Question:medium

Which of the following is a family budget?

Show 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!
Updated On: Mar 2, 2026
  • Balanced Budget
  • Surplus Budget
  • Deficit Budget
  • All of these
Show Solution

The Correct Option is D

Solution and Explanation

A family budget refers to a financial plan that outlines a family's income and spending over a specific period. It helps in managing household finances effectively. Let's analyze the options given in the context of a family budget:

  • Balanced Budget: This occurs when the total income equals total expenditures. For a family, maintaining a balanced budget means that they are living within their means, and all needs and expenses are covered without overspending.
  • Surplus Budget: This situation arises when the income exceeds expenditures. For a family, this means they have extra money left over after paying for all expenses, which can be saved or invested for future needs.
  • Deficit Budget: In this case, the expenditures exceed income. A family experiencing a deficit budget is spending more than they earn, possibly leading to debt if not managed properly.

Each type of budget—balanced, surplus, and deficit—serves as a description of a family's financial situation and is important for different reasons:

  • A Balanced Budget ensures financial stability and helps avoid debt.
  • A Surplus Budget allows for savings and financial growth, providing a cushion for emergencies or future expenses.
  • A Deficit Budget highlights a need for financial adjustment to prevent long-term financial issues.

Given the definitions, a family can experience any of these budgets at different times based on their financial circumstances. Thus, in the context of a family budget, the correct answer is:

All of these

Was this answer helpful?
0