BASIC FINANCIAL LITERACY CONCEPTS

What is the positive difference between your total income and total expenses known as?

• Deficit

• Saving

• Compounding

• Surplus

What is the negative difference between your total income and total expenses known as?

• Compounding

• Surplus

• Deficit

• Saving

What is the key step to make sure your future is financially secure called?

• Deficit

• Surplus

• Saving

• Compounding

What is the formula used to estimate the number of years required to double the invested money at a given annual rate of return called?

• Rule of 72

• Years to double

• Interest rate

• Compounding

How many years will it take for the amount of Rs.1000/-, invested at 9 % rate of interest, to get doubled?

• 6 years

• 12 years

• 8 years

• 10 years

What is the key tip to save money by reducing unnecessary expenses?

• Increase high-interest debts

• Spend before saving

• Save before spending

• Ignore tax benefit schemes

What is the main purpose of balance sheets?

• Showing assets and liabilities

• Showing profits and losses

• Showing revenue and expenses

• Showing cash flow

What are payments that are to be received from customers on a future date called?

• MSME

• Working capital loan

• Payables

• Receivables

What are the money owed to others for products or services purchased on credit called?

• Receivables

• Payables

• Working capital loan

• MSME

What does MSME stand for?

• Micro, Small and Medium Enterprises

• Medium, Small and Micro Enterprises

• Medium, Micro and Small Enterprises

• Small, Medium and Micro Enterprises