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Financial Literacy Course for Bharat Exam Answers Online
Financial literacy is a universal necessity for individuals seeking to enhance their financial acumen and secure their financial future. It is the cornerstone of sound financial decision-making.
It encompasses understanding various financial instruments, managing finances effectively, planning for the future, assessing risks, and grasping the dynamics of the financial landscape.
At NISM we aim to empower the next generation with financial skills ensuring they enter adulthood equipped to make informed financial decisions, regardless of academic background.
That is why we have developed this Financial Literacy course.
Our course is meticulously designed to provide learners with the essential knowledge and skills required to navigate the complex world of finance. In an era where financial decisions impact every aspect of our lives, understanding financial principles is not just advantageous but crucial for personal and professional success.
With over 20 hours of engaging video content, our course offers the learners with the knowledge and skills they need to thrive in today’s financial environment.
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Quiz 1: Money and Transactions
Financial Literacy Course for Bharat Module 1.4: Financial Records and Contracts Quiz 1: Money and Transactions
According to Banking regulatons, Registers and records of cheques & vaults need to be preserved for
5 years
7 years
10 years
2 years
Answer. 5Years
The following is an instrument of investment
Cash in Locker (bank)
Loan to wife
Government Bond
Savings deposit balance
Answer. Government Bond
The Rule of 72 states that to Double your money in X years you will need to
Divide 72 by rate
Multiply 72 by rate
Multiply 72 by years
Divide 72 by years
Answer. Divide 72 by rate
For the following soiled notes FULL value will be payable for the surrendered portion
Rs 1,2,5,10,20 greater than 50% of the undivided area
Rs 50, 100, less than 40% of the undivided area surrendered
Rs 50, 100, 55% of the undivided area surrendered
Rs 1,2,5,10,20 less than 50% of the undivided area surrendered
Answer. Rs 1, 2, 5, 10, 20 greater than 50% of the undivided area
The following is an advantage of Farming activity
Weather pattern
Crop Demand / Supply
Small Scale Operation
Freedom in decision making
Answer. Freedom in decision making
Which of the following is NOT a significant factor in financial Literacy in the 21st century
Complex financial products
Prevalence of Fraudulent schemes
Deregulation of policies
Government Schemes
Answer. Deregulation of policies
State whether the following statement are correct Statement 1: NACH Mandates are submitted by customer to money collecting agency for debit to bank accounts Statement 2: NACH mandates requires customer authorization for every transaction for payment
Both 1 & 2 are Correct
Both 1 & 2 are Wrong
Statement 1 is wrong but Statement 2 is correct
Statement 1 is Correct but Statement 2 is Wrong
Answer. Statement 1 is Correct but Statement 2 is Wrong
Financial Literacy enables to manage one\’s own ____in a prudent manner
Personal Ambition
Personal Finance
Personal Goals
Personal Health
Answer. Personal Finance
KYC stands for
Know your Custodian
Keep your Customer
Know your Cost
Know your Client
Answer. Know Your Client (KYC)
A piece of Metal/Shell/Paper has to be declared as legal tender by __
United Nations
Government
Municipality
Commercial Bank
Answer. Government
Of the 20 identified traits in behaviour finance the following is NOT among them
Procrastination
Self Actualization
Loss Aversion
Herd Mentality
Answer. Self-Actualization
The following is NOT post retirement Investment product
FD
Annuity
EPF
Reverse Mortgage
Answer. EPF
All are active income EXCEPT
Salary
Agricultural Income
Profit from business
Pension
Answer. Pension
The following are passive income EXCEPT
Rental Income
Interest from FD
Income from business / profession
Dividends
Answer. Income from business/profession
NEFT Stands for
National Electronic Funds Transfer
National Electric Funds Transfer
Notional Electronic Funds Transfer
National Electric Funds Transaction
Answer. National Electronic Funds Transfer
Acronym of BRBNMPL
Bharatiya Reserve Bank Note Mudran Pvt Ltd
Bharatiya Restricted Bank Note Mahavitaran Pvt LTd
Bharatiya Reserve Bank Note Mahavitaran Pvt LTd
Brihan Reserve Bank Note Mudran Pvt Ltd
Answer. Bharatiya Reserve Bank Note Mudran Pvt Ltd
The following is NOT a method a payment for a product or service availed
Cash
NEFT
Contract
Cards (prepaid/credit)
Answer. Contract
The following is NOT a characteristic of Inflation
Rising Prices
Falling prices
Reducing purchasing power
Lower value of money
Answer. Falling prices
NACH Stans for
National Automated Clearing House
National Automated Cleaning House
Notional Automatic Clearing Home
National Automatic Clearning House
Answer. National Automated Clearing House
The following cannot be classified as Income
Rent from property
Pension
Gift from brother
Royalty from literary work
Answer. Gift from brother
Quiz 2: Managing Your Finances
Financial Literacy Course for Bharat Module 2.5: Debt and Debt Management Quiz 2: Managing Your Finances
What is true w.r.t review for change in interest rate of PPF
fixed for ever
interest rate reviewed every year
interest rate reviewed every quarter
interest rate reviewed on 1st of every month
Answer. interest rate reviewed every quarter.
With every EMI payment made
both interest amount and principal is always constant
both interest amount and principal decreases
interest amount decreases and principal amount paid increases
interest amount increases and principal amount paid decreases
Answer. Interest amount decreases and principal amount paid increases
Revolving credit is also called
closed ended credit
open ended credit
interval period credit
none of these
Answer. Open-ended credit
Advantages of SIP is
timing the market
rupee cost addition
discipline way of investment
power of simple rate of return
Answer. Disciplined way of investment
If the nominal rate of return is 7%,inflation is 5%, real rate of return is
2.00%
1.90%
7.00%
5.00%
Answer 1.90%
Which is most beneficial in case of investment
The earliest you invest, the more you get
The earliest you invest, it does not matter
The later you invest, the more you get
Whenever you invest, it makes no difference
Answer. The earliest you invest, the more you get
In fixed principal payment
Monthly payment is fixed
Interest amount is fixed
outstanding loan amount does not decreases
principal amount to be paid is fixed
Answer. Principal amount to be paid is fixed
Which statement is correct w.r.t inflation
Both notional and real rate of return are always positive
Notional rate of return always positive and real rate of return can be positive or negative
Both notional and real rate of return can be either positive or negative
Notional rate of return always positive and real rate of return always negative
Answer. Notional rate of return always positive and real rate of return can be positive or negative.
Which risk is not associated with debt mutual fund
price volatility risk
credit risk
interest rate risk
reinvestment risk
Answer. price volatility risk
Investor is in 30% tax bracket, Investment return is 9% .what is net of tax return
9%
6.30%
8.70%
6.92%
Answer. 6.30%
Which is correct financial equation for financial well being
Earning = Spending .No Saving and Investment
Earning > Spending = Saving —> Investment
Earning < Spending .Borrowing Earning > Spending = Saved money not invested
Answer. Earning > Spending = Saving —> Investment
Volatility in equities happen because of
interest rate risk
credit risk
inflation risk
price risk
Answer. Price risk
Compounding works best when (1)Period of investment is long (2) rate of return is high ( c) frequency of compounding is more
1 and 2
2 and 3
1,2,3
1 and 3
Answer. 1,2,3
Which investment option is in mid segment of risk pyramid
Options
Equity mutual fund
Government bond
Bank accounts
Answer. Equity mutual fund
For what purpose better not to take loan
Asset creation ( Home loan)
Will be a type of investment (education loan for child)
loan for business
Going for vacation with friends
Answer. Going for vacation with friends
What should be the ideal total emi/total income ratio for better debt management
25%
50 %
< 5%
< 25%
Answer. < 25%
What is the excellent credit score as per CIBIL
250
450
650
900
Answer. > 650
Which rule tells about doubling of mone
Rule of 115
Rule of 172
Rule of 72
Rule of 144
Answer. Rule of 72
What is the advantage of power of compounding
Money grows due to simple return
money grows but slowly
money grows in linear form
money grows more due to compounded return
Answer. Money grows more due to compounded return
Which statement is correct w.r.t flat rate loan
Interest rate is not fixed
Interest on entire loan amount
A bit more cheaper
Not easy to track and calculate
Answer. Interest on entire loan amount
Quiz 3: Financial Planning
Financial Literacy Course for Bharat Module 3.3: Retirement Planning Quiz 3: Financial Planning
Budgeting does not taken in account
Expenses relating to present Needs
Future Wants
Non Cash Expenses
Expenses relating to present wants
Answer. Non Cash Expenses
Which among the following is not a financial goal?
Buying a house worth Rs. 1 cr (present cost) in 5 to 6 years
Accumulating a retirement corpus of Rs. 4 cr in next 12 years
A family vacation during coming summer holidays, which may cost close to Rs. 2 lacs
Changing the job with a 40% salary hike
Answer. Changing the job with a 40% salary hike
For Short term goals, investment strategy should be
Capital Protection
investing in medium to high risk investment
take no action, let funds remain lie idle
Save maximum taxes
Answer. Capital Protection
Jatin\’s stays in Mumbai in his owned house, His present age is 37 and he plans to retire @ age of 55 years. He has sufficient medical insurance. He expects his monthly expenses after retirement to be INR 1,25,000/- . He assumes his life span as 80 years. What is the retirement corpus he should aim for ?
(Ignore Inflation and Investment)
INR 3.25 crore
INR 3.75 crore
INR 3.95 crore
INR 4.20 crore
Answer. INR 3.75 crore
Simran is confused on retirement corpus calculation. She intends to live in rural area. So for the purpose of calculation of retirement corpus, if Simran does not own a home nor has insurance then how much additional expenses should be considered
Additional 30 %
Calculations don’t change as formulas remain constant
Additional 10% rent expenses and 15 % for insurance
Additional 15% for rent and 10% for insurance
Answer. Additional 10% rent expenses and 15% for insurance
Parkinson’s law states
Work Expands to fill the time available
Time Expands to allow completion of work
More the efforts, More the time taken
Work and time have no co-relation
Answer. Work expands to fill the time available
Financial Goals must possess the feature of being
Trendy
Futuristic
Being Dynamic
Smart
Answer. Smart
The combination of Parkinson’s law and Procrastination impacts
Long term goals
Short term goals
Both – Long Term and Short Term Goals
Neither – Long Term or Short Term Goals
Answer. Both – Long Term and Short Term Goals
Steps to Financial planning include
Goal prioritisation
Estimating amount required for each goal
Goal identification
All of a, b, c
Answer. All of a, b, c
Emergency funds are
Funds created urgently
are not important in financial planning
to meet unplanned and uncertain expenses
to meet medical expenses in particular
Answer. To meet unplanned and uncertain expenses
Good financial planning ensures
More luxury in life
Good social status
Short and long term stability
Ability to travel more
Answer. Short and long term stability
Pension is sufficient for life post retirement phase for everyone retiring
Agree, since the core purpose of pension is to receive money post retirement
Disagree as many private companies do not have retirement benefits
Disagree, because money is never enough
Agree, looking standard practice for many years
Answer. Disagree as many private companies do not have retirement benefits.
Retirement planning should begin at the age of
55 years so that in 5 years sufficient retirement corpus can be accumulated
60 years since that is usually the age to retire
25 years since by then one is expected to start earning
around 35 years is usually when one can start planning for retirement
Answer. 25 years since by then one is expected to start earning
Budgeting means balancing
Taxes and wealth creation
Inflow and outflow of funds
the unnecessary expenses and taxes
Income and Taxes
Answer. Inflow and outflow of funds
The first step of financial planning is
Budgeting
Cutting down expenses
Goals Setting
Investing
Answer. Goal Setting
Savings Ratio is
Monthly Savings /Monthly expenses
Monthly Savings / Monthly income
Monthly income/ Monthly expenses
Income / Savings
Answer. Monthly Savings / Monthly Income
Inflation
reduces the need for investing
reduces the purchasing power
increases the purchasing power
boosts the returns on investment out of our savings
Answer. Reduces the purchasing power
For achieving long term goals, the most important factor is
Knowing Inflation continuously
Consistently Controlling Random Expenses
Consistent investing
Consistently understanding market trends
Answer. Consistent Investing
Important assumptions for Retirement Planning are
Compounding and Investments value at retirement
Life Expectancy and Compounding
Inflation and Compounding
Life Expectancy, inflation and returns on retirement coprus
Answer. Life Expectancy, Inflation, and Returns on Retirement Corpus
Goal Time Frame Estimation is
the 3rd Step of financial goal setting process
No important for financial planning
The fourth step in the process of financial goal setting
means calculation how time it took to achieve a previous goal
Answer. The 3rd Step of the Financial Goal Setting Process
Quiz 4: Risk and Reward
Financial Literacy Course for Bharat Module 4.3: Balancing Risk and Reward Quiz 4: Risk and Reward
- Question
Which of the following is External Risk? Credit Risk
Liquidity Risk
Inflation Risk
Company Risk
ans. Inflation Risk - Question
Who is Nominee in Policy? Person to receive policy money in the event of his death within policy tenure
Person to whom to transfer rights for reasons like availing loan
Person who will receive Maturity Benefits
Entitled to receive distributions from a trust, will or life insurance policy
ans. Person to receive policy money in the event of his death within policy tenure - Question
“Protection for a set period of time. No benefit is normally payable if the life assured survives”. Which type of Insurance Policy is this? Whole Life Policy
Annuity Plan Policy
Money Back Policy
Term Insurance Policy
ans. Term Insurance Policy - Question
Mr. Ram is 30 year old employee. He is planning his retirement. While calculating Retirement Corpus, he thinks his life style will remain the same as it is today. Which of the behavioural biases is he affected with? Projection Bias
Herd Mentality
Gambler\\’s Fallacy
Overconfidence Bias
ans. Projection Bias - Question
Which policy is ideal way to create an estate for heirs? Whole Life Policy
Annuity Plan Policy
Money Back Policy
Term Insurance Policy
ans. Whole Life Policy - Question
Which statistical technique is helpful in management of Risk? Covariance
Standard Deviation
Weighted Average
Median
ans. Standard Deviation - Question
Which of the following are market risks? Commodity Risk
Currency Risk
Interest Rate Risk
Inflation Risk
ans. Commodity Risk - Question
If Loan is taken for Asset Creation, which of the following Risk investor is exposed to? Leverage Risk
Market Risk
Credit Risk
Inflation Risk
ans. Leverage Risk - Question
Standard Deviation of Stocks A, B, C and D are 10.3, 5.7,3.4 and 20.4 respectively. Which is the least risky of all the four stocks? A
B
C
D
ans. C - Question
How much percentage of your monthly income should EMI be within? 40%
10%
25%
50%
ans. 40% - Question
Following is example of Pure Risk. Stock investment
BB rated Fixed Deposit
Car Accident
Loan given to Friend
ans. Car Accident - Question
Which of the following are parameters for Risk Capacity? Risk Appetite
Age
Networth
Education
ans. Networth - Question
What is Pre-Defined benefit that the insurer pays to the policy holder in case the insured event takes place? Premium
Sum Assured
Surrender Value
Reinstatement
ans. Sum Assured - Question
Which is the mitigation strategy for Liquidity Risk? Invest in Government Securities
Avoiding investment in Stock Market
Investing in AAA rated financial products
Planning cash flow needs and mapping the cash flow needs to investment tenures
ans. Planning cash flow needs and mapping the cash flow needs to investment tenures - Question
Hemant has received Rs 50000 as Diwali bonus. He is searching for investment avenues for investment for 5 years. His friend suggests Fixed deposit in ABC Credit Society with interest @9% as against in a Nationalised Bank which is offering 7.5% interest p.a. Which Risk Hemant may face if he invests in ABC Credit Society? Liquidity Risk
Inflation Risk
Credit Risk
Market Risk
ans. Credit Risk - Question
How much Sum Assured should be taken for Life insurance? As mandated by Law
Atleast 150 times of Monthly Income
At least One year Salary
Maximums Rs 50 L
ans. Atleast 150 times of Monthly Income - Question
Phishing Risk is associated with which type of Financial Product? Loan Product
Investment Product
Insurance Product
Payment Product
ans. Payment Product - Question
Which type of Risks are covered by Insurance Companies? High Impact Low Frequency
Low Impact High Frequency
Low Impact Low Frequency
High Impact High Frequency
ans. High Impact Low Frequency - Question
Which is the mitigation strategy for Market Risk? Averaging
Make One time investment
Avoid Market related investments
Invest for short term goals
ans. Averaging - Question
Which is the Risk Management Strategy for High Impact High Frequency Risks? Risk Transfer
Risk Retention
Risk Avoidance
Risk Reduction
ans. Risk Avoidance
Quiz 5: Financial Landscape
Financial Literacy Course for Bharat Module 5.5: Scams and Frauds Quiz 5: Financial Landscape
Question
When you get a call from someone claiming to be from your bank, and asks for your credit card no, cvv no. and credit card PIN, you should immediately share the details
true
false
ans.false
- Question
The credit policy of Reserve Bank of India is also known as __ Monetary policy
Fiscal policy
Export policy
Liquidity management policy
ans. Monetary policy - Question
Among which of the following products eligible under Section 80C offers tax-free interest income? Public Provident Fund (PPF)
Equity Linked Savings Scheme (ELSS)
Tax saver fixed deposit
Life insurance policy
ans. Life insurance policy - Question
Which of the following investments carry high risks but also have the potential to generate high returns and thus create wealth over long term? Equity mutual funds
Bank deposits
Liquid mutual funds
Health insurance
ans. Equity mutual funds - Question
Which product was introduced when the government employees were shifted from “defined benefit system” to “defined contribution system”? Employees’ Provident Fund (EPF)
Public Provident Fund (PPF)
Government Provident Fund (GPF)
National Pension Scheme (NPS)
ans. National Pension Scheme (NPS) - Question
In which category did the Indians scored the lowest in the Standard and Poor\’s global financial literacy survey? Risk diversification
Inflation
Interest
Compound interest
ans.Risk diversification - Question
Which income tax form contains summary of all taxes that have been deducted and credited to the respective PAN? Form 16
Form 16A
Form 26AS
ans. Form 26AS - Question
What is the objective of investing in National Pension Scheme? To accumulate savings towards meeting post retirement expenses
To generate regular income during retirement years
To provide easy liquidity at all times during retirement
To provide highest tax-free income when needed
ans. To accumulate savings towards meeting post retirement expenses - Question
In case of a grievance, an insurance policy holder can approach the insurance ombudsman only if the amount of claim including expenses is _ Less than Rs. 20 lacs
More than Rs. 20 lacs
Irrespective of the amount invoiced
Insurance ombudsman scheme is for the insurance agents and not the insurance customers
ans. Less than Rs. 20 lacs - Question
Which among the following is not a secured loan? Home loan
Personal loan
Vehicle loan
ans. Personal loan - Question
Which among the following offers a fixed interest for the term of the investment? Debt mutual funds
Liquid mutual funds
Bank deposits
Fixed income mutual funds
ans. Fixed income mutual funds - Question
Which regulatory authority is vested with the responsibility of issuance of currency in India? Reserve Bank of India
Securities and Exchange Board of India
Insurance Regulatory and Development Authority of India
Pension Fund Regulatory and Development Authority of India
ans. Reserve Bank of India - Question
Where would you file a complaint against your demat service provider? Banking ombudsman
IGMS portal
CRA call centre
SCORES portal
ans. SCORES portal - Question
Which among the following is not a role of Securities and Exchange Board of India? Investor protection
Regulation of intermediaries in the securities markets
Curbing inflation
Prevention of malpractices in the securities markets
ans. Curbing inflation - Question
In order to avoid losing personal data, which of the following practices is a must? Downloading free movie or music files
Always using public wifi, especially while doing your banking transaction
Not clicking on any link asking for your personal data that you have received through email claiming to offer you a job
Clicking on any link asking for your personal data that you have received through email claiming to offer you a job in a reputed company
ans. Not clicking on any link asking for your personal data that you have received through email claiming to offer you a job - Question
What is the course of action available with a banking customer in case one is not satisfied with the resolution of one\’s complaint by the erring bank? One can approach Securities and Exchange Board of India through SCORES portal
One can file a complaint with Insurance Regulatory and Development Authority of India through the IGMS portal
One can approach Banking Ombudsman, whose names are available on the website of Reserve Bank of India
There is no recourse available once the bank has given an answer
ans. One can approach Banking Ombudsman, whose names are available on the website of Reserve Bank of India - Question
The fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords, and credit card numbers online is known as _ Phishing
Scamming
Spamming
Hacking
ans. Phishing - Question
Who implements the monetary policy? Government of India
Reserve Bank of India
Finance Secretary of India
Securities and Exchange Board of India
ans. Reserve Bank of India - Question
In the Standard and Poor\’s global financial literacy survey, which age group exhibited the lowest levels of financial literacy? 15 to 35 years
36 to 50 years
51 to 65 years
Above 65 years
ans. Above 65 years - Question
Which of the following is not one of the rights mentioned in the Charter for Customer Rights for the banking customers? Right to fair treatment
Right to highest interest rates on the bank deposits
Right to privacy
Right to suitability
ans. Right to highest interest rates on the bank deposits