1.
State whether true or false. It is usually possible to reduce the risk of investing in the stock market by buying a stock mutual fund than a single company's stock.
2.
State whether true or false. Suppose someone guarantees to double your money in 2 years. It is likely that you can also lose your money.
3.
Who among the following individuals has a greater need for buying a life insurance policy?
4.
Suppose you have invested ₹1000 in a bond that pays 6% annual coupon rate. If the interest rate increases from 6% to 8%, what will happen to your bond price?
5.
State whether true or false. A 15 years home loan usually has higher EMI than a 30 years home loan, but the total interest payable over the tenure of the loan is less.
6.
Suppose you have ₹1000 in a bank account and the interest rate is 5% per year. After 5 years, how much do you think you will have in the account?
7.
Suppose you invest ₹10,000 each year for the next 10 years, while your friend spends all his money. However, at the end of 10 years, your friend suddenly decides to invest ₹1,50,000. Assuming both of you earn 10% annual return, who will have more money at the end of 20 years?
8.
Suppose you received a call from your bank. Which of the followings they would never ask you to share?
9.
Suppose you have ₹1,00,000 in your emergency fund earning a low 5% annual interest. At the same time, you have a loan of ₹1,00,000 where you are paying an annual interest of 8%. What would you do?
10.
Suppose you have ₹1000 in a savings bank account, the interest rate is 4% per year, and the inflation is 5%. After 1 year, how much do you think you will be able to buy?
