SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 1. What is financial planning?
The process of spending all your income
The process of estimating financial needs and creating a plan to meet those needs
The process of saving money without any goals
The process of borrowing money for daily expenses
Q 2. Which of the following is an example of a financial need?
Buying a new car every year
Planning for retirement
Avoiding insurance
Ignoring financial goals
Q 3. What is the first step in the financial planning process?
Determining your future financial goals
Understanding your current financial situation
Investing in stocks
Spending on luxury items
Q 4. How is net worth calculated?
Assets minus expenses
Income minus liabilities
Assets minus liabilities
Liabilities minus assets
Q 5. What does net worth indicate?
Your spending habits
Your capacity to achieve financial goals
Your monthly expenses
Your savings account balance
Q 6. Which of the following is considered an asset in financial planning?
Credit card debt
House loan
Car
Monthly rent
Q 7. Which of the following is considered a liability in financial planning?
Bank balance
Savings account
Car loan
Fixed deposit
Q 8. Why is it important to know your net worth?
To plan for daily expenses
To avoid investing
To understand your financial capacity to achieve goals
To decrease income
Q 9. Which of the following is not a financial goal?
Buying a house
Paying for university education
Funding retirement
Meeting emergency medical expenses
Q 10. What role does understanding current income and expenses play in financial planning?
It helps avoid investments
It helps create a comprehensive financial plan
It increases liabilities
It guarantees fixed returns
Q 11. Which of the following is an example of a liability?
Bank balance
House
Car loan
Savings account
Q 12. What can a positive net worth indicate about a person's financial health?
They have no debts
They spend more than they earn
They are financially capable of achieving their goals
They have no assets
Q 13. What is a financial goal?
A vague wish to save money
A specific plan to achieve financial objectives
An idea to spend money without planning
Borrowing money for unnecessary expenses
Q 14. Which of the following is a basic financial goal?
Buying a luxury car
Saving for a child’s education
Planning for retirement
Estate planning
Q 15. What does SMART stand for in financial goal setting?
Specific, Measurable, Achievable, Realistic, Time-bound
Simple, Measurable, Affordable, Realistic, Time-bound
Specific, Manageable, Affordable, Realistic, Time-bound
Specific, Measurable, Affordable, Realistic, Timely