SECTION - 1

QUESTION PAPER

1 Money is anything that is commonly accepted by a group of people for the exchange of goods, services, or reso
[2 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

2 Some ______ can be avoided and some can be altered.

[3 Marks]
(a) expenses
(b) income
(c) Not Attempted
Correct Aexpenses

3 ______ may be defined as the true increase in the amount of wealth which comes to a person during a fixed pe
[2 Marks]
(a) Expenditure
(b) Debit
(c) Credit
(d) Income
(e) Not Attempted
Correct AIncome

4 ____ helps bring simplicity and organization to our economy.

[1 Marks]
(a) Loans
(b) Debit
(c) Money
(d) Credit
(e) Not Attempted
Correct AMoney

5 To become an account holder with a bank, you need to fill in an account-opening form, submit necessary docum
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

6 Investments can be made at one time or at regular intervals like recurring deposit.
[3 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE
7 P.Y.F. stands for _____
[4 Marks]
(a) pay your family
(b) pay yourself first
(c) Not Attempted
Correct Apay yourself first

8 The ______ is a simplified way to determine how long a saving will take to double, given a rate of interest.
[1 Marks]
(a) Rule of 73
(b) Rule of 72
(c) Rule of 74
(d) Rule of 75
(e) Not Attempted
Correct ARule of 72

9 A _______ helps you to prevent reckless spending.

[3 Marks]
(a) statement
(b) balance sheet
(c) note
(d) budget
(e) Not Attempted
Correct Abudget

10 Earliest examples of money are the _____ which refers to one of many ancient units of weight, used in the anci
[1 Marks]
(a) pebbles
(b) shekels
(c) shells
(d) stones
(e) Not Attempted
Correct Ashekels

11 Interest allows your money to grow and become more than what you originally saved.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

12 ______ is the process of defining goals, developing a plan to achieve them and putting the plan into action.
[1 Marks]
(a) Civic Planning
(b) Economic Planning
(c) Financial Planning
(d) Social Planning
(e) Not Attempted
Correct AFinancial Planning

13 _______ expense is an expense where we can have better control.

[3 Marks]
(a) Non Discretionary
(b) Discretionary
(c) Not Attempted
Correct ADiscretionary

14 A _____ is a plan for managing money during a given period of time.

[1 Marks]
(a) budget
(b) loan
(c) credit
(d) borrowing
(e) Not Attempted
Correct Abudget

15 Money allows us to meet the household expenses.

[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

16 Ox-shaped bars of copper seem to have functioned as _____ in the Bronze Age in eastern Mediterranean.
[1 Marks]
(a) stocks
(b) money
(c) Not Attempted
Correct Amoney

17 The goal set must be reachable for you. If it is not reachable you cannot attain your goal.
[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

18 If Rs. 200 was deposited for 1 year at a 10% interest rate per year, the interest would be Rs. ____ .
[1 Marks]
(a) 20
(b) 30
(c) 40
(d) 50
(e) Not Attempted
Correct A20
19 Specialisation means - rather than trying to do everything independently, people begin to specialize, perhaps in
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

20 Short term investments are known as ________.

[3 Marks]
(a) lending
(b) speculation
(c) trading
(d) borrowing
(e) Not Attempted
Correct Aspeculation

21 ______ is storing money safely like putting cash in a bank or locker in your house or purse etc. to meet upcomin
[3 Marks]
(a) Collecting
(b) Saving
(c) Postponing
(d) Accumulating
(e) Not Attempted
Correct ASaving

22 If there are time bound ______ eg. studying for examinations, you know that time available to you is limited to
[4 Marks]
(a) dreams
(b) ideas
(c) interest
(d) goals
(e) Not Attempted
Correct Agoals

23 In simple terms, if we don't have ____, we will find it difficult to progress.

[4 Marks]
(a) goals
(b) a bike
(c) friends
(d) a car
(e) Not Attempted
Correct Agoals

24 If you save Rs. 100 today how fast will that amount become Rs. 200? It depends on what is the compound inter
[1 Marks]
(a) Rule of 75
(b) Rule of 72
(c) Rule of 74
(d) Rule of 73
(e) Not Attempted
Correct ARule of 72

25 Income is the money earned, whether from salary, business, profession, letting a property, sale of assets, gifts, i
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

26 When you are given money to fulfil all your stationary requirements, if you spend that money for some other pu
[4 Marks]
(a) beneficial
(b) timely
(c) wasteful
(d) fruitful
(e) Not Attempted
Correct Awasteful

27 ______ is simply setting aside money to spend later.

[4 Marks]
(a) Borrowing
(b) Saving
(c) Not Attempted
Correct ASaving

28 The most important standard for anything to serve as money is ¿ it must be readily acceptable.
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

29 For a salaried person a loan is deducted in Equated Monthly Installments (EMI).

[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

30 _____ simply increase the quality of living.

[2 Marks]
(a) Wants
(b) Needs
(c) Not Attempted
Correct AWants
31 Money has a function, as a ______.
[2 Marks]
(a) destroyer of value
(b) keeper of value
(c) store of value
(d) creator of value
(e) Not Attempted
Correct Astore of value

32 It is rare that every one have enough money to spend on all our wants.
[4 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

33 Employment of funds in financial or real assets is _____.

[3 Marks]
(a) Investing
(b) Saving
(c) Withholding
(d) Accumulating
(e) Not Attempted
Correct AInvesting

34 Throughout history, societies have used various items as the medium of exchange, everything from salt to gold.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

35 Banks pay the depositor (also called account holder) a(n) _____ in return for depositing the money.
[2 Marks]
(a) dividend
(b) interest
(c) Not Attempted
Correct Ainterest

36 A ____ is a place where someone can deposit money for saving and safe-keeping and withdraw it when necessa
[2 Marks]
(a) store-room
(b) locker
(c) bank
(d) school
(e) Not Attempted
Correct Abank
37 The Sanskrit word rupyakam means coin of ______.
[1 Marks]
(a) gold
(b) silver
(c) Not Attempted
Correct Asilver

38 The ______ gives a record of all the transactions that have been made in your account.
[1 Marks]
(a) pass book
(b) deposit slip
(c) Not Attempted
Correct Apass book

39 ____ is the exchange of a good or service for another good or service, a bag of rice for a bag of wheat.
[1 Marks]
(a) Credit
(b) Barter
(c) Charter
(d) Debit
(e) Not Attempted
Correct ABarter

40 People define needs and wants differently (and that's okay!), depending on their own values. Your values are si
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

41 Budgets are made by governments as well as families.

[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

42 The interest is the amount paid by the borrower to the bank for availing the loan and is usually a fixed percenta
[2 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

43 Compound interest is paid on the original principal and on the accumulated past interest.
[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

44 Current accounts are generally opened by businessmen, companies.

[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

45 _______ is the amount you earn for working at the office for a certain period.
[1 Marks]
(a) Business income
(b) Salary income
(c) Not Attempted
Correct ASalary income

46 The more aware of your values you are, the easier it is to set goals that will make your life satisfying and enjoya
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

47 On your next birthday you may decide you wish to buy a new cricket bat, go for a movie or simply throw a party
[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

48 ______ is useful in our day to day lives.

[2 Marks]
(a) Stocks
(b) Eating out
(c) Watching movies
(d) Money
(e) Not Attempted
Correct AMoney

49 A ______ is an instrument used for banking transactions.

[1 Marks]
(a) salary slip
(b) budget
(c) cheque
(d) balance sheet
(e) Not Attempted
Correct Acheque

50 Disposable income comes from the salary you earn, the business income if you are a businessman, gifts of mone
[2 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

51 Rather than spending money today, you can ____ it for the future.
[1 Marks]
(a) borrow
(b) save
(c) waste
(d) spend
(e) Not Attempted
Correct Asave

52 A ____ is a destination, something you want or need, which you acquire by taking certain steps. It gives directio
[1 Marks]
(a) motive
(b) thought
(c) path
(d) goal
(e) Not Attempted
Correct Agoal

53 Taxes are fees placed on income, property, or goods to support government programs.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

54 A good financial plan distinguishes between needs and wants.

[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

55 In modern societies today, coins and paper money are the most commonly used forms of money.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE
of goods, services, or resources.

a person during a fixed period of time.

m, submit necessary documents, like copies of address proof, identity proof along with photographs etc.
ven a rate of interest.

of weight, used in the ancient kingdom of Babylon.

g the plan into action.

tern Mediterranean.

be Rs. ____ .
in to specialize, perhaps in house building, or clothing or food production.

urse etc. to meet upcoming expenses.

ailable to you is limited to cover the syllabus, hence you make a schedule and study accordingly to complete the syllabus.

hat is the compound interest you are earning on the saving and by a factor called as the _____.
perty, sale of assets, gifts, interest on deposits or any other source.

t money for some other purpose, it is ______.

erything from salt to gold.

ng the money.

withdraw it when necessary.

r a bag of wheat.

values. Your values are simply the beliefs and practices in your life that are very important to you.

is usually a fixed percentage of the amount borrowed.

r life satisfying and enjoyable.

vie or simply throw a party for your friends at home. These are your 'personal goals' on your birthday.
 businessman, gifts of money you may get on some occasions like your birthday etc.

tain steps. It gives direction to your plan of action.

ms of money.
the syllabus.
 SECTION - 1
QUESTION PAPER

1 Employment of funds in financial or real assets is _____.

[3 Marks]
(a) Saving
(b) Withholding
(c) Accumulating
(d) Investing
(e) Not Attempted
Correct AInvesting

2 To become an account holder with a bank, you need to fill in an account-opening form, submit necessary documen
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

3 ______ allows us to satisfy our needs and wants.

[2 Marks]
(a) Our wishes
(b) Our desires
(c) Our beliefs
(d) Money
(e) Not Attempted
Correct AMoney

4 A _____ is a plan for managing money during a given period of time.

[1 Marks]
(a) budget
(b) loan
(c) credit
(d) borrowing
(e) Not Attempted
Correct Abudget

5 Short term investments are known as ________.

[3 Marks]
(a) speculation
(b) trading
(c) lending
(d) borrowing
(e) Not Attempted
Correct Aspeculation
6 By dividing 72 by the rate of interest, you can get a rough estimate of how many years it will take for the initial savi
[2 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

7 Throughout history, societies have used various items as the medium of exchange, everything from salt to gold.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

8 Fixed expenses are regular expenses and you need to pay them by setting aside the required amount from your inc
[4 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

9 On your next birthday you may decide you wish to buy a new cricket bat, go for a movie or simply throw a party for
[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

10 Savings bank accounts encourage persons to save money on a regular basis.

[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

11 ________ enables the customer to withdraw cash from his/her bank account.
[2 Marks]
(a) Deposit slip
(b) Withdrawal slip
(c) Not Attempted
Correct AWithdrawal slip

12 If you save Rs. 100 today how fast will that amount become Rs. 200? It depends on what is the compound interest
[1 Marks]
(a) Rule of 72
(b) Rule of 74
(c) Rule of 75
(d) Rule of 73
(e) Not Attempted
Correct ARule of 72

13 Cash is to personal financial planning as petrol is to your moped or scooter.

[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

14 A ______ is an instrument used for banking transactions.

[1 Marks]
(a) salary slip
(b) balance sheet
(c) cheque
(d) budget
(e) Not Attempted
Correct Acheque

15 Money is anything that is commonly accepted by a group of people for the exchange of goods, services, or resource
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

16 ______ is essential for your success in life.

[1 Marks]
(a) Planning
(b) Borrowing money
(c) Going out with friends
(d) Watching the latest movies
(e) Not Attempted
Correct APlanning

17 ______ is the first step to investments.

[3 Marks]
(a) Collecting
(b) Accumulating
(c) Saving
(d) Withholding
(e) Not Attempted
Correct ASaving

18 Specialisation means - rather than trying to do everything independently, people begin to specialize, perhaps in hou
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

19 ______ is the process of defining goals, developing a plan to achieve them and putting the plan into action.
[1 Marks]
(a) Civic Planning
(b) Social Planning
(c) Economic Planning
(d) Financial Planning
(e) Not Attempted
Correct AFinancial Planning

20 For a salaried person a loan is deducted in Equated Monthly Installments (EMI).

[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

21 The Sanskrit word rupyakam means coin of ______.

[1 Marks]
(a) silver
(b) gold
(c) Not Attempted
Correct Asilver

22 _____ is 'money coming in'.

[1 Marks]
(a) Expense
(b) Income
(c) Not Attempted
Correct AIncome

23 The goal set must be reachable for you. If it is not reachable you cannot attain your goal.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

24 ______ Goals are always achieved.

[4 Marks]
(a) SMART
(b) DIFFICULT
(c) SIMPLE
(d) REAL
(e) Not Attempted
Correct ASMART

25 Breaking down long term goals into a number of short term goals helps us to achieve our long term goals.
[4 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

26 One of the critical activities to achieve the financial goal is to prepare a ______ as to how you propose to allocate y
[3 Marks]
(a) statement
(b) balance sheet
(c) budget
(d) note
(e) Not Attempted
Correct Abudget

27 A household _______ is a financial plan in which you allocate the family earnings towards various expenses and sav
[3 Marks]
(a) statement
(b) note
(c) budget
(d) balance sheet
(e) Not Attempted
Correct Abudget

28 In modern societies today, coins and paper money are the most commonly used forms of money.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

29 Money has a function, as a ______.

[2 Marks]
(a) creator of value
(b) destroyer of value
(c) keeper of value
(d) store of value
(e) Not Attempted
Correct Astore of value

30 ______ help us to be focused and work out a plan to achieve them.

[4 Marks]
(a) Goals
(b) Ideas
(c) Interest
(d) Dreams
(e) Not Attempted
Correct AGoals

31 Banks pay the depositor (also called account holder) a(n) _____ in return for depositing the money.
[2 Marks]
(a) interest
(b) dividend
(c) Not Attempted
Correct Ainterest

32 ____ is the exchange of a good or service for another good or service, a bag of rice for a bag of wheat.
[1 Marks]
(a) Credit
(b) Barter
(c) Debit
(d) Charter
(e) Not Attempted
Correct ABarter

33 ______ was used as money during early societies in Europe.

[1 Marks]
(a) Stones
(b) Salt
(c) Pebble
(d) Shell
(e) Not Attempted
Correct ASalt

34 Budgets are made by governments as well as families.

[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

35 _______ have set amounts and are the exact amount incurred every time not depending on usage or consumption.
[4 Marks]
(a) Fixed expenses
(b) Variable expenses
(c) Not Attempted
Correct AFixed expenses

36 ______ is the income after subtracting the deductions allowed under the provisions of Income Tax Act.
[2 Marks]
(a) Net income
(b) Gross income
(c) Not Attempted
Correct ANet income

37 The goal set by you must be realistic. It means the goal set by you should have possibility of realisation. If it is not p
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

38 _______ can be termed as disposable income (income after taxes) minus spending.
[1 Marks]
(a) Expenses
(b) Savings
(c) Not Attempted
Correct ASavings

39 Interest allows your money to grow and become more than what you originally saved.
[1 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE

40 The ______ is a simplified way to determine how long a saving will take to double, given a rate of interest.
[1 Marks]
(a) Rule of 72
(b) Rule of 73
(c) Rule of 75
(d) Rule of 74
(e) Not Attempted
Correct ARule of 72

41 Money must be _______ into usable quantities or fractions.

[1 Marks]
(a) spendable
(b) lendable
(c) savable
(d) divisible
(e) Not Attempted
Correct Adivisible

42 Rather than spending money today, you can ____ it for the future.
[1 Marks]
(a) waste
(b) borrow
(c) save
(d) spend
(e) Not Attempted
Correct Asave

43 Taxes are fees placed on income, property, or goods to support government programs.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

44 If Rs. 300 was deposited for 1 year at a 10% interest rate per year, the interest would be Rs. ____ .
[1 Marks]
(a) 50
(b) 40
(c) 30
(d) 60
(e) Not Attempted
Correct A30

45 ______ is required for sending you to school, for buying books, your clothes.
[1 Marks]
(a) Borrowing
(b) A loan
(c) Credit
(d) Money
(e) Not Attempted
Correct AMoney
46 When you are given money to fulfil all your stationary requirements, if you spend that money for some other purpo
[4 Marks]
(a) timely
(b) fruitful
(c) beneficial
(d) wasteful
(e) Not Attempted
Correct Awasteful

47 Current accounts are generally opened by businessmen, companies.

[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

48 A ____ is a destination, something you want or need, which you acquire by taking certain steps. It gives direction to
[1 Marks]
(a) goal
(b) thought
(c) motive
(d) path
(e) Not Attempted
Correct Agoal

49 Not spending money on unwanted things is a 'value' a person must have.

[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

50 People define needs and wants differently (and that's okay!), depending on their own values. Your values are simpl
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

51 Money should have a form which is simple and easy to save and not a commodity like apple or an orange which can
[2 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct ATRUE
52 A _______ enables you to track as to how you propose to allocate the money that you have.
[3 Marks]
(a) note
(b) statement
(c) balance sheet
(d) budget
(e) Not Attempted
Correct Abudget

53 Some people plan well and have the rewards that go with it nicer cars, comfortable homes, savings, fun vacation tri
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE

54 Non economical spending is when _____ is not realised.

[3 Marks]
(a) gain
(b) profit
(c) value of money
(d) money
(e) Not Attempted
Correct Avalue of money

55 In a fixed deposit, the depositor invests a lump sum amount with the bank for a predetermined period.
[2 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct ATRUE
m, submit necessary documents, like copies of address proof, identity proof along with photographs etc.
s it will take for the initial saving to double itself.

erything from salt to gold.

equired amount from your income.

vie or simply throw a party for your friends at home. These are your 'personal goals' on your birthday.

hat is the compound interest you are earning on the saving and by a factor called as the _____.
of goods, services, or resources.
in to specialize, perhaps in house building, or clothing or food production.

g the plan into action.

 our long term goals.

how you propose to allocate your earnings.

ards various expenses and savings.

ms of money.
ng the money.

r a bag of wheat.
ding on usage or consumption.

of Income Tax Act.

ility of realisation. If it is not possible to do a particular thing, all your efforts will go in vain.

ven a rate of interest.

be Rs. ____ .
t money for some other purpose, it is ______.

tain steps. It gives direction to your plan of action.

values. Your values are simply the beliefs and practices in your life that are very important to you.

e apple or an orange which can get spoilt after sometime and lose their store value.
omes, savings, fun vacation trips. Other people never learn to plan, and never seem to have enough money.

etermined period.