International Baccalaureate (IB) Practice Exam

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Prepare for the International Baccalaureate Exam with comprehensive quizzes including multiple choice questions and detailed explanations to boost your confidence. Hone your skills with our expertly crafted materials!

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.

What financial behavior is crucial for personal wealth accumulation?

Living beyond one's means
Regular saving and investment
Constantly changing jobs
Frequent borrowing

The correct answer is: Regular saving and investment

Regular saving and investment are fundamental behaviors for personal wealth accumulation. This practice allows individuals to set aside portions of their income, creating a financial cushion and enabling the growth of wealth over time through compounding interest. By consistently saving and investing, individuals can take advantage of financial markets and achieve long-term goals such as retirement, property acquisition, or education funding. In contrast, living beyond one's means leads to debt and financial instability, while constantly changing jobs may disrupt income consistency and benefits, making it challenging to build savings. Frequent borrowing can result in high-interest payments and mounting debt, preventing individuals from accumulating wealth effectively. Thus, adopting a disciplined approach to saving and investing is essential for building and maintaining personal wealth.