SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 16. Which of the following is an example of a specific financial goal?
I need to save money.
I need to set aside money for my granddaughter's birthday next year.
I need to become wealthy.
I need to spend less.
Q 17. What does "measurable" mean in the context of financial goals?
The goal should be easy to achieve
The goal should have a timeline
The goal should be quantifiable to track progress
The goal should be difficult to achieve
Q 18. What does "realistic" mean in terms of financial goal setting?
Goals that are simple to achieve
Goals that are based on current resources and tasks
Goals that require no effort
Goals that are undefined
Q 19. Which statement represents a realistic financial goal?
By saving regularly, I will become a millionaire next month.
By saving regularly, I will be debt free by January next year.
I will save all my money.
I will save some money when I can.
Q 20. Why should financial goals be time-bound?
To make the goals easier
To avoid setting specific goals
To track progress and stay motivated
To increase spending
Q 21. What is an example of a time-bound financial goal?
I will save money for my daughter's marriage.
I will save ₹50,000 every year for the next 10 years for my daughter's marriage.
I will become rich someday.
I will spend less next month.
Q 22. What does "goal-based investing" focus on?
Maximizing short-term profits
Meeting personal and specific financial goals
Avoiding all risks
Randomly selecting investments
Q 23. How can individuals meet their financial goals?
By avoiding all investments
By using investment, risk management, and tax planning strategies
By spending all their income
By borrowing excessively
Q 24. Why should financial plans be reviewed regularly?
To make more expenses
To adjust for changes in circumstances
To avoid making any changes
To increase liabilities
Q 25. Which of the following is not a characteristic of a SMART financial goal?
Specific
Measurable
Achievable
Time-bound
Q 26. What should one consider when planning for goal-based investing?
Age, risk appetite, financial situation, and investment horizon
Only the current income
Only the current expenses
Borrowing as much as possible
Q 27. What is the first step in achieving financial goals?
Decide upon asset allocation
Choose the right investments
Identify specific financial goals
Diversify investments within asset classes
Q 28. How are short-term goals typically characterized?
Time horizon of one year or more
Time horizon of eight years or more
Time horizon ranging from a few months to one year
Time horizon of one year to eight years
Q 29. What are medium-term financial goals characterized by?
Time horizon of one year to eight years
Time horizon of one year or more
Time horizon of eight years or more
Time horizon ranging from a few months to one year
Q 30. What does asset allocation involve?
Choosing specific financial goals
Identifying short-term, medium-term, and long-term goals
Diversifying investments within asset classes
Maximizing returns with diversified asset allocation