Match the Columns – Smart Ways to Manage Your Finances

PART A – PERSONAL FINANCIAL MANAGEMENT

Q1. Read the situation and match the financial actions with their purposes.

Column I

1. Recording daily expenses
2. Setting a financial goal
3. Keeping money aside for emergencies
4. Reviewing borrowing decisions

Column II

A. Helps prepare for unexpected financial needs
B. Shows where money is actually being spent
C. Helps judge whether debt fits one’s repayment capacity
D. Gives a clear target for saving or spending decisions

Options

A. 1-B, 2-D, 3-A, 4-C
B. 1-D, 2-B, 3-C, 4-A
C. 1-A, 2-C, 3-D, 4-B
D. 1-C, 2-A, 3-B, 4-D

Q2. A student receives a fixed monthly allowance but often runs out of money before the month ends. Which financial-management actions would best help?

Column I

1. Expense tracking
2. Spending priority
3. Savings target
4. Periodic review

Column II

A. Separating essential expenses from less important ones
B. Checking whether actual spending followed the plan
C. Recording where the allowance is being used
D. Deciding an amount to keep aside before discretionary spending

Options

A. 1-A, 2-C, 3-B, 4-D
B. 1-C, 2-A, 3-D, 4-B
C. 1-D, 2-B, 3-A, 4-C
D. 1-B, 2-D, 3-C, 4-A

Q3. A family wants to improve its financial decisions rather than simply increase its income. Match each action with the most appropriate effect.

Column I

1. Comparing income with expenses
2. Identifying unnecessary purchases
3. Setting a long-term goal
4. Reviewing debt obligations

Column II

A. Helps reduce avoidable spending
B. Helps understand whether current cash flow is manageable
C. Helps determine whether repayment commitments are affordable
D. Provides direction for future financial decisions

Options

A. 1-D, 2-C, 3-B, 4-A
B. 1-A, 2-B, 3-D, 4-C
C. 1-B, 2-A, 3-D, 4-C
D. 1-C, 2-D, 3-A, 4-B

Q4. Rohan is trying to become financially disciplined. Match each situation with the most suitable financial-management response.

Column I

1. He cannot identify where his money goes.
2. He wants to buy a bicycle after saving for several months.
3. He faces an unexpected repair expense.
4. He is considering taking a loan for a non-essential purchase.

Column II

A. Assess whether borrowing is necessary and manageable
B. Use money reserved for unexpected needs if available
C. Track expenses to identify spending patterns
D. Set a specific savings goal and timeline

Options

A. 1-D, 2-A, 3-C, 4-B
B. 1-A, 2-C, 3-D, 4-B
C. 1-B, 2-D, 3-A, 4-C
D. 1-C, 2-D, 3-B, 4-A

Q5. Match each financial-management concept with the decision it supports.

Column I

1. Financial goal
2. Expense record
3. Emergency reserve
4. Debt assessment

Column II

A. Deciding whether a repayment commitment is affordable
B. Identifying actual spending patterns
C. Preparing for unforeseen expenses
D. Giving direction to financial choices

Options

A. 1-D, 2-B, 3-C, 4-A
B. 1-A, 2-C, 3-B, 4-D
C. 1-B, 2-D, 3-A, 4-C
D. 1-C, 2-A, 3-D, 4-B

Q6. A family reviews its finances at the end of every month. Match the observations with the appropriate interpretation.

Column I

1. Actual food spending exceeded the plan.
2. Savings were higher than expected.
3. A recurring unnecessary expense was identified.
4. A new financial goal was decided.

Column II

A. Future spending may need adjustment
B. The household has improved its saving outcome
C. The expense can be reduced or reconsidered
D. Future financial decisions can now be directed toward a specific target

Options

A. 1-C, 2-A, 3-D, 4-B
B. 1-D, 2-C, 3-A, 4-B
C. 1-A, 2-B, 3-C, 4-D
D. 1-B, 2-D, 3-A, 4-C

Q7. Match the financial behaviour with the most likely benefit.

Column I

1. Regular expense tracking
2. Goal-based saving
3. Comparing needs and wants
4. Reviewing financial decisions

Column II

A. Helps direct money toward a defined purpose
B. Helps identify spending patterns
C. Helps prioritise limited resources
D. Helps correct decisions that are not working well

Options

A. 1-A, 2-C, 3-D, 4-B
B. 1-D, 2-B, 3-A, 4-C
C. 1-B, 2-A, 3-C, 4-D
D. 1-C, 2-D, 3-B, 4-A

Q8. A student wants to avoid impulsive financial decisions. Match the strategy with its purpose.

Column I

1. Setting a spending limit
2. Delaying a non-essential purchase
3. Comparing alternatives
4. Reviewing past purchases

Column II

A. Helps learn from earlier spending behaviour
B. Helps control immediate expenditure
C. Helps judge whether another option offers better value
D. Creates time to reconsider whether the purchase is necessary

Options

A. 1-D, 2-C, 3-B, 4-A
B. 1-B, 2-D, 3-C, 4-A
C. 1-A, 2-B, 3-D, 4-C
D. 1-C, 2-A, 3-D, 4-B

Q9. Match the financial situation with the most appropriate response.

Column I

1. Income is regular but spending is poorly tracked.
2. A future education expense is expected.
3. An unexpected medical expense occurs.
4. A large purchase is being considered on credit.

Column II

A. Examine repayment ability before borrowing
B. Begin planning and saving toward the expected goal
C. Maintain an emergency reserve where possible
D. Start recording and reviewing expenditure

Options

A. 1-A, 2-B, 3-C, 4-D
B. 1-C, 2-D, 3-A, 4-B
C. 1-B, 2-C, 3-D, 4-A
D. 1-D, 2-B, 3-C, 4-A

Q10. Match the financial decision with the question that should be asked before making it.

Column I

1. Taking a loan
2. Starting a savings plan
3. Buying a non-essential item
4. Creating an emergency reserve

Column II

A. How much should be kept aside for unexpected needs?
B. Can the repayment fit comfortably into future income?
C. What amount can regularly be saved without disrupting essential spending?
D. Is this purchase necessary and affordable within the plan?

Options

A. 1-C, 2-A, 3-B, 4-D
B. 1-B, 2-C, 3-D, 4-A
C. 1-D, 2-B, 3-A, 4-C
D. 1-A, 2-D, 3-C, 4-B

PART B – INFLATION AND PURCHASING POWER

Q11. Match the situation with the correct economic interpretation.

Column I

1. General prices rise over time.
2. A person’s income remains unchanged while prices rise.
3. Income rises but prices rise faster.
4. Only one product becomes more expensive while most prices remain stable.

Column II

A. Purchasing power may fall
B. This alone does not necessarily indicate general inflation
C. Purchasing power may decline despite higher nominal income
D. This is consistent with inflation when the rise is broad and sustained

Options

A. 1-D, 2-A, 3-C, 4-B
B. 1-A, 2-B, 3-D, 4-C
C. 1-C, 2-D, 3-B, 4-A
D. 1-B, 2-C, 3-A, 4-D

Q12. A family notices that the same amount of money buys fewer goods than before. Match each observation with the appropriate concept.

Column I

1. Prices of many goods rise
2. Same money buys fewer goods
3. Income does not change
4. General price level rises persistently

Column II

A. Purchasing power falls
B. Inflationary situation
C. Reduced ability of unchanged income to purchase goods and services
D. Sustained increase in the general price level

Options

A. 1-D, 2-C, 3-B, 4-A
B. 1-B, 2-A, 3-C, 4-D
C. 1-C, 2-D, 3-A, 4-B
D. 1-A, 2-B, 3-D, 4-C

Q13. Match each financial observation with the best conclusion.

Column I

1. Salary rises by a small amount while prices rise more rapidly.
2. Prices of many goods and services rise persistently.
3. The price of one particular fruit rises due to a poor harvest.
4. A fixed amount of savings buys fewer goods than earlier.

Column II

A. The change is specific to one product and is not by itself general inflation
B. Real purchasing power can decrease
C. The situation reflects a sustained rise in the general price level
D. The purchasing power of the saved money has declined

Options

A. 1-A, 2-B, 3-D, 4-C
B. 1-C, 2-D, 3-A, 4-B
C. 1-B, 2-C, 3-A, 4-D
D. 1-D, 2-A, 3-C, 4-B

Q14. A student compares purchasing power at different times. Match the condition with its likely effect.

Column I

1. Prices rise while income is unchanged.
2. Income and prices rise at the same pace.
3. Income rises faster than prices.
4. Prices rise faster than income.

Column II

A. Purchasing power tends to decrease
B. Purchasing power tends to increase
C. Purchasing power tends to remain broadly unchanged in relative terms
D. Purchasing power decreases

Options

A. 1-C, 2-A, 3-B, 4-D
B. 1-D, 2-C, 3-B, 4-A
C. 1-A, 2-B, 3-D, 4-C
D. 1-B, 2-D, 3-C, 4-A

Q15. Match the concept with the correct interpretation.

Column I

1. Inflation
2. Purchasing power
3. Nominal income
4. Real purchasing ability

Column II

A. Income measured in money terms
B. Amount of goods and services that money can buy
C. Sustained rise in the general price level
D. Ability to purchase goods and services after considering price changes

Options

A. 1-A, 2-C, 3-D, 4-B
B. 1-D, 2-B, 3-C, 4-A
C. 1-C, 2-B, 3-A, 4-D
D. 1-B, 2-D, 3-A, 4-C

Q16. A family is planning its savings during a period of rising prices. Match the situation with the implication.

Column I

1. Everyday expenses become more expensive.
2. The family keeps the same income.
3. The family reviews its financial goals.
4. The family compares future costs with current savings.

Column II

A. Helps assess whether existing plans remain realistic
B. Purchasing power of unchanged income may decline
C. Reviewing financial planning becomes important
D. Current savings may purchase fewer goods in future if prices rise

Options

A. 1-C, 2-B, 3-A, 4-D
B. 1-B, 2-D, 3-C, 4-A
C. 1-D, 2-A, 3-B, 4-C
D. 1-A, 2-C, 3-D, 4-B

Q17. Match each statement with the correct reasoning.

Column I

1. Higher money income does not always mean higher purchasing power.
2. Inflation affects household budgets.
3. A single price increase is not sufficient to establish general inflation.
4. Savings decisions may need to consider inflation.

Column II

A. The overall movement of prices matters
B. Rising prices can increase expenditure needs
C. Price changes can affect the future value of money in terms of goods and services
D. Prices may rise faster than income

Options

A. 1-A, 2-C, 3-B, 4-D
B. 1-D, 2-B, 3-A, 4-C
C. 1-C, 2-D, 3-B, 4-A
D. 1-B, 2-A, 3-D, 4-C

Q18. Match the financial response with the inflation-related reason.

Column I

1. Rechecking a long-term savings goal
2. Reviewing household expenditure
3. Comparing income growth with price growth
4. Estimating future expenses

Column II

A. To understand whether purchasing power is changing
B. To identify how rising prices may affect the household
C. To determine whether the target amount remains adequate
D. To plan for potentially higher future costs

Options

A. 1-C, 2-B, 3-A, 4-D
B. 1-A, 2-C, 3-D, 4-B
C. 1-D, 2-A, 3-B, 4-C
D. 1-B, 2-D, 3-C, 4-A

Q19. Match the scenario with the appropriate conclusion.

Column I

1. Prices of many household goods rise persistently.
2. A family’s income stays constant.
3. The same amount of money buys fewer goods.
4. A single electronic product becomes expensive because of supply problems.

Column II

A. This by itself is not proof of general inflation
B. Purchasing power has fallen
C. The household may face reduced purchasing ability
D. The situation is consistent with inflation if the increase is broad and sustained

Options

A. 1-A, 2-C, 3-D, 4-B
B. 1-D, 2-C, 3-B, 4-A
C. 1-B, 2-D, 3-A, 4-C
D. 1-C, 2-B, 3-A, 4-D

Q20. Match each statement with the concept it illustrates.

Column I

1. Money buys fewer goods than before.
2. Prices generally increase over time.
3. Income increases but not enough to offset rising prices.
4. The price of one item rises independently.

Column II

A. Reduced purchasing power
B. Inflation
C. Decline in real purchasing ability
D. Product-specific price change

Options

A. 1-B, 2-A, 3-D, 4-C
B. 1-D, 2-C, 3-A, 4-B
C. 1-A, 2-B, 3-C, 4-D
D. 1-C, 2-D, 3-B, 4-A

PART C – SIMPLE AND COMPOUND INTEREST

Q21. Match the situation with the appropriate interest concept.

Column I

1. Interest calculated only on the original principal
2. Interest calculated on principal plus accumulated interest
3. Interest rate remains the same but time increases
4. Interest is added to the balance at regular intervals

Column II

A. Compound interest
B. Longer period can increase total interest
C. Simple interest
D. Compounding process

Options

A. 1-C, 2-A, 3-B, 4-D
B. 1-A, 2-D, 3-C, 4-B
C. 1-D, 2-B, 3-A, 4-C
D. 1-B, 2-C, 3-D, 4-A

Q22. Match the factor with its likely effect on interest, assuming other relevant factors remain unchanged.

Column I

1. Higher principal
2. Higher interest rate
3. Longer investment period
4. Interest being added back under compounding

Column II

A. Can increase the amount on which future interest is calculated
B. Can increase interest earned
C. Can increase interest earned over the period
D. Can increase the base for subsequent interest calculations

Options

A. 1-D, 2-A, 3-C, 4-B
B. 1-B, 2-C, 3-A, 4-D
C. 1-C, 2-D, 3-B, 4-A
D. 1-A, 2-B, 3-D, 4-C

Q23. A student compares simple and compound interest. Match each feature correctly.

Column I

1. Simple interest
2. Compound interest
3. Original principal
4. Accumulated interest

Column II

A. Interest that has already been earned and may become part of the balance
B. The starting amount on which interest is initially calculated
C. Interest calculated on the original principal
D. Interest calculated on principal plus accumulated interest, according to the compounding arrangement

Options

A. 1-A, 2-C, 3-D, 4-B
B. 1-D, 2-A, 3-B, 4-C
C. 1-C, 2-D, 3-B, 4-A
D. 1-B, 2-C, 3-A, 4-D

Q24. Match the financial situation with the most appropriate conclusion.

Column I

1. Same principal and rate under simple interest for a longer period
2. Interest is repeatedly added to the balance
3. A larger principal is invested at the same rate and time
4. Compounding occurs more frequently under otherwise comparable terms

Column II

A. More money is initially exposed to the interest calculation
B. Total interest under simple interest increases with time
C. Interest can be earned on previously added interest
D. The final amount may differ because interest is added more often

Options

A. 1-A, 2-D, 3-B, 4-C
B. 1-B, 2-C, 3-A, 4-D
C. 1-D, 2-B, 3-C, 4-A
D. 1-C, 2-A, 3-D, 4-B

Q25. Match the concept with the correct application.

Column I

1. Principal
2. Rate
3. Time
4. Compounding

Column II

A. Determines how long money remains invested or borrowed
B. Determines the percentage used to calculate interest
C. Refers to interest being added to the balance for future calculations
D. Refers to the original amount invested or borrowed

Options

A. 1-D, 2-B, 3-A, 4-C
B. 1-A, 2-D, 3-C, 4-B
C. 1-B, 2-C, 3-D, 4-A
D. 1-C, 2-A, 3-B, 4-D

Q26. A borrower wants to understand why the final repayment amount can become larger under compounding. Match the reason with its explanation.

Column I

1. Interest is added to the outstanding balance.
2. Future interest can be calculated on the increased balance.
3. The rate remains applicable according to the agreed terms.
4. The loan continues for a longer period.

Column II

A. The effect of compounding can continue over more periods
B. Interest may become part of the amount on which later interest is calculated
C. The interest calculation continues according to the applicable rate
D. The balance can rise because of added interest

Options

A. 1-D, 2-B, 3-C, 4-A
B. 1-C, 2-A, 3-D, 4-B
C. 1-B, 2-D, 3-A, 4-C
D. 1-A, 2-C, 3-B, 4-D

Q27. Match each observation with the concept it demonstrates.

Column I

1. Interest is always calculated on the original principal.
2. Interest earned earlier becomes part of the balance.
3. A larger principal generates more interest at the same rate and period.
4. A longer period allows more interest calculations.

Column II

A. Compound interest
B. Effect of principal size
C. Effect of time
D. Simple interest

Options

A. 1-A, 2-D, 3-C, 4-B
B. 1-C, 2-A, 3-D, 4-B
C. 1-D, 2-A, 3-B, 4-C
D. 1-B, 2-C, 3-A, 4-D

Q28. Match the decision with the information that should be compared.

Column I

1. Choosing between simple and compound interest
2. Comparing two deposits
3. Evaluating a longer investment period
4. Evaluating compounding frequency

Column II

A. Compare how often interest is added to the balance
B. Compare the applicable calculation method
C. Compare principal, rate and other relevant terms
D. Compare how the duration affects the final amount

Options

A. 1-C, 2-B, 3-A, 4-D
B. 1-B, 2-C, 3-D, 4-A
C. 1-D, 2-A, 3-C, 4-B
D. 1-A, 2-D, 3-B, 4-C

Q29. Match the interest-related statement with its reasoning.

Column I

1. Compound interest can grow faster than simple interest.
2. Higher interest rates can increase interest earned.
3. Longer periods can increase total interest.
4. A larger principal can increase interest.

Column II

A. More money is subject to the interest calculation
B. Interest can accumulate on earlier interest
C. The rate determines the percentage applied to the relevant balance
D. More periods provide more opportunities for interest to accumulate

Options

A. 1-B, 2-C, 3-D, 4-A
B. 1-C, 2-D, 3-A, 4-B
C. 1-A, 2-B, 3-C, 4-D
D. 1-D, 2-A, 3-B, 4-C

Q30. Match the financial statement with the correct interpretation.

Column I

1. “Interest is calculated only on the initial amount.”
2. “Earlier interest is added to the balance.”
3. “The rate is 5% per year.”
4. “The money remains invested for a longer period.”

Column II

A. The percentage used for the interest calculation is specified
B. This describes simple-interest treatment
C. This can increase the amount on which later interest is calculated
D. More time can affect the total interest earned

Options

A. 1-A, 2-B, 3-D, 4-C
B. 1-D, 2-C, 3-B, 4-A
C. 1-B, 2-C, 3-A, 4-D
D. 1-C, 2-D, 3-A, 4-B

PART D – BUDGETING

Q31. Match each budgeting action with its purpose.

Column I

1. Estimating income
2. Listing expenses
3. Setting a savings target
4. Comparing actual and planned spending

Column II

A. Helps determine available financial resources
B. Helps identify where money is expected to go
C. Gives savings a specific planned priority
D. Helps identify differences between the plan and reality

Options

A. 1-C, 2-A, 3-D, 4-B
B. 1-A, 2-B, 3-C, 4-D
C. 1-D, 2-C, 3-B, 4-A
D. 1-B, 2-D, 3-A, 4-C

Q32. A family discovers that its actual spending differs from the budget. Match the observation with the appropriate response.

Column I

1. Food spending is higher than planned.
2. Transport spending is lower than planned.
3. Savings are below the target.
4. An unexpected expense appears.

Column II

A. Consider whether other spending needs adjustment
B. Recognise that this category used fewer resources than expected
C. Review the reason for the shortfall and revise the plan if needed
D. Account for it in the revised financial plan

Options

A. 1-B, 2-C, 3-D, 4-A
B. 1-D, 2-A, 3-B, 4-C
C. 1-A, 2-B, 3-C, 4-D
D. 1-C, 2-D, 3-A, 4-B

Q33. Match the budgeting concept with its practical use.

Column I

1. Essential expenditure
2. Discretionary expenditure
3. Budget surplus
4. Budget deficit

Column II

A. Spending that can generally be adjusted more easily
B. Situation in which planned expenditure exceeds available income
C. Spending required for important needs
D. Situation in which income exceeds planned expenditure

Options

A. 1-A, 2-C, 3-B, 4-D
B. 1-C, 2-A, 3-D, 4-B
C. 1-D, 2-B, 3-C, 4-A
D. 1-B, 2-D, 3-A, 4-C

Q34. A student creates a monthly budget. Match the action with the reason.

Column I

1. Listing fixed expenses
2. Estimating variable expenses
3. Keeping a savings amount
4. Reviewing the budget regularly

Column II

A. Helps prepare for expenses that may change
B. Helps reserve money for future goals
C. Helps account for expenses that are relatively stable
D. Helps update the plan using actual experience

Options

A. 1-A, 2-B, 3-D, 4-C
B. 1-D, 2-C, 3-B, 4-A
C. 1-C, 2-A, 3-B, 4-D
D. 1-B, 2-D, 3-A, 4-C

Q35. Match the budgeting problem with the most appropriate solution.

Column I

1. Frequent unplanned purchases
2. Savings are consistently missed
3. Actual spending differs from the budget
4. The budget ignores irregular expenses

Column II

A. Include irregular expenses in future planning
B. Review spending records and identify the reasons for differences
C. Set aside savings as a planned priority
D. Introduce spending limits for discretionary purchases

Options

A. 1-A, 2-B, 3-C, 4-D
B. 1-D, 2-C, 3-B, 4-A
C. 1-C, 2-D, 3-A, 4-B
D. 1-B, 2-A, 3-D, 4-C

Q36. Match each budget component with the decision it supports.

Column I

1. Income estimate
2. Expense estimate
3. Savings target
4. Actual expenditure record

Column II

A. Helps evaluate how closely spending followed the plan
B. Helps identify expected financial resources
C. Helps decide how much money should be reserved
D. Helps plan expected uses of income

Options

A. 1-B, 2-D, 3-C, 4-A
B. 1-D, 2-A, 3-B, 4-C
C. 1-C, 2-B, 3-A, 4-D
D. 1-A, 2-C, 3-D, 4-B

Q37. A household wants its budget to remain realistic. Match each action with its contribution.

Column I

1. Reviewing actual bills
2. Including unexpected-cost provision
3. Updating expense estimates
4. Comparing needs with wants

Column II

A. Helps make the plan reflect current spending
B. Helps prepare for costs that were not originally expected
C. Helps prioritise limited income
D. Helps improve the accuracy of future budgets

Options

A. 1-B, 2-A, 3-D, 4-C
B. 1-C, 2-D, 3-A, 4-B
C. 1-A, 2-B, 3-D, 4-C
D. 1-D, 2-C, 3-B, 4-A

Q38. Match the situation with the correct budgeting interpretation.

Column I

1. Income is greater than planned expenditure.
2. Planned expenditure exceeds income.
3. Actual spending is greater than planned spending.
4. Actual spending is lower than planned spending.

Column II

A. Favourable spending variance in that category
B. Budget surplus
C. Budget deficit
D. Overspending relative to the plan

Options

A. 1-A, 2-C, 3-B, 4-D
B. 1-B, 2-C, 3-D, 4-A
C. 1-D, 2-A, 3-C, 4-B
D. 1-C, 2-B, 3-A, 4-D

Q39. Match each budgeting decision with the most useful question.

Column I

1. Reducing discretionary spending
2. Increasing savings
3. Revising a budget
4. Adding an emergency provision

Column II

A. What unexpected expenses should the plan be prepared for?
B. Which non-essential expenses can be reduced?
C. Which part of current spending can be redirected toward saving?
D. What changed between the original plan and actual experience?

Options

A. 1-B, 2-C, 3-D, 4-A
B. 1-C, 2-A, 3-B, 4-D
C. 1-D, 2-B, 3-A, 4-C
D. 1-A, 2-D, 3-C, 4-B

Q40. Match the budget review finding with the best action.

Column I

1. A recurring expense was overlooked.
2. Savings target is unrealistic.
3. A discretionary expense has increased.
4. Income has changed.

Column II

A. Reassess the savings amount in light of actual resources
B. Include the expense in future budgets
C. Reconsider or limit the discretionary spending
D. Recalculate the budget using the revised income

Options

A. 1-C, 2-D, 3-B, 4-A
B. 1-B, 2-A, 3-C, 4-D
C. 1-D, 2-C, 3-A, 4-B
D. 1-A, 2-B, 3-D, 4-C

PART E – SAVINGS AND INVESTMENT OPTIONS

Q41. Match the investment/savings option with the characteristic most closely associated with it.

Column I

1. Fixed deposit
2. Stocks
3. Bonds
4. Mutual funds

Column II

A. Represent investment in ownership of companies
B. Pool money from investors and invest according to the scheme
C. Generally involve depositing money for a specified period under stated terms
D. Represent lending to an issuer under specified terms

Options

A. 1-A, 2-D, 3-C, 4-B
B. 1-C, 2-A, 3-D, 4-B
C. 1-D, 2-B, 3-A, 4-C
D. 1-B, 2-C, 3-D, 4-A

Q42. A student is comparing investment choices for different goals. Match the consideration with the reason.

Column I

1. Risk
2. Return
3. Liquidity
4. Time horizon

Column II

A. Helps determine how easily money may need to be accessed
B. Helps assess the possibility of loss or uncertainty
C. Helps compare the potential financial outcome
D. Helps determine whether the investment period fits the goal

Options

A. 1-C, 2-B, 3-D, 4-A
B. 1-B, 2-C, 3-A, 4-D
C. 1-A, 2-D, 3-B, 4-C
D. 1-D, 2-A, 3-C, 4-B

Q43. Match each investment situation with the appropriate conclusion.

Column I

1. A portfolio contains only one company’s stock.
2. Money is spread across different investments.
3. An investor may need the money soon.
4. An investor has a long-term goal.

Column II

A. Liquidity becomes an important consideration
B. Diversification may reduce concentration risk
C. The investor may have greater exposure to the performance of one company
D. A longer time horizon may influence investment selection

Options

A. 1-C, 2-B, 3-A, 4-D
B. 1-B, 2-C, 3-D, 4-A
C. 1-D, 2-A, 3-B, 4-C
D. 1-A, 2-D, 3-C, 4-B

Q44. Match the investment characteristic with the correct explanation.

Column I

1. Diversification
2. Market risk
3. Liquidity
4. Investment return

Column II

A. Ease with which an investment can be converted into usable money
B. Financial gain or loss associated with an investment
C. Spreading money across different investments
D. Risk arising from changes in market conditions

Options

A. 1-A, 2-C, 3-D, 4-B
B. 1-D, 2-B, 3-A, 4-C
C. 1-C, 2-D, 3-A, 4-B
D. 1-B, 2-A, 3-C, 4-D

Q45. A person has different financial goals. Match each goal with the most relevant consideration.

Column I

1. Money may be needed quickly.
2. Goal is many years away.
3. Investor wants to reduce dependence on one asset.
4. Investor is comparing possible earnings.

Column II

A. Consider diversification
B. Consider return
C. Consider liquidity
D. Consider time horizon and suitability

Options

A. 1-C, 2-D, 3-A, 4-B
B. 1-A, 2-C, 3-D, 4-B
C. 1-D, 2-B, 3-C, 4-A
D. 1-B, 2-A, 3-C, 4-D

Q46. Match the investment option with the most appropriate statement.

Column I

1. Stocks
2. Bonds
3. Mutual funds
4. Fixed deposits

Column II

A. Returns and market value can fluctuate
B. Pool investors’ money according to an investment scheme
C. Operate under specified deposit terms
D. May provide interest under specified terms while carrying issuer-related risks

Options

A. 1-C, 2-A, 3-D, 4-B
B. 1-A, 2-D, 3-B, 4-C
C. 1-B, 2-C, 3-A, 4-D
D. 1-D, 2-B, 3-C, 4-A

Q47. Match the investor’s concern with the concept that addresses it.

Column I

1. “I may need the money next month.”
2. “I do not want all my money dependent on one investment.”
3. “I want to understand the possible loss.”
4. “I want to compare possible gains.”

Column II

A. Risk assessment
B. Liquidity
C. Diversification
D. Return

Options

A. 1-C, 2-D, 3-A, 4-B
B. 1-A, 2-B, 3-D, 4-C
C. 1-B, 2-C, 3-A, 4-D
D. 1-D, 2-A, 3-C, 4-B

Q48. Match the situation with the most suitable investment principle.

Column I

1. An investor chooses investments without considering the goal.
2. An investor chooses only one risky asset.
3. An investor may require funds unexpectedly.
4. An investor compares several investment choices before deciding.

Column II

A. Consider liquidity needs
B. Diversification can reduce concentration risk
C. Investment decisions should be linked with financial goals
D. Comparison should include risk, return, liquidity and other relevant factors

Options

A. 1-A, 2-B, 3-C, 4-D
B. 1-C, 2-B, 3-A, 4-D
C. 1-D, 2-A, 3-B, 4-C
D. 1-B, 2-D, 3-C, 4-A

Q49. Match each statement with the most accurate interpretation.

Column I

1. Diversification reduces concentration risk.
2. Diversification guarantees profit.
3. Higher potential return may involve higher uncertainty.
4. A mutual fund is not automatically risk-free.

Column II

A. False; diversification cannot guarantee profit
B. Investment outcomes can involve uncertainty
C. Pooling money does not eliminate investment risk
D. Spreading investments can reduce dependence on one investment

Options

A. 1-A, 2-D, 3-B, 4-C
B. 1-D, 2-A, 3-B, 4-C
C. 1-C, 2-B, 3-D, 4-A
D. 1-B, 2-C, 3-A, 4-D

Q50. Match the decision with the information needed before making it.

Column I

1. Selecting a fixed deposit
2. Buying stocks
3. Investing in bonds
4. Choosing a mutual fund

Column II

A. Scheme objectives, risks, fees/terms and investment approach
B. Deposit period, interest terms and withdrawal conditions
C. Company performance, market risk and investment objective
D. Issuer, interest terms, repayment conditions and relevant risks

Options

A. 1-C, 2-B, 3-D, 4-A
B. 1-B, 2-C, 3-D, 4-A
C. 1-A, 2-D, 3-B, 4-C
D. 1-D, 2-A, 3-C, 4-B

PART F – RISK AND INSURANCE

Q51. Match the insurance concept with its meaning.

Column I

1. Premium
2. Coverage
3. Exclusion
4. Claim

Column II

A. A request for payment or benefit under the policy
B. The amount paid for insurance according to the policy terms
C. Risks or situations that are not covered under specified terms
D. Protection provided against specified risks subject to policy conditions

Options

A. 1-B, 2-D, 3-C, 4-A
B. 1-D, 2-C, 3-A, 4-B
C. 1-A, 2-B, 3-D, 4-C
D. 1-C, 2-A, 3-B, 4-D

Q52. A family considers insurance for a financial risk. Match the action with its purpose.

Column I

1. Reading policy terms
2. Checking exclusions
3. Paying premium
4. Making a valid claim

Column II

A. Helps identify situations that may not be covered
B. Provides the required payment for the insurance arrangement
C. Helps understand the scope and conditions of protection
D. Initiates the process of seeking policy benefits after a covered event

Options

A. 1-A, 2-B, 3-C, 4-D
B. 1-C, 2-A, 3-B, 4-D
C. 1-D, 2-C, 3-A, 4-B
D. 1-B, 2-D, 3-A, 4-C

Q53. Match the risk-management decision with the appropriate reasoning.

Column I

1. Buying insurance for a specified risk
2. Checking policy exclusions
3. Comparing premiums and coverage
4. Keeping policy documents safely

Column II

A. Helps access relevant information when needed
B. Helps compare the cost and protection offered
C. Helps manage the financial consequences of a covered risk
D. Helps determine whether a particular situation is covered

Options

A. 1-D, 2-C, 3-A, 4-B
B. 1-C, 2-D, 3-B, 4-A
C. 1-A, 2-B, 3-D, 4-C
D. 1-B, 2-A, 3-C, 4-D

Q54. Match the situation with the appropriate insurance principle.

Column I

1. A policy does not cover every possible loss.
2. A premium is paid regularly according to policy terms.
3. A covered event occurs and the policyholder submits documents.
4. A person compares two policies before choosing one.

Column II

A. Claim process
B. Policy coverage has defined limits and conditions
C. Premium payment
D. Comparing protection, exclusions and costs

Options

A. 1-A, 2-C, 3-B, 4-D
B. 1-B, 2-C, 3-A, 4-D
C. 1-D, 2-A, 3-C, 4-B
D. 1-C, 2-D, 3-B, 4-A

Q55. Match each statement with the correct interpretation.

Column I

1. Insurance can reduce financial impact of specified risks.
2. Insurance prevents accidents from occurring.
3. Every insurance claim is automatically paid.
4. Policy terms determine the scope of protection.

Column II

A. False; an insurance policy does not itself prevent the event
B. False; claims depend on applicable terms and conditions
C. True; coverage can help manage certain financial consequences
D. True; exclusions and conditions form part of the policy framework

Options

A. 1-C, 2-A, 3-B, 4-D
B. 1-A, 2-C, 3-D, 4-B
C. 1-D, 2-B, 3-A, 4-C
D. 1-B, 2-D, 3-C, 4-A

Q56. A person is evaluating an insurance policy. Match the item with the question it helps answer.

Column I

1. Premium
2. Coverage
3. Exclusions
4. Claim conditions

Column II

A. What situations are specifically not covered?
B. What protection is provided?
C. What payment is required for the policy?
D. What requirements must be met to receive benefits?

Options

A. 1-B, 2-A, 3-D, 4-C
B. 1-C, 2-B, 3-A, 4-D
C. 1-D, 2-C, 3-B, 4-A
D. 1-A, 2-D, 3-C, 4-B

Q57. Match the risk-management situation with the appropriate action.

Column I

1. A family faces a risk that could cause a large financial loss.
2. A policy has several exclusions.
3. A claim is being considered.
4. A policy is due for renewal.

Column II

A. Review whether the risk remains appropriately covered
B. Check whether the event satisfies policy conditions
C. Understand which situations are outside coverage
D. Consider insurance as one way to manage the financial impact

Options

A. 1-C, 2-D, 3-A, 4-B
B. 1-D, 2-C, 3-B, 4-A
C. 1-A, 2-B, 3-D, 4-C
D. 1-B, 2-A, 3-C, 4-D

Q58. Match the insurance-related term with its role in financial planning.

Column I

1. Premium
2. Coverage
3. Exclusion
4. Claim

Column II

A. Determines the protection available for specified risks
B. Represents the cost paid for the insurance arrangement
C. Identifies situations outside the specified protection
D. Allows the policyholder to seek benefits after a covered event

Options

A. 1-A, 2-C, 3-D, 4-B
B. 1-B, 2-A, 3-C, 4-D
C. 1-D, 2-B, 3-A, 4-C
D. 1-C, 2-D, 3-B, 4-A

Q59. Match the financial risk-management statement with its implication.

Column I

1. Insurance is purchased for a specified risk.
2. The policyholder does not read the exclusions.
3. The premium is not paid as required.
4. A covered event occurs.

Column II

A. Policy benefits may be affected depending on the applicable terms
B. The policyholder may not understand the actual scope of protection
C. Insurance may help manage the financial consequence subject to policy conditions
D. The arrangement is intended to transfer/manage specified financial risk

Options

A. 1-C, 2-B, 3-A, 4-D
B. 1-D, 2-B, 3-A, 4-C
C. 1-B, 2-A, 3-D, 4-C
D. 1-A, 2-D, 3-C, 4-B

Q60. Match each insurance decision with the most appropriate consideration.

Column I

1. Choosing coverage
2. Comparing policies
3. Filing a claim
4. Renewing a policy

Column II

A. Check eligibility, documentation and applicable conditions
B. Review whether the protection still fits the financial risk
C. Compare coverage, exclusions, costs and other terms
D. Determine which risks and financial losses need protection

Options

A. 1-C, 2-D, 3-B, 4-A
B. 1-D, 2-C, 3-A, 4-B
C. 1-B, 2-A, 3-D, 4-C
D. 1-A, 2-B, 3-C, 4-D

PART G – PERSONAL INCOME TAX

Q61. Match the tax-related concept with its meaning.

Column I

1. Personal income tax
2. Tax liability
3. Tax planning
4. Tax record

Column II

A. Amount of tax payable according to applicable rules and circumstances
B. Organising financial affairs while following applicable tax laws
C. A record supporting income, deductions or tax-related transactions
D. Tax imposed on an individual’s taxable income under applicable law

Options

A. 1-D, 2-A, 3-B, 4-C
B. 1-B, 2-C, 3-D, 4-A
C. 1-C, 2-D, 3-A, 4-B
D. 1-A, 2-B, 3-C, 4-D

Q62. A person wants to manage taxes responsibly. Match the action with its purpose.

Column I

1. Keeping income records
2. Understanding applicable tax rules
3. Filing required information honestly
4. Planning finances after considering tax obligations

Column II

A. Helps ensure tax-related decisions follow the law
B. Helps calculate and document relevant financial information
C. Helps avoid deliberately concealing taxable information
D. Helps estimate disposable income and financial resources

Options

A. 1-A, 2-B, 3-D, 4-C
B. 1-B, 2-A, 3-C, 4-D
C. 1-D, 2-C, 3-B, 4-A
D. 1-C, 2-D, 3-A, 4-B

Q63. Match the situation with the appropriate tax interpretation.

Column I

1. An individual earns taxable income.
2. Tax rules determine how much tax is payable.
3. A person keeps relevant financial records.
4. A person deliberately hides income to avoid tax.

Column II

A. Supports accurate tax-related reporting
B. Can constitute unlawful tax evasion
C. Tax obligations may arise according to applicable law
D. Applicable rules help determine tax liability

Options

A. 1-D, 2-C, 3-B, 4-A
B. 1-C, 2-D, 3-A, 4-B
C. 1-A, 2-B, 3-D, 4-C
D. 1-B, 2-A, 3-C, 4-D

Q64. Match the tax-related action with its financial-planning effect.

Column I

1. Estimating tax liability
2. Keeping proper records
3. Understanding legal deductions or benefits where applicable
4. Ignoring tax obligations

Column II

A. Can create financial uncertainty or legal consequences
B. Helps estimate the amount available for other financial goals
C. Helps support accurate compliance
D. May reduce taxable income or tax liability where legally permitted and applicable

Options

A. 1-C, 2-B, 3-A, 4-D
B. 1-D, 2-A, 3-B, 4-C
C. 1-B, 2-C, 3-D, 4-A
D. 1-A, 2-D, 3-C, 4-B

Q65. Match the statement with the correct interpretation.

Column I

1. Paying tax reduces the amount of income available for personal use.
2. Tax rules can influence financial planning.
3. Keeping records supports compliance.
4. Hiding income is a form of legal tax planning.

Column II

A. False; concealing income is not lawful tax planning
B. Accurate records can support correct reporting
C. Tax obligations should be considered when planning disposable income
D. Financial goals should account for applicable tax obligations

Options

A. 1-D, 2-C, 3-B, 4-A
B. 1-C, 2-D, 3-B, 4-A
C. 1-A, 2-B, 3-D, 4-C
D. 1-B, 2-A, 3-C, 4-D

Q66. Match the tax-planning activity with its purpose.

Column I

1. Checking applicable rules
2. Maintaining income records
3. Estimating tax payable
4. Planning post-tax savings

Column II

A. Helps determine how much may remain available after tax
B. Helps understand current legal requirements
C. Helps support accurate calculation and reporting
D. Helps connect tax obligations with financial goals

Options

A. 1-C, 2-D, 3-A, 4-B
B. 1-B, 2-C, 3-A, 4-D
C. 1-D, 2-A, 3-B, 4-C
D. 1-A, 2-B, 3-D, 4-C

Q67. Match each situation with the appropriate financial consequence.

Column I

1. Tax liability is underestimated.
2. Tax liability is considered while preparing a budget.
3. Accurate income records are maintained.
4. Applicable legal tax benefits are properly considered.

Column II

A. Financial planning can better reflect disposable income
B. The risk of inaccurate reporting can be reduced
C. The person may face a mismatch between expected and actual tax obligations
D. Tax liability may be reduced where the law permits and conditions are satisfied

Options

A. 1-C, 2-A, 3-B, 4-D
B. 1-A, 2-C, 3-D, 4-B
C. 1-D, 2-B, 3-A, 4-C
D. 1-B, 2-D, 3-C, 4-A

Q68. Match the tax-related statement with the most appropriate conclusion.

Column I

1. Taxes are compulsory payments under applicable law.
2. Tax revenue can be used by governments for public purposes.
3. Tax liability depends on applicable rules and circumstances.
4. Tax planning means hiding income.

Column II

A. False; lawful tax planning involves compliance with applicable rules
B. Tax obligations are determined within the relevant legal framework
C. Taxes provide government revenue
D. Tax payment is a legal obligation where applicable

Options

A. 1-C, 2-D, 3-A, 4-B
B. 1-D, 2-C, 3-B, 4-A
C. 1-A, 2-B, 3-D, 4-C
D. 1-B, 2-A, 3-C, 4-D

Q69. A student is explaining responsible tax management. Match the action with the correct purpose.

Column I

1. Keeping tax documents
2. Understanding tax obligations
3. Estimating post-tax income
4. Following legal tax provisions

Column II

A. Helps plan savings and expenditure using realistic available income
B. Supports compliance and appropriate use of lawful provisions
C. Helps provide evidence for relevant financial information
D. Helps determine what tax responsibilities apply

Options

A. 1-C, 2-D, 3-A, 4-B
B. 1-D, 2-A, 3-B, 4-C
C. 1-B, 2-C, 3-D, 4-A
D. 1-A, 2-B, 3-C, 4-D

Q70. Match the financial-planning situation with the most appropriate tax-related response.

Column I

1. A person is preparing a yearly financial plan.
2. A person is unsure about applicable tax rules.
3. A person is preparing tax-related records.
4. A person wants to reduce tax illegally by hiding income.

Column II

A. Seek accurate information about the applicable rules
B. Do not use concealment; follow lawful tax provisions
C. Include expected tax obligations when planning finances
D. Maintain relevant and accurate documentation

Options

A. 1-A, 2-C, 3-D, 4-B
B. 1-C, 2-A, 3-D, 4-B
C. 1-D, 2-B, 3-A, 4-C
D. 1-B, 2-D, 3-C, 4-A

DETAILED ANSWER KEY

Topic 1 – Personal Financial Management

Q	Answer	Correct Matching	Explanation
1	A	1-B, 2-D, 3-A, 4-C	Expense records show spending; goals guide decisions; emergency reserves help with unexpected needs; debt assessment checks repayment ability.
2	B	1-C, 2-A, 3-D, 4-B	Tracking identifies spending, priorities separate needs, savings become a planned target, and review checks actual performance.
3	C	1-B, 2-A, 3-D, 4-C	Comparing income and expenses assesses cash flow; unnecessary spending can be reduced; goals give direction; debt must be assessed for affordability.
4	D	1-C, 2-D, 3-B, 4-A	Tracking solves uncertainty, saving supports the bicycle goal, emergency money can help with unexpected costs, and borrowing should be assessed.
5	A	1-D, 2-B, 3-C, 4-A	Goals provide direction, records reveal spending, reserves help with emergencies, and debt assessment considers affordability.
6	B	1-A, 2-B, 3-C, 4-D	Overspending requires adjustment; higher savings improve the outcome; unnecessary expenses can be reconsidered; new goals guide future decisions.
7	C	1-B, 2-A, 3-C, 4-D	Tracking shows patterns, goal-based saving directs money, needs-versus-wants supports priorities, and review helps correct weak decisions.
8	B	1-B, 2-D, 3-C, 4-A	Limits control expenditure, delaying gives time to reconsider, comparison helps judge alternatives, and reviewing purchases builds learning.
9	D	1-D, 2-B, 3-C, 4-A	Poor tracking requires records; education requires goal-based saving; emergencies call for reserves; credit purchases require repayment assessment.
10	B	1-B, 2-C, 3-D, 4-A	Borrowing requires repayment assessment; saving needs a sustainable amount; purchases should be necessary and affordable; emergency funds need a target.

Topic 2 – Inflation and Purchasing Power

Q	Answer	Correct Matching	Explanation
11	C	1-D, 2-A, 3-C, 4-B	Broad sustained price increases indicate inflation; unchanged income can lose purchasing power; income can rise yet real purchasing power fall; one product alone is insufficient.
12	B	1-B, 2-A, 3-C, 4-D	General price increases indicate inflation; fewer goods for the same money means lower purchasing power; unchanged income buys less; persistent general increases are inflation.
13	C	1-B, 2-C, 3-A, 4-D	Faster price growth can reduce real purchasing power; broad sustained increases indicate inflation; one product’s price rise alone is not general inflation; savings can lose purchasing power.
14	B	1-D, 2-C, 3-B, 4-A	If prices rise with unchanged income, purchasing power falls; equal growth leaves relative purchasing power broadly unchanged; faster income growth can improve it; faster price growth reduces it.
15	C	1-C, 2-B, 3-A, 4-D	Inflation is a sustained general price rise; purchasing power concerns what money buys; nominal income is money income; real purchasing ability considers price changes.
16	A	1-C, 2-B, 3-A, 4-D	Rising costs make review important; unchanged income may lose purchasing power; goals may need reassessment; future costs should be considered.
17	B	1-D, 2-B, 3-A, 4-C	Money income can rise slower than prices; inflation affects budgets; one price change is insufficient; savings need to consider changing purchasing power.
18	A	1-C, 2-B, 3-A, 4-D	Long-term targets may need revision; expenditure should be reviewed; income should be compared with price growth; future costs may rise.
19	B	1-D, 2-C, 3-B, 4-A	Broad sustained increases are inflation; unchanged income may face reduced purchasing ability; fewer goods mean lower purchasing power; one product change is not enough.
20	C	1-A, 2-B, 3-C, 4-D	Fewer goods for the same money means lower purchasing power; general price increases indicate inflation; faster price growth reduces real purchasing ability; one product’s increase is product-specific.

Topic 3 – Simple and Compound Interest

Q	Answer	Correct Matching	Explanation
21	A	1-C, 2-A, 3-B, 4-D	Simple interest uses original principal; compound interest includes accumulated interest; more time can increase interest; adding interest to the balance creates compounding.
22	B	1-B, 2-C, 3-A, 4-D	Larger principal can increase interest; a higher rate can increase interest; longer time can increase interest; added interest increases the future calculation base.
23	C	1-C, 2-D, 3-B, 4-A	Simple interest uses original principal; compound interest includes accumulated interest; principal is the starting amount; accumulated interest may enter later calculations.
24	B	1-B, 2-C, 3-A, 4-D	Simple interest rises with time; compounding allows interest on earlier interest; larger principal means more money is exposed; frequency can affect the final amount.
25	A	1-D, 2-B, 3-A, 4-C	Principal is the original amount; rate is the percentage; time is the duration; compounding adds interest to the balance.
26	A	1-D, 2-B, 3-C, 4-A	Added interest increases the balance; later interest may be calculated on that balance; the agreed rate continues to apply; longer duration can extend compounding.
27	C	1-D, 2-A, 3-B, 4-C	Original-principal calculation describes simple interest; accumulated interest describes compounding; principal size affects interest; time affects total interest.
28	B	1-B, 2-C, 3-D, 4-A	Methods should be compared; deposits should be compared using relevant terms; duration affects final amount; frequency affects compounding.
29	A	1-B, 2-C, 3-D, 4-A	Compound growth reflects interest on earlier interest; rate affects interest; more time provides more periods; larger principal provides a larger base.
30	C	1-B, 2-C, 3-A, 4-D	Original amount means simple interest; adding earlier interest describes compounding; 5% is the rate; longer duration can increase interest.

Topic 4 – Budgeting

Q	Answer	Correct Matching	Explanation
31	B	1-A, 2-B, 3-C, 4-D	Income establishes resources; expenses show expected uses; savings are planned as a priority; actual-versus-planned comparison supports review.
32	C	1-A, 2-B, 3-C, 4-D	Higher food spending may require adjustment; lower transport spending used fewer resources; missed savings require review; unexpected expenses need inclusion in the revised plan.
33	B	1-C, 2-A, 3-D, 4-B	Essential expenses support important needs; discretionary expenses can generally be adjusted; surplus means income exceeds expenditure; deficit is the reverse.
34	C	1-C, 2-A, 3-B, 4-D	Fixed expenses are relatively stable; variable expenses can change; savings should be reserved; regular review updates the plan.
35	B	1-D, 2-C, 3-B, 4-A	Unplanned purchases require limits; missed savings require prioritisation; actual-versus-planned differences should be reviewed; irregular expenses should be included.
36	A	1-B, 2-D, 3-C, 4-A	Income estimates resources; expense estimates planned uses; savings targets reserve money; actual expenditure tests budget performance.
37	C	1-A, 2-B, 3-D, 4-C	Bills reveal actual spending; emergency provision prepares for unexpected costs; updated estimates improve future budgets; needs-versus-wants supports priorities.
38	B	1-B, 2-C, 3-D, 4-A	Income above expenditure is surplus; expenditure above income is deficit; spending above plan is overspending; spending below plan is favourable.
39	A	1-B, 2-C, 3-D, 4-A	Discretionary spending can be reduced; some current spending can be redirected to savings; revisions respond to actual experience; emergency provision prepares for unexpected costs.
40	B	1-B, 2-A, 3-C, 4-D	Overlooked expenses should be added; unrealistic savings should be reassessed; discretionary increases may be limited; changed income requires recalculation.

Topic 5 – Savings and Investment Options

Q	Answer	Correct Matching	Explanation
41	B	1-C, 2-A, 3-D, 4-B	Fixed deposits operate under specified terms; stocks represent ownership; bonds represent lending to an issuer; mutual funds pool investor money.
42	B	1-B, 2-C, 3-A, 4-D	Risk concerns uncertainty/loss; return concerns possible outcome; liquidity concerns access to money; time horizon concerns the investment period.
43	A	1-C, 2-B, 3-A, 4-D	One stock creates concentration; spreading investments diversifies; near-term needs require liquidity; long-term goals have a longer time horizon.
44	C	1-C, 2-D, 3-A, 4-B	Diversification spreads investments; market risk arises from market changes; liquidity concerns ease of access; return is financial gain or loss.
45	A	1-C, 2-D, 3-A, 4-B	Immediate needs require liquidity; long-term goals need suitable time-horizon considerations; diversification reduces concentration; return compares possible earnings.
46	B	1-A, 2-D, 3-B, 4-C	Stocks fluctuate; bonds have issuer and repayment terms; mutual funds pool money; fixed deposits operate under specified terms.
47	C	1-B, 2-C, 3-A, 4-D	Near-term money needs liquidity; avoiding dependence on one investment involves diversification; possible loss concerns risk; gains concern return.
48	B	1-C, 2-B, 3-A, 4-D	Investments should match goals; concentration can be reduced by diversification; immediate needs require liquidity; investment comparison should consider multiple factors.
49	B	1-D, 2-A, 3-B, 4-C	Diversification reduces concentration; it cannot guarantee profit; higher potential returns may involve uncertainty; mutual funds are not automatically risk-free.
50	B	1-B, 2-C, 3-D, 4-A	Fixed deposits require term and withdrawal information; stocks require company/market assessment; bonds require issuer and repayment terms; mutual funds require scheme information.

Topic 6 – Risk and Insurance

Q	Answer	Correct Matching	Explanation
51	A	1-B, 2-D, 3-C, 4-A	Premium is the payment; coverage is the protection; exclusions identify non-covered situations; a claim requests benefits.
52	B	1-C, 2-A, 3-B, 4-D	Reading terms explains protection; exclusions identify limits; premiums are required payments; claims seek benefits after covered events.
53	B	1-C, 2-D, 3-B, 4-A	Insurance manages financial consequences of specified risks; exclusions identify limits; comparison considers cost and protection; documents support access to information.
54	B	1-B, 2-C, 3-A, 4-D	Policies have defined limits; premium is paid according to terms; claims involve the claim process; policy comparison considers protection, exclusions and cost.
55	A	1-C, 2-A, 3-B, 4-D	Insurance manages financial consequences; it does not prevent events; claims are subject to conditions; policy terms determine protection.
56	B	1-C, 2-B, 3-A, 4-D	Premium answers the cost question; coverage identifies protection; exclusions identify non-covered situations; claim conditions identify requirements.
57	B	1-D, 2-C, 3-B, 4-A	Insurance can manage specified risk; exclusions must be understood; claims require checking conditions; renewal should review continuing suitability.
58	B	1-B, 2-A, 3-C, 4-D	Premium is cost; coverage is protection; exclusions identify limitations; claims seek benefits after covered events.
59	B	1-D, 2-B, 3-A, 4-C	Insurance manages specified risk; ignoring exclusions creates misunderstanding; failure to meet payment terms can affect benefits; a covered event may lead to benefits subject to conditions.
60	B	1-D, 2-C, 3-A, 4-B	Choosing coverage requires identifying risks; comparing policies requires comparing terms; claims require conditions/documentation; renewal requires reviewing suitability.

Topic 7 – Personal Income Tax

Q	Answer	Correct Matching	Explanation
61	A	1-D, 2-A, 3-B, 4-C	Income tax is imposed under applicable law; tax liability is tax payable; tax planning must follow the law; records support tax-related information.
62	B	1-B, 2-A, 3-C, 4-D	Income records support calculations; tax rules guide compliance; honest filing avoids concealment; tax planning affects disposable income.
63	B	1-C, 2-D, 3-A, 4-B	Taxable income can create obligations; rules determine liability; records support accurate reporting; deliberately hiding income can constitute evasion.
64	C	1-B, 2-C, 3-D, 4-A	Estimating tax helps determine available income; records support compliance; lawful provisions may reduce liability where applicable; ignoring tax obligations can create consequences.
65	B	1-C, 2-D, 3-B, 4-A	Tax reduces disposable income; tax rules affect planning; records support compliance; hiding income is not lawful tax planning.
66	B	1-B, 2-C, 3-A, 4-D	Rules explain obligations; records support calculation; estimated tax helps determine post-tax resources; planning connects tax with goals.
67	A	1-C, 2-A, 3-B, 4-D	Underestimating liability can create a mismatch; budgeting for tax improves planning; records support reporting; lawful provisions may reduce liability where permitted.
68	B	1-D, 2-C, 3-B, 4-A	Taxes are legal obligations; tax revenue supports government purposes; liability depends on applicable rules; hiding income is not lawful tax planning.
69	A	1-C, 2-D, 3-A, 4-B	Documents support financial information; rules identify obligations; post-tax income supports realistic planning; lawful provisions must be followed.
70	B	1-C, 2-A, 3-D, 4-B	Tax obligations belong in financial planning; uncertainty about rules should be resolved accurately; records should be maintained; illegal concealment must be avoided.

TABULAR ANSWER KEY

Q	Ans	Q	Ans	Q	Ans	Q	Ans	Q	Ans
1	A	15	C	29	A	43	A	57	B
2	B	16	A	30	C	44	C	58	B
3	C	17	B	31	B	45	A	59	B
4	D	18	A	32	C	46	B	60	B
5	A	19	B	33	B	47	C	61	A
6	B	20	C	34	C	48	B	62	B
7	C	21	A	35	B	49	B	63	B
8	B	22	B	36	A	50	B	64	C
9	D	23	C	37	C	51	A	65	B
10	B	24	B	38	B	52	B	66	B
11	C	25	A	39	A	53	B	67	A
12	B	26	A	40	B	54	B	68	B
13	C	27	C	41	B	55	A	69	A
14	B	28	B	42	B	56	B	70	B