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Introduction to financial market

Total questions: 45

Worksheet time: 32mins

Name
Class
Date
1.

The goal of a budget is _________________.

a)

to spend more than you make

b)

to spend less than you make

2.

Income is all the money you earn (make) over a period of time. Usually a month.

a)

True

b)

False

3.

There are two types of expenses. They are ____________ and _______________. Choose two.

a)

Essential Expenses (things that you need)

b)

iReady expenses

c)

discretionary and non discretionary

4.

People create and keep a personal budget to help them _____.

a)

set and reach financial goals

b)

apply for loan

c)

buy anything they want

d)

earn promotions at work

5.

People create and keep a personal budget to help them _____.

a)

set and reach financial goals

b)

apply for loan

c)

buy anything they want

d)

earn promotions at work

6.

Which of the following are considered variable expenses? (You can choose more than one.)

a)

Magazine subscription

b)

Electricity

c)

Insurance coverage

d)

Clothing

e)

Recreation and vacation

7.

Which of the following are considered fixed expenses? (You can choose more than one.)

a)

Cable subscription

b)

Electricity

c)

Insurance coverage

d)

Rent

e)

Medical fees

8.

Which of the following are considered WANTs? (You can choose more than one.)

a)

Concert tickets

b)

Water

c)

A new pair of shoes

d)

Rent

e)

Medical fees

9.

Which of the following are considered NEEDs? (You can choose more than one.)

a)

Airpods

b)

Water

c)

A new pair of shoes

d)

Food

e)

Playstation 5

10.

Find the savings amount Gavel needs to set aside each month to be able to afford a phone worth ₱22,500 in 6 months.

(a)  

11.

Cherry recorded the following as her transportation expense.

Feb - ₱2,550

Mar - ₱2,810

Apr - ₱2,608


Find her monthly average expense for transportation.

(a)  

12.

Which of the following statements about money is false?

a)

Money can buy happiness.

b)

Money is a tool.

c)

Everyone needs money to purchase goods.

d)

A penny saved is a penny earned.

13.

The first step in creating a budget is _________.

a)

know your income

b)

determine fixed expenses

c)

determine variable expenses

d)

review periodically

14.

The first consideration to start the budgeting process is to _________.

a)

set financial goals

b)

pay off all the debts

c)

invest in the stock market

d)

borrow money

15.

Find the savings amount Harriet needs to set aside each month to be able to afford a watch worth 12,500 in 8 months.

(a)  

16.

Which word of phrase should be at the top of the left column of this budget?

a)

Cash flow

b)

Fixed costs

c)

Income

d)

Savings

17.

Which statement about variable expenses is true?

a)

Variable expenses include only large costly items.

b)

Variable expenses should not be included in the budget.

c)

Variable expenses include wants but not needs.

d)

Variable expenses are easier to cut than fixed expenses.

18.

Who is the current finance minister of India?

a)

Arun Jaitley

b)

Nirmala Sitharaman

c)

Shaktikanta Das

d)

Narendra Modi

19.

Financial year in India is from

a)

1st jan to 31st dec

b)

1st april to 31st march

c)

1st july to 30th june

20.

What does the S stand for in SMART GOALS

a)

Specific

b)

Special

c)

Standard

d)

Sports

21.

What does the M stand for in SMART Goals

a)

Mighty

b)

Mediocre

c)

Measurable

d)

Most

22.

What does the A stand for in SMART goals?

a)

Answer

b)

Attainable

c)

Achieve

d)

Application

23.

Why is it important that SMART goals are measurable?

a)

So you know exactly what you are trying to accomplish.

b)

So you have a deadline you are working within.

c)

So you know when you have accomplished it or not.

d)

So it is something you care about.

24.

What does the M in SMART stand for?

a)

Maximum - there are no limits for goals

b)

Memorable - a goal must be easily remembered

c)

Measurable - a goal must have some kind of number attached so you have a way to know if you are reaching the goal.

d)

Mental - you have to be able to think about the goal.

25.

What does the A in SMART stand for?

a)

Attainable - a goal must be reachable; you CAN do it.

b)

Admirable - a goal must impress people.

c)

Artistic - a goal must be creative.

d)

Academic - a goal must be scholarly and oriented towards learning.

26.

As per Economics, Investment is ______________

a)

Building Productive Assets

b)

Building Financial Market

c)

Building Financial Product

d)

None of the above

27.

Liquidity means_________

a)

How quickly you will get cash

b)

How quickly you can convert into Cash

c)

How quickly you can market

d)

How well you will get returns

28.

Which of the following is the correct description for fixed deposit account

a)

Allowed to make payment from cheque

b)

Savings cannot be withdrawn before the maturity date.

c)

Saving can be withdrawn through automated teller machine

29.

Puan Zakiah bought a house for RM 380000 in cash. She sold the house for RM 620000 after 5 years. The total amount of the charges involved in the transaction is RM 42000. Calculate the return of investment of Puan Zakiah.

a)

49.5%

b)

52.1%

c)

56.9%

d)

74.2%

30.

At the beginning of the year, Daniel saves RM 10000 in a fixed deposit account which offered an interest rate or 5% per annum and the interest is compounded once every 4 months. What is the amount of interest receive by Daniel by the end of the year?

a)

RM508.38

b)

RM509.45

c)

RM10508.38

d)

RM10509.45

31.

Save money for a certain period of time to get higher interest rates.

a)

fixed deposit account

b)

current account

c)

savings account

32.

What is the act of putting money aside on your paycheck for future use called?

a)

Paying someone first

b)

Paying yourself first

c)

Paying someone second

d)

Paying yourself second

33.

What is a savings certificate with a fixed maturity date and specified fixed interest rate?

a)

Credit

b)

Savings Tools

c)

Certificate of Deposit

d)

Money

34.

How money changes over time, money earned today is worth more than money in the future because you can earn interest

a)

Compounding

b)

Interest

c)

Degenerating Money

d)

Time Value of Money

35.

What formula is useful for financial estimates and understanding the nature of compound interest?

a)

Rule of 2

b)

Compounding

c)

Rule of 72

d)

Doubling

36.

What is a financial institution that accepts deposits and channels the money into lending activities?

a)

Credit

b)

Commercial Banks

c)

Credit Unions

d)

Insurance

37.

What is it?

a)

money

b)

check

38.

Take money out from your bank account.

a)

withdraw

b)

deposit

39.

Which type of account generally opened by bussinessmen......

a)

Saving bank account

b)

Current bank account

c)

Recurring bank account

d)

Fixed deposit bank account

40.

Which type of bank account does not give interest to account holder ......

a)

SB account

b)

Current account

c)

Recurring account

d)

Fixed deposit account

41.

The instrument traded in securities market is

a)

Currency

b)

Crude

c)

Precious Metal

d)

Stock

42.

Regulator of Secondary market is

a)

RBI

b)

SEBI

c)

IRDAI

d)

PFRDA

43.

Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?

a)

a. Secondary market

b)

b. Primary market

c)

c. Financial markets.

d)

Money market

44.

The new issues market is also known as

a)

a. Money market

b)

b. Primary market

c)

c. Stock exchange

d)

d. Secondary market

45.

Instruments deals in capital market are

a)

a) call money

b)

b) Commercial Bill

c)

c) Zero Coupon Bard

d)

d) Equity Shares