Question

Which of the following is a family budget?

• A. Balanced Budget
• B. Surplus Budget
• C. Deficit Budget
• D. All of these

Hint:

Family budget types:
Balanced: Income = Expenditure
Surplus: Income>Expenditure (ideal for savings)
Deficit: Income<Expenditure (needs corrective action)
Aim for surplus or balanced budget whenever possible!

Answer 1

The Correct Option is D

Step 1: Understanding family budget.
A family budget is a financial plan that estimates income and expenditures over a specific period. It helps in managing household finances effectively.
Step 2: Types of family budgets.
Based on the relationship between income and expenditure, family budgets can be of three types:
Balanced Budget: When total income equals total expenditure. The family spends exactly what it earns.
Surplus Budget: When total income is greater than total expenditure. The family saves money or invests the excess.
Deficit Budget: When total expenditure exceeds total income. The family may need to borrow money or use savings to cover the shortfall.
Step 3: Analysis of each option.

(A) Balanced Budget: This IS a type of family budget. Income = Expenditure.
(B) Surplus Budget: This IS a type of family budget. Income>Expenditure.
(C) Deficit Budget: This IS a type of family budget. Expenditure>Income.
(D) All of these: Correct. Balanced, surplus, and deficit are all types of family budgets.
Step 4: Importance of budget types.

Balanced budget indicates financial stability
Surplus budget allows for savings and investments
Deficit budget warns of financial stress and need for adjustment

Final Answer: (D) All of these.