International Baccalaureate (IB) Practice Exam

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Prepare for the International Baccalaureate with our quiz. Hone your skills with multiple-choice questions and detailed explanations. Excel in your IB exams!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Following the Five Foundations will help you to, one day, become self-insured. True or False?

True
False
Only if you invest wisely.
Only in specific circumstances.

The correct answer is: True

The statement is true because following the Five Foundations is designed to establish a strong financial foundation that can lead to self-insurance—a state in which you have the financial security and resources to cover your own risks without relying on traditional insurance. The Five Foundations typically include establishing an emergency fund, paying off debt, saving for retirement, and building wealth, among others. By adhering to these principles, individuals can gradually build their financial literacy and capability, ultimately achieving a level of financial independence that negates the need for insurance in certain situations. The foundation emphasizes the importance of long-term planning and financial discipline, both of which are essential for becoming self-insured. Over time, as one builds savings and investments while managing risks, the ability to self-insure becomes more attainable. The focus is on being proactive with finances rather than reactive, which is a key aspect of self-insurance.