Test Your NCFM Financial Market Beginner Module Mock Test Knowledge in 5 Minutes

1. Is it correct to define investment as the act of utilizing savings to generate a financial return?

A. True B. False

2. Identify the primary reasons why an individual might choose to invest their funds.

A. To generate a profit B. To build wealth for a specific future target C. To provide a safety net against future risks D. All of the above

3. Is it true that investing your savings can help you manage the rising costs caused by inflation?

A. True B. False

4. What typically happens to the purchasing power of money when inflation occurs?

A. The value of money increases B. The value of money decreases C. The value of money stays the same D. None of the above

5. If an item currently costs Rs. 200 and the annual inflation rate is 8%, what will the price of that same item be in 10 years?

A. 400 B. 471.38 C. 431.38 D. 321

6. Which of the following are considered fundamental principles for successful investing?

A. Starting to invest at an early age B. Making investments on a consistent basis C. Committing to investments for a long duration D. All of the above

7. Which factors play a role in determining the interest rates within the Indian economy?

A. The level of demand for funds B. The available supply of money C. The current rate of inflation D. All of the above

8. Are instruments such as insurance policies and provident funds categorized as financial assets?

A. True B. False

9. Which of the following is an example of an investment suited for a short-term time frame?

A. Standard savings bank account B. Money market instruments C. Liquid mutual funds D. All of the above

10. What is the minimum duration required for an investment in a bank Fixed Deposit (FD)?

A. 7 Days B. 15 Days C. 30 Days D. 45 Days