Financial Education Quiz

If you invest Rs 100000 at an interest rate of 8% pa compounded annually, how many years it will take to double?

• 5

• 6

• 9

• 15

Answer explanation

To double an investment at 8% compounded annually, use the Rule of 72: 72/8 = 9 years. Thus, it will take 9 years to double Rs 100000.

Which of these is not considered as technological factor under micro environment factors?

• Wireless charging

• Engine efficiency

• Security in cryptography

• None

Answer explanation

All options listed, including wireless charging, engine efficiency, and security in cryptography, are technological factors. Therefore, 'None' is the correct answer as it indicates that all listed options are indeed technological factors.

Bank rate means

• Borrowing Rate by banks from RBI without Collateral

• Borrowing Rate by banks from RBI with Collateral

• RBI borrowing Rate

• None

Answer explanation

Bank rate refers to the rate at which banks borrow from the RBI without providing collateral. This makes the first option the correct choice, as it accurately describes the nature of the bank rate.

Custom duty comes under which types of tax in India?

• Direct Tax

• Indirect Tax

• Provisional Tax

• None

Answer explanation

Custom duty is classified as an indirect tax in India because it is levied on goods imported or exported, affecting the price of goods rather than the income of individuals or corporations.

What is the compound interest on Rs 10000 for 2 Years at 10% per annum compounded annually?

• 2100

• 12100

• 2000

• 12000

Answer explanation

To calculate compound interest: A = P(1 + r/n)^(nt). Here, P = 10000, r = 0.10, n = 1, t = 2. A = 10000(1 + 0.10/1)^(1*2) = 10000(1.1)^2 = 12100. Interest = A - P = 12100 - 10000 = 2100.

If you invest Rs 10000 for 2 Years at 10% per annum compounded annually what is the maturity amount you will get after 2 years?

• 2100

• 12100

• 2000

• 12000

Answer explanation

To calculate the maturity amount, use the formula A = P(1 + r/n)^(nt). Here, P = 10000, r = 0.10, n = 1, t = 2. Thus, A = 10000(1 + 0.10/1)^(1*2) = 10000(1.1)^2 = 12100. Therefore, the correct answer is 12100.

Which of the following is an example of income?

• Wages

• Salary

• Commission

• All of these

• None of these

Answer explanation

Wages, salary, and commission are all forms of income earned for work or services provided. Therefore, the correct answer is 'All of these' as they all represent different types of income.

Which of the following is an example of business expense?

• Payment of Wages/salary

• Factory /Office lease/ rent payment

• Payment made to vendors

• All of the above

Answer explanation

All listed options are business expenses: wages/salaries for employees, rent for office or factory space, and payments to vendors for goods or services. Therefore, the correct answer is 'All of the above'.

Revenue Expense means

• Expenditure that does not create any asset

• Expenditure that creates an asset

• Long term expense

• Non-Recurring Expense

Answer explanation

Revenue Expense refers to expenditures that do not create any asset, meaning they are costs incurred for operations that do not result in long-term benefits or physical assets.

Capital Expenditure means

• Expenditure that does not create any asset

• Expenditure that creates an asset

• Recurring Expense

• Short Term Expense

Answer explanation

Capital Expenditure refers to spending that results in the creation of an asset, such as property or equipment, which provides long-term value. Therefore, the correct choice is 'Expenditure that creates an asset'.