Saving, Insurance & Managing Risk is one of 9 topics in the Grade 10 Business Studies CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Saving means:
Setting aside money now rather than spending all of it immediately
Spending all available money as quickly as possible
Borrowing money to cover every expense
Investing all money in shares immediately
Answer: Setting aside money now rather than spending all of it immediately — Saving means setting aside money now, rather than spending all of it immediately, so it is available for future use.
Easy
2. For an individual, why is having savings useful in the event of an unexpected medical expense?
It creates a financial cushion, avoiding the need to borrow money at potentially high interest rates
Savings can never be used for medical expenses
Savings guarantee that medical expenses will never occur
Only businesses, never individuals, benefit from having savings
Answer: It creates a financial cushion, avoiding the need to borrow money at potentially high interest rates — Savings act as a financial cushion for unexpected expenses, such as a medical emergency, helping avoid the need to borrow at potentially high interest rates.
Medium
3. Where are savings generally kept, according to the lesson, since it is relatively safe and accessible and may also pay some interest?
Answer: A bank savings account — Savings are generally kept in a relatively safe, accessible place such as a bank savings account, which may also pay a small amount of interest.
