Question

Statement I: Saving a portion of the family income for emergencies is an essential part of a family budget.

Statement II: A family budget should be rigid and not allow any adjustments once it is set.

Options

• Statement I is true and Statement II is false.

• Statement I is false and Statement II is true.

• Both Statements I and II are true.

• Both Statements I and II are false.

Answer 1

Statement I is true and Statement II is false.

Explanation:

Saving is described as essential for financial security and for meeting emergencies and unforeseen costs. A well‑planned family budget should allow flexibility to accommodate changing circumstances and contingencies, so it should be adjustable rather than rigid.