Investoday Financial Literacy Test Blog Contact Us Menu Financial Literacy Test Blog Contact Us Welcome to your Financial Literacy Test This test will help you asses and understand your level of Financial Literacy. Name Email Contact Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, would your ability to buy something with the money in this account be? more than today less than today exactly the same don't knowWhich of the following financial products can help you lower your personal risk? Insurance Mutual funds Retirement plans StocksIf a bank offers 8% interest compounded quarterly on its 10-year deposit, how much will Rs 1 lakh grow to in 10 years? Rs 2 lakh Rs 2.2 lakh Rs 2.5 lakhYou are not overspending if You issue cheques for more than what you have in your account Your monthly wages are Rs. 3,000 and you are spending Rs. 3,500. You frequently receive calls from debtors. Your monthly debt payment is 30% of your take-home payHow can automating my finances save me time, protect my credit, and earn me extra money? Having bills paid automatically will reduce time spent on accounting; paying bills on time protects credit; and setting up direct deposit from your employer means you will earn maximum interest each month Automating your finances cannot protect your credit or help you earn money Automating your finances organizes all your accounts in one place that can easily be reviewed and updated online Both “a” and “c.”If I invest 1000 per month starting at age 21, and that money earns a 7% annual return, how much will I have after 70 years? Approx 26 lakhs Between 28-35 lakhs More than 45 Lakh None of the above.What percentage of the household income should ideally be invested each month? 10% 20% 30%The most liquid asset is Money in fixed deposit account Money in a saving account A car A HouseNEFT stands for National Electric Fund Transfer National Electronic Fund Transfer National Electrical Fund Transfer None of AboveNetworth of an individual equals to assets minus liabilities liabilities minus assets assets plus liabilities assets divided by liabilitiesWhat all is true for education loan? Cover tuition fee & expenses Are repayable after completion of course Granted for studies in India & abroad All of aboveWhich of the following steps should you take now to be prepared to invest and get your money growing for you? Start saving toward an emergency fund equal to 6 months of your bills. Start learning more about investing and potential investments. Start looking for a team of trusted advisors and mentors. All of the above.According to you, how many months' expenses do financial planners recommend that you set aside in an emergency fund? 1 to 3 months 3 to 6 months 6 to 12 months 12 to 15 monthsWhat is the annual interest rate charged by credit cards? 15-25% 30-40% 50-65%Which of the below mentioned items are not taxed? Savings bank deposits above Rs 10,000 Fixed deposit interest PPF maturity amountShould you pay down your largest debts first? Yes NoMr and Mrs. Daniels child has just started schooling and they wish to save money for his higher education, 15 years from now, from a very reputed college, which is the best way you would suggest them to invest? Invest in fixed deposits or property Invest in stocks Invest in equity mutual fundsBefore I begin investing, what systems should I have in place? Expert-level knowledge about any investment you’re considering. A trusted team of professionals who can give you advice. Risk capital (money you can afford to lose) All of the aboveMany celebrities, professional athletes, and entrepreneurs—people who can afford to live their desired lifestyles—have goals for their personal andprofessional achievements. Why do these successful people set goals? Goal-setting allows them to measure progress toward accomplishments or lifestyle changes they desire Setting goals provides them with direction. Goal-setting gives them an opportunity to show off to others. Both “a” and “b.”Time is Up!