JSS 1 Social and Citizenship Studies Flashcards: Meaning, Types and Management of Financial Risks and Rewards

Question 1

What is financial risk?

Accepted Answer

the possibility of losing money or not achieving an expected financial result

Question 2

What is a financial reward?

Accepted Answer

a benefit or return gained from a financial decision or effort

Question 3

Default risk is the possibility that a borrower will ____.

Accepted Answer

fail to repay as agreed

Question 4

Risk from ignorance arises when a person makes a decision without ____.

Accepted Answer

enough reliable information or understanding

Question 5

Reputation risk is the chance that an action will damage ____.

Accepted Answer

trust in a person or organisation

Question 6

A reward from planned saving may be ____.

Accepted Answer

money available for a future goal

Question 7

A return on investment is ____.

Accepted Answer

the gain or loss produced by invested money

Question 8

Higher possible reward often comes with ____.

Accepted Answer

higher risk

Question 9

A budget manages risk by helping a person ____.

Accepted Answer

plan income and control spending

Question 10

An emergency fund reduces the risk that an unexpected expense will ____.

Accepted Answer

cause severe financial difficulty

Question 11

Planned saving works best when deposits are regular and linked to ____.

Accepted Answer

a clear goal

Question 12

Before lending money, a person should consider the borrower’s ability to ____.

Accepted Answer

repay

Question 13

Diversifying investments means ____.

Accepted Answer

spreading money across different suitable assets

Question 14

Gambling is risk-induced because money may be lost on an ____.

Accepted Answer

uncertain outcome

Question 15

Email hacking can create financial risk through theft, fraud, and ____.

Accepted Answer

identity misuse

Question 16

Drunk driving creates financial and personal risk through accidents, injury, and ____.

Accepted Answer

legal costs

Question 17

Which is NOT a risk-management strategy: borrowing without a repayment plan, budgeting, saving, or researching decisions?

Accepted Answer

borrowing without a repayment plan

Question 18

If a proposed reward sounds guaranteed and unusually high, the safest response is to ____.

Accepted Answer

investigate carefully and seek trusted advice

Question 19

Insurance manages some risks by ____.

Accepted Answer

sharing specified losses under agreed terms

Question 20

A sound financial decision compares expected reward, possible loss, affordability, and ____.

Accepted Answer

reliable information

Strong work.