A Section 8 (Not for Profit) Company

 

NCFE

01. Suppose you put INR 1000 into a savings account with a guaranteed simple interest rate of 10% per year. How much would there be at the end of first year?

  • More than INR 1100
  • Exactly INR 1100
  • Less than INR 1100
  • Don't Know

02. Suppose you put INR 1000 into a savings account with a guaranteed compound interest rate of 10% per year. How much would there be at the end of five years?

  • More than INR 1500
  • Exactly INR 1500
  • Less than INR 1500
  • Don't Know

03. Imagine that the interest rate on your savings account is 6 percent a year and inflation is 8 percent a year. After one year, would the money in your account have more purchasing power than it does today, exactly the same or less than today?

  • More than today
  • Exactly the same
  • Less than today
  • Don't Know

04. If you currently have an income of INR 60,000 a year, and inflation is 6%, how much income will you need in 5 years time to be able to have the same living standard?

  • INR 60,000
  • Less than INR 60,000
  • More than INR 60,000
  • Don't Know

05. Before I buy something I carefully consider whether I can afford it?

  • Agree
  • Disagree
  • Neutral
  • Don't Know

06. If someone offers you the chance to make a lot of money there is also a chance that you will lose a lot of money.

  • True
  • False
  • Don't Know

07. It is less likely that you will lose all of your money if you save it in more than one place.

  • True
  • False
  • Don't Know

08. If you have a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

  • Sales tax may be charged on the interest that you earn
  • You cannot earn interest until you pass your 18th birthday
  • Earnings from savings account interest may not be taxed
  • Income tax may be charged on the interest if your income is high enough

09. Under which of the following circumstances would it be financially beneficial to borrow money to buy something now and repay it with future income?

  • When something goes on sale
  • When buying something on credit allows someone to get a much better paying job
  • When the interest on the loan is greater than the interest obtained from a savings account
  • It is always more beneficial to borrow money to buy something now and repay it with future income

10. What affects the amount of interest that you would pay on a loan?

  • Your credit rating
  • How much you borrow
  • How long you take to repay the loan
  • All of the above

11. The resources used in the production of goods and services are limited, so society must:

  • Make choices about how to use resources
  • Try to obtain additional resources
  • Reduce their use of resources
  • Don't Know

12. When deciding which of the two items to purchase, one should always:

  • Choose the item that costs less.
  • Choose the item with the greatest benefits.
  • Choose an item after comparing the costs and benefits of both items.
  • Don't Know

13. Which of the following credit card users is likely to pay the maximum amount in finance/interest charges per year, if they all charge the same amount per year on their cards?

  • Lata, who always pays off her credit card bill in full shortly after she receives it.
  • Jassi, who only pays the minimum amount each month.
  • Meghna, who pays at least the minimum amount each month and more, when she has the money.
  • Elina, who generally pays off her credit card in full but, occasionally,will pay the minimum when she is short of cash.

14. Which of the following statements is true?

  • Your bad loan payment record with one bank will not be considered if you apply to another bank for a loan.
  • If you missed a payment more than 2 years ago, it cannot be considered in a loan decision.
  • Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed.
  • People have so many loans it is very unlikely that one bank will know your history with another bank.

15. When paying taxes in India, the more money you make, _____________.

  • The less taxes you pay
  • The more taxes you pay
  • Doesn't make a difference because everyone pays the same amount in taxes
  • Don't Know

16. Do you keep copies of(either electronically or in hard copy)of your financial documents such as bank statements, tax records, receipts of major purchases, financial agreements etc.

  • Yes
  • No

17. If each of the following persons had the same amount of annual income of tax, who would meet the greatest amount of life insurance?

  • A young widow with two young children
  • A young single woman without any children
  • An elderly retired man, with a wife who is also retired
  • A young married man without children

18. Health insurance is

  • Only for those who get sick.
  • An unnecessary expense because you may not need it.
  • A must buy item for your budget.
  • More important for women than for men.

19. The stock market is an example of an institution within our economy that exists to help people achieve their economic goals. The existence of this institution:

  • Results in an increase in the price of stocks.
  • Brings people who want to buy stocks together with those who want to sell stocks.
  • Helps predict stock earnings.
  • Don't Know

20. When the central government's expenditure for a year are greater than its revenue for that year, the difference is known as:

  • National debt
  • Budget deficit
  • Budget surplus
  • Don't Know

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