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RAKHI SIBLING SPECIAL QUIZ

Total questions: 15

Worksheet time: 29mins

Name
Class
Date
1.

Rekha asks her brother how much will she be able to buy with her income in 2024 given that her income and the prices of all the goods will have doubled by 2024 ?

a)

 More than today

b)

   The same amount as today

c)

   Less than today

d)

 Don’t know

2.

 In general, investments that are riskier tend to provide more returns than investments with less risk.

a)

True

b)

False

c)

Don't know

3.

Kaamna and her brother Dev heard their parents talking about investing in mutual and index funds. What are mutual and index funds?

a)

  Insurance policies to provide an umbrella for “rainy days”

b)

 Funds you have for emergencies

c)

  Baskets of stocks that you can invest in

d)

 Bank savings products on which you earn regular interest

4.

Harish wants to save some amount to purchase a diamond ring for his wife. He consults his sister as to how much he should save every month. His sister tells him to save according to the 50:30:20 budgeting rule. How much should he save every month?

a)

20-50%

b)

   20 – 30%

c)

Average of 50, 20, 30 i.e. 33.3%

d)

About 20%

5.

The return may be thought of as

a)

The growth in the value of an investment

b)

  The risk associated with an investment

c)

  The process of returning the stock to the corporation that issued it

d)

The fee you need to pay for owning different financial products

6.

Divya asks her elder brother Sudhir what savings accounts and money market accounts are most appropriate for :

a)

Long term investments

b)

Emergency funds and short term goals

c)

Earning a high rate of return

7.

Ramesh purchased a new car by taking out a loan from bank. To reduce the total finance costs paid over the life of the auto loan, his sister advised him to choose a loan with the:

a)

  Lowest monthly payment

b)

   Longest repayment term

c)

Shortest repayment term

8.

Which of the following types of insurance is most important for young parents?

a)

 Life insurance

b)

Disability Insurance

c)

Property Insurance

d)

Dental Insurance

9.

Abha asks her brother the consequences of not paying her mortgage?

a)

The bank will allow you to lend you more money to pay off mortgage

b)

Your credit rating will go up.

c)

It will set you on the path to foreclosure, which means losing your house.

d)

It means you have to rent out the house and use that money to pay mortgage

10.

The benefit of diversification in your investments is:

a)

reduced risk

b)

increased return

c)

reduced tax liability

d)

increased risk

11.

Recognize the name of the cryptocurrency whose logo is displayed here

a)

Litecoin

b)

Ethereum

c)

Ripple

d)

Cardano

12.

 What is the ‘net worth’ of a business ?

a)

Income - Expenses 

b)

Profits - Losses 

c)

Total assets - Total liabilities

d)

Total value of shares in market 

13.

 Aman wanted to gift a watch worth ₹9,000 to his sister but he had saved up only ₹3,000. Which banking product can he use to fill up this gap?

a)

Debit cards

b)

Equated Monthly Instalments (EMI)

c)

Loan

d)

Fixed Deposit

14.

Raman has to help his cousin Ria to identify the best suggestions for building and maintaining a good credit rating? What should he choose?

a)

Have money in savings account to protect against identity theft

b)

Making safe investments and set clear financial goals

c)

Keeping debts low, pay bills on time 

d)

Deposit huge amounts for longer time period in account 

15.

Which statement is true about liquidity?

a)

the more liquid an investment, the more return

b)

 the less liquid the investment, the less return

c)

 the more liquid an investment, the less return

d)

both a & b