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Multiple choice questions (1 mark)

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

Which of the following grows money faster?

a)

Simple interest

b)

Compound interest

c)

Tax-free income

d)

Fixed spending

2.

What does 72 represent in the Rule of 72?

a)

Number of years

b)

Constant for calculating doubling time

c)

Interest rate

d)

Principal amount

3.

At 8% compound interest, how long will it take for Rs. 100 to double? (Use the Rule of 72)

a)

8 years

b)

9 years

c)

10 years

d)

12 years

4.

What type of interest is calculated only on the principal amount?

a)

Compound interest

b)

Simple interest

c)

Fixed interest

d)

None of the above

5.

Calculate the compound interest on ₹18000 at 5% per annum for 2 years.

a)

₹1,800

b)

₹19, 845

c)

₹1,845

d)

₹19,000

6.

A person borrows a sum at 8% p.a. simple interest. After 5 years, he pays ₹4,000 as interest. What was the principal amount borrowed?

a)

₹8,000

b)

₹10,000

c)

₹6,000

d)

₹5,000

7.

A man borrowed ₹25,000 from a bank at 10% p.a. simple interest. What is the total interest he will pay after 4 years?

a)

₹10,000

b)

₹12,000

c)

₹8,000

d)

₹5,000

8.

A sum of ₹18,000 is borrowed at 7.5% p.a. simple interest. If the borrower pays ₹2,700 as interest, for how many years was the loan taken?

a)

1 year

b)

2 years

c)

3 years

d)

4 years

9.

Which is an incentive for saving?

a)

To buy something expensive

b)

To meet emergencies

c)

To achieve financial goals

d)

All of the above

10.

If a loan of ₹40,000 was taken at 9% per annum simple interest for 3 years, what will be the interest paid?

a)

₹10,800

b)

₹12,000

c)

₹9,000

d)

₹8,800

11.

Calculate the rate of return using the Rule of 72 when ₹500 becomes ₹1000 in 6 years.

a)

6%

b)

12%

c)

8%

d)

10%

12.

Which statement best describes the difference between simple interest and compound interest?

4 lines
13.

What does the Rule of 72 estimate?

a)

The number of years required for an investment to double by dividing 72 by the annual interest rate.

b)

The number of months required for an investment to double by dividing the principal by 72.

c)

The future value found by multiplying the rate by 72.

d)

The interest earned each year by dividing 72 by the principal.

14.

Why is it important to start saving early?

a)

It provides more time for compounding to grow savings.

b)

It guarantees zero risk on all investments.

c)

It ensures the same returns as starting later.

d)

It avoids the need for budgeting.

15.

When you buy something but do not pay for it immediately, your payment is expressed in terms of money to be paid in the future. This is an example of what function of money?

a)

Store of value

b)

Standard of Deferred Payments

c)

Medium of exchange

d)

Measure of Value

16.

Medium of exchange, store of value, and measure of value are all…

a)

Characteristics of money

b)

Functions of money

c)

Types of money

d)

Measures of money

17.
What is NOT a characteristic of money? 
a)
Divisible
b)
Portable
c)
Acceptable
d)
Accessible
18.

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

4 lines
19.

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)  

20.

The first step in creating a budget is _________.

a)

know your income

b)

determine fixed expenses

c)

determine variable expenses

d)

review periodically

21.

What does the S stand for in SMART GOALS

a)

Specific

b)

Special

c)

Standard

d)

Sports

22.

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

23.

Pavan 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%

24.

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

25.

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