CUET Home Science MCQs Savings and Investments

Question. The portion of income not spent on consumption is___________.
(a) saving
(b) production
(c) distribution
(d) None of the above

Answer : A

Question. We should keep our savings with banks because
(a) It is safe
(b) It earns interest
(c) It can be withdrawn anytime
(d) All of above

Answer : D

Question. Which of the following is a reason that people don't save money?
(a) They lack discipline
(b) They do not live on a budget
(c) They lack focus
(d) All of the above

Answer : D

Question. Investments is
(a) A part of income left after expenditures
(b) A part of income invested on properties
(c) A part of income invested monthly or annually to generate additional income
(d) None of the above

Answer : C

Question. Tax saving can be done by
(a) Opting for schemes which offer tax rebate on current income
(b) Opting for schemes in which the interest rate is tax free
(c) Opting for methods showing false investments
(d) Both (a) and (b)

Answer : D

Question. Which of the following is the best option for home saving?
(a) Post office
(b) Banks
(c) Both (a) and (b)
(d) Private agency

Answer : C

Question. Banks pays interest on
(a) Deposit
(b) Loans
(c) Both (a) & (b)
(d) None of above

Answer : A

Question. Which deposit account is for individuals to save money and earn the modest interest for that money held in the account?
(a) Savings Bank Account
(b) Current Account
(c) Recurring Account
(d) Fixed Deposit Account

Answer : A

Question. How can one withdraw money from one's account?
(a) By asking the bank manager
(b) Through withdrawl slips
(c) By operating the bank account
(d) By going to bank

Answer : B

Question. Read the following statements:
I. Savings bank accounts offer easy money availability, money safety and multiple withdrawl options.
II. Savings bank accounts have low interest rates.
III. There is a need to maintain minimum balance depending on the type of bank
Choose the incorrect statement(s)
(a) Only II
(b) I and II
(c) II and III
(d) None of the above

Answer : D

Question. Fixed Deposit can
(a) not be withdrawn before maturity
(b) paid only after maturity
(c) be withdrawn before maturity
(d) All of above

Answer : C

Question. Which of the following products provide an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time?
(a) Fixed Deposit Account
(b) Savings Bank Account
(c) Recurring Deposit Account
(d) Current Account

Answer : C

Question. Bank Pass Book is
(a) Issued by Bank
(b) Contains transaction details of Bank account
(c) Shows balance in account
(d) All of above

Answer : D

Question. Life insurance means
(a) Insurance of human
(b) Insurance of life of human and cattle
(c) Insurance of life of machines
(d) Insurance of life of automobiles

Answer : A

Question. PPF means
(a) Pension Planning Funds
(b) Person having Pension Facilities
(c) Public Provident Fund
(d) Permanent Practitioner's Forum

Answer : 

Question. Which one of the following is not a good method of investing money?
(a) FDR
(b) LIC
(c) NSC
(d) Lottery

Answer : C

Question. Given below are two statements labelled as Assertion (A) and Reason (R).
Assertion (A) Public Provident Fund (PPF) is a retirement savings scheme offered by the Government of India.
Reason (R) The aim of the scheme is to provide a secure post-retirement life to everyone.
Select the correct option.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true

Answer : D

Question. LIC Jeevan Arogya scheme is a comprehensive health policy. Based on this statement, choose a feature of his policy from the following options:
(a) Income Tax rebate is not available
(b) It covers only the policy holder
(c) It has flexible premium payment options
(d) The full amount of sum is payable to the nominee

Answer : C

Question. Choose the correct pair
(a) Employee provident fund - compulsory for all salaried persons
(b) Monthly income scheme - unique scheme of the post office
(c) Public provident fund - the time period for investment is 15 years
(d) Senior citizen

Answer : B

Question. Match the following.
List – I                                        List – II
A. Fixed deposit                     1. Interest above Rs. 10,000 is taxable
B. Recurring deposit               2. Minimum amount to be invested is Rs. 100
C. Employee provident           3. Time period of investment     
     fund                                        is for the full duration of salary period
D. National saving                  4. Minimum amount to be  
     certificates                             invested is Rs. 1000
Codes
     A B C D
(a) 4 1 3 2
(b) 1 4 3 2
(c) 2 1 3 4
(d) 3 1 4 2

Answer : A