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Q1. What is SIP?
A) Saving Plan
B) Systematic Investment Plan
C) Stock Investment Policy
D) None
Answer: B
Explanation: SIP allows you to invest small amounts regularly.
Q2. What is Inflation?
A) Rise in prices
B) Fall in prices
C) No change
D) None
Answer: A
Explanation: Inflation means an increase in prices over time.
Q3. What is a Mutual Fund?
A) Government tax
B) Investment in gold only
C) Pool of money invested in different assets
D) Bank deposit
Answer: C
Explanation: Mutual funds collect money from investors and invest in stocks, bonds, etc.
Q4. What is a Demat Account?
A) Savings account
B) Account to hold shares in electronic form
C) Loan account
D) Fixed deposit
Answer: B
Explanation: A Demat account stores your shares digitally.
Q5. What is the full form of EMI?
A) Easy Monthly Installment
B) Equated Monthly Installment
C) Extra Money Income
D) Equal Money Investment
Answer: B
Explanation: EMI is the fixed amount paid every month for a loan.
Q6. What is a Fixed Deposit (FD)?
A) Investment in stock market
B) Loan from bank
C) Money deposited for a fixed period at fixed interest
D) Daily savings
Answer: C
Explanation: FD gives fixed interest for a fixed time.
Q7. What is the stock market?
A) Place to buy vegetables
B) Place to buy and sell company shares
C) Bank service
D) Government office
Answer: B
Explanation: Stock market is where shares of companies are traded.
Q8. What is diversification?
A) Investing in one asset
B) Investing in different assets
C) Not investing
D) Borrowing money
Answer: B
Explanation: Diversification reduces risk by spreading investments.
Q9. What is interest?
A) Extra money earned on savings or paid on loans
B) Salary
C) Tax
D) Investment
Answer: A
Explanation: Interest is the cost of borrowing or reward for saving money.
Q10. What is a budget?
A) Plan for spending and saving money
B) Bank account
C) Loan system
D) Investment plan
Answer: A
Explanation: Budget helps manage income and expenses.
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