Types of Investments and Understanding Profitability

Q. Provident funds are a type of investment.

1. True
2. False

Q.

The value of a machine worth $Rs.500000$ is depreciating at the rate of $10\%$ every year. In how many years will its value be reduced to $Rs.364500$

Q. Nikhila spent 5% of her monthly income in her children's education, invested 18% in shares , deposited 3% in a bank and used 44% for her expenses. She's left with a balance of ₹15000. What was the total that she invested in shares?

1. ₹18000
2. ₹9000
3. ₹15000
4. ₹12400

Q. Calculate the amount on ₹ 15, 000 in 2 years and at 16 % compounded annually.

1. ₹18892
2. ₹26400
3. ₹20184
4. ₹22454

Q. Rahul invested a part of ₹50, 000 at 4% simple interest per annum in a post office and rest in a private bank at 5% per annum. His gain at the end of the year was ₹2, 300. Find the amount of money he invested in private bank.

1. 20, 000
2. 40, 000
3. 30, 000
4. None of these

Q. A sum compounded annually becomes $\frac{64}{25}$ times itself in 2 years. Determine the rate of interest per annum

1. 50%
2. 67.5%
3. 60%
4. 75%

Q. Debby spent 15% of her monthly income in her children's education, invested 20% in mutual funds , deposited 8% in a fixed deposit and used 37% for her expenses. She's left with a balance of ₹8000. What was the total that she invested in fixed deposit?

1. ₹3200
2. ₹4000
3. ₹2440
4. ₹4800

Q. Ankit invested a total of ₹50000 in two different schemes A and B at 5% and 7% respectively. Altogether his gain was ₹3400. Find out the amount he invested in Scheme B.

1. ₹45000
2. ₹25000
3. ₹22500
4. ₹55000

Q. Suman invested ₹50000 in her new food business. In the first year she suffered a loss of 10%. She invested the amount left with her in a metal business and made a 12% profit on it. Calculate the overall profit or loss that she incurred.

1. ₹400 Loss
2. ₹400 Profit
3. ₹480 Profit
4. ₹560 Profit

Q.

Shares and mutual funds are non-certain modes of investment.

1. True
2. False

Q. The difference in SI and CI on a certain sum of money in 2 years at $15\%p.a.$ is ₹1440. Find the sum invested.

1. ₹61200
2. ₹60000
3. ₹64000
4. ₹66400

Q. Amisha invested a total of ₹45000 in two different schemes A and B at 4% and 5% respectively. Altogether her gain was ₹2000. Find out the amount she invested in Scheme A.

1. ₹32500
2. ₹20000
3. ₹25000
4. ₹45000

Q. In beginning of the year 2018, there was ₹24000 in a savings account. After adding ₹56000 to this, the entire amount was invested at 7.5% compound interest. What will be the amount after 2 years?

1. ₹93050
2. ₹91550
3. ₹94350
4. ₹92450

Q. Vedika wants to purchase a necklace which costs ₹25000. But she only has ₹21000 with her. She borrows the remaining amount from Manish at simple interest of 3% p.a. for 3 months. Find the loss Vedika incurred owing to the interest given to Manish.

1. ₹20
2. ₹30
3. ₹40
4. ₹50

Q.

Should I buy stocks or bonds?

Q. In beginning of the year 2019, there was ₹26000 in a savings account. After adding ₹54000 to this, the entire amount was invested at 8% compound interest. What will be the amount after 2 years?

1. ₹92450
2. ₹93, 312
3. ₹94354
4. ₹91558

Q.

The overall financial risk depends upon the ____.

Q. Which of the following would you associate with banks?

1. Fixed deposit
2. Recurring deposit
3. Savings deposit
4. Mutual funds

Q. Shishir and Gowtham won ₹2000 each in a dance competition. Gowtham decides to save the money in his piggy bank, whereas Shishir spends ₹100 and invests the rest amount at simple interest of 25% per annum. Who will be left with more money at the end of one year?

1. Both of them will have equal money.
2. Shishir
3. Gowtham
4. They will have no money left

Q. The greater risk the investment poses, the lower gains it can fetch.

1. True
2. False

Q. Rajesh invests ₹ 45000 in an insurance. He gets an annual return from it. But Insurance company deducts a tax from it as per government policy and that is equal to the annual return percentage. Rajesh ends up in :

1. Profit
2. Neither profit nor loss
3. Data insufficient
4. Loss

Q. Mr. Mishra Earns ₹7, 00, 000 per annum. After paying his taxes , and spending ₹ 4, 50, 000 , he saves ₹ 2, 10, 000. What is the total percentage of tax that he pays on his total income.

1. ₹4.875%
2. ₹5.29%
3. ₹5.71%
4. ₹6.4%

Q. Sushma invested ₹40000 in her new food business. In the first year she suffered a loss of 10%. She invested the amount left with her in a metal business and made a 12% profit on it. Calculate the overall profit or loss that she incurred.

1. ₹320 profit
2. ₹400 profit
3. ₹360 loss
4. ₹400 loss

Q.

Which of the following is/are a type of bank account?

1. Recurring Deposit Account

2. All of these

3. Current Account

4. Savings Account

Q. A simple way to make a diversified investment is investing in _______.

1. Stocks
2. Shares
3. Mutual Funds
4. Derivatives

Q. Private Sector Mutual Funds in India were permitted in

1. 1964
2. 1993
3. 1994
4. 2001

Q. Sameera spent 90% of her income and donated 3% for socially useful causes. If she left with ₹1750 at the end of the month, what was her actual income? ​
$\left[2\right]$

Q. The main functions of mutual funds include _________.

1. holding investment in trust, and to diversify the risk in the investment, proper management of portfolio with an object to optimize the returns
2. all of the above
3. collection of funds from a large number of investors
4. investment of funds so collected in capital markets

Q. Investors can sell their mutual funds whenever they want.

1. True
2. False

Q. Mutual funds are vehicles for collective investment that pool the savings of many investors for _____________.

1. it brings together the investors who have surplus money to invest corporate entities who need the money to their projects
2. the fund collects money from the members and invests them in a diversified portfolio of financial assets
3. all of the above
4. investment in securities, according to stated objective and the profits are shared equally among its participants in proportion to their holdings