Statement I: Saving a portion of the family income for emergencies is an essential part of a family budget. Statement II: A family budget should be rigid and not allow any adjustments once it is set.

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Statement I is true and Statement II is false. Explanation: Saving is described as essential for financial security and for meeting emergencies and unforeseen costs. A well‑planned family budget should allow flexibility to accommodate changing circumstances and contingencies, so it should be adjustable rather than rigid.

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