SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 16. What is the primary purpose of savings?
To spend on luxury items
To invest in stocks
To maintain liquidity for short-term or urgent requirements
To donate to charity
Q 17. What is the main purpose of investing?
To keep money idle
To grow money by creating assets
To spend immediately
To avoid financial planning
Q 18. How does the risk of savings compare to the risk of investments?
Savings are riskier than investments
Savings have low or negligible risk
Savings have a high risk
Both have equal risk
Q 19. What does it mean for savings to be highly liquid?
They are easy to convert to cash quickly
They earn high returns
They are tied up for a long time
They cannot be withdrawn
Q 20. Which of the following is an example of an investment?
Keeping money in a savings account
Investing in fixed deposits
Spending on daily groceries
Holding cash at home
Q 21. What is the importance of starting to save and invest early in life?
It reduces financial planning efforts
It ensures quick profits
It helps meet long-term financial goals like buying a house or funding retirement.
It avoids all financial risk.s
Q 22. What is an asset?
An item that has no economic value
Money owed to others
An item that you own and has economic value
A debt
Q 23. What is a liability?
An item that has economic value
An item that you own
Money borrowed from others
An investment
Q 24. Which of the following is a liability?
Fixed Deposit
Savings account
Loan from a bank
Gold jewelry
Q 25. Why should one invest money in addition to saving?
To spend on immediate needs
To hide money from taxation
To make the money grow and get closer to financial goals
To increase financial risk
Q 26. What type of investment is considered less liquid compared to savings?
Savings account
Checking account
Fixed Deposit
Digital wallet
Q 27. Which of the following is NOT an example of an asset?
Savings in a bank account
Fixed Deposit
Loan from a friend
Real estate property
Q 28. Why is it important to differentiate between assets and liabilities?
To avoid financial planning
To ensure all money is spent
To better manage personal finances and net worth
To save less money
Q 29. What should one consider when choosing between savings and investments?
Liquidity needs and risk tolerance
The popularity of the option
Friend's recommendations
Immediate availability of funds
Q 30. Which of the following statements is true about investments?
Investments are always risk-free
Investments guarantee high returns
Investments can fluctuate in value over time
Investments should be avoided