MCQ Chapter 5 Managing Your Personal Finances Class 9 SST

1. What is the main purpose of protection and risk management in personal finance?

To increase unnecessary spending

To avoid all financial planning

To ensure that every investment earns the same return

To safeguard money and assets against financial risks

Question 1 of 20

2. What is insurance?

A legal contract under which an insurer provides compensation for specified covered losses in return for a premium

A method of purchasing shares without paying money

A guarantee that no accident or illness will occur

A system for calculating a person's monthly budget

Question 2 of 20

3. What is a premium in insurance?

The profit earned from selling shares

The principal amount of a bank loan

The amount paid to an insurance company for insurance coverage

The income tax deducted from a person's salary

Question 3 of 20

4. What principle allows insurance companies to provide financial support to people who suffer unexpected losses?

Compounding

Risk sharing

Impulse buying

Progressive taxation

Question 4 of 20

5. Which type of insurance helps cover hospitalisation, medicines, diagnostic tests, and treatments?

Crop insurance

Motor insurance

Life insurance

Health insurance

Question 5 of 20

6. Which government scheme mentioned in the chapter provides health insurance coverage to eligible low-income households in India?

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana

National Savings Certificate

Sukanya Samriddhi Yojana

Public Provident Fund

Question 6 of 20

7. What is the primary purpose of life insurance?

To cover only vehicle repair costs

To protect crops against pests

To provide financial support to a family if the policyholder dies

To guarantee profits from stock market investments

Question 7 of 20

8. Which type of insurance protects against losses involving vehicles, homes, businesses, and other property?

Life insurance

General insurance

Only health insurance

Education savings insurance

Question 8 of 20

9. Which insurance can help cover repair costs and damages caused by vehicle accidents?

Life insurance

Crop insurance

Health insurance

Motor insurance

Question 9 of 20

10. Which type of insurance protects homes and businesses against losses caused by fire, theft, floods, and earthquakes?

Property insurance

Life insurance

Health insurance

Cattle insurance

Question 10 of 20

11. Which type of insurance helps farmers manage financial losses caused by natural disasters, pests, and market price changes?

Motor insurance

Life insurance

Crop insurance

Health insurance

Question 11 of 20

12. What does cattle insurance protect against?

Losses caused only by changes in share prices

Financial loss resulting from the death or disability of insured animals

Hospital expenses for every member of a family

Damage to vehicles during road accidents

Question 12 of 20

13. When can borrowing or using credit be helpful?

When loans are taken for every unnecessary purchase

When the borrower ignores repayment obligations

When a person borrows without considering their income

When it is used for productive purposes and managed responsibly

Question 13 of 20

14. Which of the following is an example of productive borrowing?

Taking an education loan to pursue higher education

Borrowing money to purchase unnecessary consumer goods

Taking loans without any repayment plan

Borrowing more money to avoid tracking expenses

Question 14 of 20

15. What is debt?

The total amount of money saved for future needs

The interest earned from a fixed deposit

The amount of money owed to somebody

The profit received from company shares

Question 15 of 20

16. What is an EMI?

A yearly income tax return

A fixed amount paid every month to repay a loan

A type of investment in company shares

An insurance payment made only after an accident

Question 16 of 20

17. A family purchases a refrigerator costing ₹30,000 and repays the loan through EMIs of ₹3,000 for 12 months.What is the total amount paid through these EMIs?

₹30,000

₹33,000

₹35,000

₹36,000

Question 17 of 20

18. Which four factors should people consider when deciding where to invest their money?

Risk, return, time horizon, and liquidity

Shopping, entertainment, travel, and advertising

Salary, school fees, food, and clothing only

Premium, debt, tax, and household size only

Question 18 of 20

19. What does investment risk mean?

The guaranteed profit from an investment

The period for which money remains invested

The chance of losing money on an investment

The amount paid as an insurance premium

Question 19 of 20

20. What is investment return?

The amount of money owed to a lender

The profit earned from an investment

The total amount spent on household expenses

The compulsory tax paid on goods and services

Question 20 of 20

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