Bhavna's Final Exam Test On finance

What is the meaning of your fire number

• your recent purshase

• your past bills

• amount of money required to retire

• amount of money you have in your bank account right now

What does the term 'financial independence' mean?

• Having no debts

• Having enough income to cover living expenses without working

• Owning multiple properties

• Having a high credit score

Which of the following is a common method to achieve financial independence?

• Spending less than you earn

• Investing in stocks

• None of the above

• Both a and b

What is a common goal of retirement planning?

• To start a new business

• To travel the world

• To ensure a steady income during retirement

• To buy a new house

1. What is the primary index of the National Stock Exchange (NSE) of India?

• A) Sensex

• B) Nifty 50

• C) Bankex

• D) CNX 500

What is the main purpose of a stock market index?

• D) To measure the GDP growth

• C) To calculate inflation rates

• B) To determine the interest rates

• A) To track the performance of a specific group of stocks

Which of the following is a key component of a comprehensive financial plan?

• A) Emergency fund

• B) Social media presence

• C) Personal branding

• D) Networking events

What is the significance of asset allocation in investment strategy?

• B) It determines the risk level of the portfolio

• A) It helps in minimizing taxes

• C) It focuses solely on real estate investments

• D) It is irrelevant to long-term growth

What is the role of a financial advisor in personal finance management?

• C) To manage a company's finances

• B) To help clients make informed investment decisions

• A) To provide legal advice

• D) To sell insurance products

Which of the following is a benefit of diversifying an investment portfolio?

• A) It guarantees higher returns

• D) It focuses only on high-risk assets

• B) It reduces overall risk

• C) It eliminates all market risks