Investment

1.      Which of the following is the BEST explanation of investment?

• Spending money to make money

•    Buying stocks and bonds

• Buying stocks and bonds

• Hiring people

2. 2.    Which of the following terms basically describes activity that is the opposite of investment?

• Loss

• Liability

• Spending

• Consumption

3.      Which of the following is NOT a type of government investment?

•   Infrastructure

• 1. Research

• 1. Subsidies

• 1. Interest payments

The production possibility frontier represents:

• The maximum amount of two goods that can be produced with available resources and technology

• The minimum amount of two goods that must be produced to meet consumer demand

• The specific combination of two goods that will be produced based on consumer preferences

• The point at which the marginal cost of producing one good equals the marginal benefit of the other good

If an investor buys shares of a company's stock, they become a:

• Creditor of the company

• Owner of the company 

• Employee of the company

• Manager of the company

Which of the following best describes the key difference between saving and investing?

• Saving involves setting aside money for future use, while investing involves risking money to potentially earn returns

•  Saving is for short-term goals, while investing is for long-term goals.

•  Saving can only be done at a bank, while investing involves purchasing assets like stocks and bonds.

• Saving earns interest income, while investing earns capital gains and dividends.

In which year was the Income Tax Act of 1961 introduced in the Parliament?

• 1958

• 1960

• 1961

• 1962

Which of the following investments qualifies for deduction under Section 80C of the Income Tax Act?

• Fixed Deposits

• Public Provident Fund (PPF)

• National Savings Certificate (NSC)

• All of the above

Income from which of the following investments is exempt from tax?

• Bank Fixed Deposits

• Equity Shares

• Sovereign Gold Bonds

• Mutual Funds

What does ROI stand for in investment terms?

• Return on Investment

• Rate of Interest

• Risk of Investment

• Revenue of Investment