SEBI - Investor Certification Examination

SEBI - Investor Certification Examination

 6

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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
 

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