XI_CH 12 FINANCIAL MANAGEMENT & PLANNING (PART B)

Which of the following is true for “Savings”?

• The income remaining from the household sector after all consumption has taken place.

• The functional relationship between savings and the level of income is the savings function.

• Both A&B

• None

Which from the below are the avenues of Savings and Investment?

i. Pension schemes

ii. Unit Trust of India

iii. Premiums

iv. Funds

• Option i, ii

• Option ii, iii

• Option iii, iv

• Option iv, i

The word credit comes from the Latin word ____________.

• ‘CRED’ meaning ‘I trust’

• ‘CRED’ meaning ‘I believe’

• ‘CREDO’ meaning ‘I trust’

• ‘CREDO’ meaning ‘I believe’

Given below are two statements labeled as Assertion (A) and reason (R)

ASSERTION (A): Investments may be in two types of assets – physical assets and financial assets.

REASON(R): Savings, if put into bank accounts, post offices lead to the formation of financial assets.

Select the most appropriate answer from the options given below.

• Both A and R are true and R is the correct

  explanation.

• Both A and R are true but R is not the

  correct explanation.

• A is true R is false.

• Both A and R are false.

Which from the below is not the principles underlying sound investments.

• Reasonable rate of return

• Recognition of effect of world conditions

• Tax efficiency

• Collateral of specific units