Tuesday, 15 May 2012

Test Your Financial Skills- Basic Finance Questions

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Lets have a quick Basic Financial IQ Test-? Here we Go. Some questions may have multiple answers. Do not use Google or Calculators :)

  1. Is it possible to invest in PPF for 25 Years?a) Yes Possible b) Not Possible
  2. Bank Deposit with 5 years tenure by default (automatically) entails an investor for tax deduction under Section 80C.a) Yes  b) No
  3. One Lakh Invested in HDFC Top 200 in Aug 1996 would have approximately grown to (as of today-16th May)a) 12.5 Lakh  b) 18.5 Lakh c) 8 Lakh  d) 22 Lakh
  4. SIP of 1 Lakh per year for 25 years @ 10% and compounded quarterly will mature approximately toa)50 Lakh   b)1.2 crore  c)  35 Lakh  d) 1.8 crore
  5. TDS for Bank Recurring Deposit of 30 Thousand Per month for 1 year Tenure isa) 10%  b) 20% c) TDS is not applicable for Recurring Deposits.
  6. 30 Years old Software Engineer earning 6 Lakh per year earns an interest of 15K pers year in XYZ Bank. He can save/avoid TDB by:a) Submitting 15G Form b) submitting 15H Form c) Not Possible to avoid TDS
  7.  What is the tax exemption limit for the interest repayment (home loan) for 2nd house?a) Maximum of 1.5 Lakh 2) No Limit 3) No Tax exemption for 2nd house. d) 3 Lakh
  8. Profits Earned from ELSS Mutual Funds are taxed as pera) Your tax bracket b) Returns are tax free c) flat 10% tax  d) 20.3%
  9. Here are few LIC Insurance Schemes. Pick the Term Plan.a) Amulya Jeevan b) Jeevan Ananad c)Jeevan Chaya d) Jeevan Rekha d) Anmol Jeevan
  10. Pick the Odd Man Outa)SBI b)Canara Bank c)HDFC Bank d)Corporation Bank d)Indian Bank
  11. Pick the Odd Man Out
    a) NSC b)ELSS c)PPF c)Tax Saving Fixed Deposits
  12. Tax exemption Limit for Gratuity(Act 1972)  amount isa)3.5 Lakh b) 5 Lakh c)10 Lakh d)Gratuity amount is completely taxable.
    Feel Free to Pass this test to your friends and loved ones. Use the comment section to try out your score. Personally feel a score of 10+ is pretty good.
Here are the answers :

  1. A
  2. B
  3. B
  4. B
  5. C
  6. C
  7. B-No Limit
  8. B
  9. A & D
  10. C - HDFC bank is private bank all other are Govt/PSU
  11. B -ELSS is market linked, others are not.
  12. C

How did you perform ?


14 comments:

Ashesh said...

Excellent!! Loved the "basic" questions. I am glad i was able to understand few ;)

Eagerly waiting for the answers.

WealthUCreate said...

Ashesh, nice to know that you liked the questions. Go ahead and let us know your answers in comment section...

Kiran said...

1 a
2 b
3 d (wild guess)
4 d
5 c
6 a (But he can save tax if he invests that amount into Yes Bank savings account, right?)
7 3
8 b
9 a
10 c
11 b
12 b

WealthUCreate said...

Hmm...... Not bad...Lets see if anybody gets 10+.

I did like your wild guess... :)

Anonymous said...

1 a
2 a
3 a
4 b
5 c
6 b
7 a
8 b
9 b
10 c
11 b
12 c

WealthUCreate said...

Anonymous Sir,

Hmmm... There is scope to improvise. As of now i can say Kiran stand relatively better. :) you can compare the answers. Having said this, Not all the answers given by Kiran are right. :)

Soon you will get to see the right answers.

RD said...

My Ans..

1 b
2 a
3 d
4 d
5 a
6 c
7 b
8 b
9 a
10 d
11 a
12 b

WealthUCreate said...

RD, Not bad attempt. Still awaiting for 10 +

Ref -Question Num 1 : Do you have PPF account? Do you like to invest in it?

bablu said...

1.a
2.b
3.SKIPPED-no idea abt its past nav
4.SKIPPED-life is diff without calc n computers
5.c
6.a
7.b
8.b
9.a - GUESS as aftr visiting ur site i dont luk into insurance schemes at all
10.d- GUESS
11.c
12-SKIPPED

Gaurav said...

Hey WuC,

Below are my responses:
1 a
2 a
3 c
4 d
5 c
6 c
7 a
8 b
9 a
10 a
11 b
12 c

Keeping my fingers crossed (I might have messed up couple of them) :-)

WealthUCreate said...

Gaurav,

I like your thought proces(might have messed up:) )
Let me say this... you have guessed it right "you have messed up with few".

It was Not a bad attempt. I bet after seeing the answers you will infact have more enthu to read about finance articles....

WealthUCreate said...

Bablu,

There was no negative marking like it happens in some enterance test :). Well all i can say you have picked up quite a lot in very short time.

Good Going.... I am sure down the line you would do much better

bablu said...

@WealthUCreate

Thanks a lot... I recently realized the importance of parking money and creating wealth...it will take time to improve to understand... I could give some guess but that wont test my real understanding...so I left it

WealthUCreate said...

bablu,

Nice to know that this little quiz did bring some change in your thought process. Happy Investing.

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