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Q1. What is investment?
A. Spending money
B. Saving money without purpose
C. Allocating money to earn returns
D. Borrowing money
Answer: C
Explanation: Investment means putting money into assets to generate returns over time
Q2. Which of the following is considered a safe investment?
A. Stocks
B. Mutual Funds
C. Fixed Deposits
D. Cryptocurrency
Answer: C
Explanation: Fixed deposits are considered safer as they provide guaranteed returns.
Q3. What does SIP stand for?
A. Systematic Investment Plan
B. Simple Interest Plan
C. Secure Investment Policy
D. Standard Income Plan
Answer: A
Explanation: SIP allows regular investment in mutual funds.
Q4. Which investment option gives the highest risk?
A. Fixed Deposit
B. Government Bonds
C. Stocks
D. Savings Account
Answer: C
Explanation: Stocks have high risk but also potential for high returns.
Q5. What is diversification in investment?
A. Investing in one asset
B. Investing in multiple assets
C. Avoiding investment
D. Saving money only
Answer: B
Explanation: Diversification reduces risk by spreading investments.
Q6. Which of the following is a long-term investment?
A. Trading
B. Gambling
C. Real Estate
D. Lottery
Answer: C
Explanation: Real estate is typically held for long-term growth.
Q7. What is the main goal of investment?
A. Spend money
B. Lose money
C. Grow wealth
D. Avoid taxes
Answer: C
Explanation: Investment helps in wealth creation over time.
Q8. Which market is used for buying shares?
A. Commodity Market
B. Stock Market
C. Forex Market
D. Real Estate Market
Answer: B
Explanation: Shares are bought and sold in the stock market.
Q9. What is risk in investment?
A. Guaranteed profit
B. Chance of losing money
C. Fixed return
D. Free money
Answer: B
Explanation: Risk means uncertainty in returns.
Q10. Which option is best for beginners?
A. Day trading
B. Mutual Funds SIP
C. Crypto trading
D. Gambling
Answer: B
Explanation: SIP in mutual funds is beginner-friendly and less risky.
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