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BASIC FINANCIAL LITERACY CONCEPTS

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

What is the positive difference between your total income and total expenses known as?

a)

Deficit

b)

Saving

c)

Compounding

d)

Surplus

2.

What is the negative difference between your total income and total expenses known as?

a)

Compounding

b)

Surplus

c)

Deficit

d)

Saving

3.

What is the key step to make sure your future is financially secure called?

a)

Deficit

b)

Surplus

c)

Saving

d)

Compounding

4.

What is the formula used to estimate the number of years required to double the invested money at a given annual rate of return called?

a)

Rule of 72

b)

Years to double

c)

Interest rate

d)

Compounding

5.

How many years will it take for the amount of Rs.1000/-, invested at 9 % rate of interest, to get doubled?

a)

6 years

b)

12 years

c)

8 years

d)

10 years

6.

What is the key tip to save money by reducing unnecessary expenses?

a)

Increase high-interest debts

b)

Spend before saving

c)

Save before spending

d)

Ignore tax benefit schemes

7.

What is the main purpose of balance sheets?

a)

Showing assets and liabilities

b)

Showing profits and losses

c)

Showing revenue and expenses

d)

Showing cash flow

8.

What are payments that are to be received from customers on a future date called?

a)

MSME

b)

Working capital loan

c)

Payables

d)

Receivables

9.

What are the money owed to others for products or services purchased on credit called?

a)

Receivables

b)

Payables

c)

Working capital loan

d)

MSME

10.

What does MSME stand for?

a)

Micro, Small and Medium Enterprises

b)

Medium, Small and Micro Enterprises

c)

Medium, Micro and Small Enterprises

d)

Small, Medium and Micro Enterprises

11.

What are MSMEs known as in the Indian Economy?

a)

Economic Barriers

b)

Growth Stoppers

c)

Economic Hurdles

d)

Growth Engines

12.

What does a working capital loan help a business/MSME to fund?

a)

All of the above

b)

Long-term operations

c)

Short-term operations

d)

Investment operations

13.

What is the term used to describe the process of earning interest on both the principal amount and the previously earned interest?

a)

Deficit

b)

Saving

c)

Compounding

d)

Surplus

14.

What is the difference between the revenue generated and the cost incurred in producing goods or services known as?

a)

Loss

b)

Operating profit

c)

Net profit

d)

Gross profit