# Types of Investments and Understanding Profitability

## Trending Questions

**Q.**Provident funds are a type of investment.

- True
- 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?

- ₹18000
- ₹9000
- ₹15000
- ₹12400

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

- ₹18892
- ₹26400
- ₹20184
- ₹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.

- 20, 000
- 40, 000
- 30, 000
- None of these

**Q.**A sum compounded annually becomes 6425 times itself in 2 years. Determine the rate of interest per annum

- 50%
- 67.5%
- 60%
- 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?

- ₹3200
- ₹4000
- ₹2440
- ₹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.

- ₹45000
- ₹25000
- ₹22500
- ₹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.

- ₹400 Loss
- ₹400 Profit
- ₹480 Profit
- ₹560 Profit

**Q.**

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

- True
- 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.

- ₹61200
- ₹60000
- ₹64000
- ₹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.

- ₹32500
- ₹20000
- ₹25000
- ₹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?

- ₹93050
- ₹91550
- ₹94350
- ₹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.

- ₹20
- ₹30
- ₹40
- ₹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?

- ₹92450
- ₹93, 312
- ₹94354
- ₹91558

**Q.**

The overall financial risk depends upon the ____.

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

- Fixed deposit
- Recurring deposit
- Savings deposit
- 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?

- Both of them will have equal money.
- Shishir
- Gowtham
- They will have no money left

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

- True
- 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 :

- Profit
- Neither profit nor loss
- Data insufficient
- 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.

- ₹4.875%
- ₹5.29%
- ₹5.71%
- ₹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.

- ₹320 profit
- ₹400 profit
- ₹360 loss
- ₹400 loss

**Q.**

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

Recurring Deposit Account

All of these

Current Account

Savings Account

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

- Stocks
- Shares
- Mutual Funds
- Derivatives

**Q.**Private Sector Mutual Funds in India were permitted in

- 1964
- 1993
- 1994
- 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?

[2]

**Q.**The main functions of mutual funds include _________.

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

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

- True
- False

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

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