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!

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What can contribute to a person's financial instability?

Emergency funds
High education levels
Low saving rates
Multiple income sources

The correct answer is: Low saving rates

Financial instability can arise from various factors, and low saving rates are a significant contributor to this issue. When individuals or households have low saving rates, they may struggle to cover unexpected expenses such as medical emergencies, car repairs, or job loss. The absence of savings limits their financial cushion, increasing vulnerability to debt and economic shocks. Without savings, individuals may need to rely on credit, leading to high-interest debts and compounding financial issues. In contrast, emergency funds, high education levels, and multiple income sources can enhance financial stability, as they provide security, better earning potential, and diversified income streams that collectively help to mitigate the risks associated with financial uncertainty.