fund (EPF), which are automatically deducted from the monthly salary.
Thus, (C) matches with (IV) (The Provident Fund).
- (D). Investment: Investment refers to allocating surplus funds into productive channels (like stocks, mutual funds, or real estate) with the expectation of generating future returns or capital appreciation.
Thus, (D) matches with (II) (Putting surplus funds in some productive activity).
This matching sequence is: A-III, B-I, C-IV, D-II.

Step 3: Final Answer:
The correct matching sequence is A-III, B-I, C-IV, D-II.