MCQ Chapter 5 Managing Your Personal Finances Class 9 SST

1. What does time horizon mean when making an investment decision?

The amount of income earned in one month

The total interest paid on a loan

The time required to prepare a budget

The length of time for which money can remain invested

Question 1 of 20

2. Which statement best describes the relationship between risk and return?

Higher-risk investments may offer higher potential returns

Every investment provides the same return

Lower-risk investments always provide the highest returns

Risk has no connection with investment decisions

Question 2 of 20

3. Which investment option generally offers relatively low risk and steady but comparatively lower returns?

Shares of companies with fluctuating prices

Investments selected without any planning

Fixed deposits

Unnecessary consumer purchases

Question 3 of 20

4. Which investment option has the potential to generate high long-term returns but also involves substantial risk?

Keeping cash in a piggy bank

Shares or equity

A written household budget

A monthly insurance premium

Question 4 of 20

5. Why should an investor consider when they will need their money?

To avoid calculating their income

To ensure that every investment has the same maturity period

To guarantee that market prices never change

To select investments that suit their financial goals and time horizon

Question 5 of 20

6. What are taxes?

Compulsory payments made by individuals and businesses to the government

Voluntary gifts given only to relatives

Profits earned from buying shares

Savings deposited in a bank account

Question 6 of 20

7. Which of the following is an example of a direct tax?

Goods and Services Tax on a purchase

A payment made into a savings account

Income tax

Interest received from a bank deposit

Question 7 of 20

8. Which of the following is an example of an indirect tax?

Personal savings

Goods and Services Tax (GST)

Interest from a fixed deposit

Dividends from company shares

Question 8 of 20

9. What is personal income tax?

A payment made to purchase a fixed deposit

A fee paid for borrowing money from relatives

A monthly contribution to an insurance pool

A tax paid on the income a person earns during a financial year

Question 9 of 20

10. What is progressive taxation?

A system in which higher incomes are subject to higher tax rates

A system in which everyone always pays the same amount of tax

A system in which only purchases are taxed

A system in which income is never taxed

Question 10 of 20

11. What is the purpose of the income tax slab system?

To charge tax only on household expenses

To ensure that every person pays an identical amount

To divide taxable income into ranges and apply specified tax rates

To calculate the interest paid on bonds

Question 11 of 20

12. Which ministry proposes income tax slabs as part of the Union Budget presented to Parliament?

Ministry of Education

Ministry of Finance

Ministry of Transport

Ministry of Agriculture

Question 12 of 20

13. Which organisation is responsible for administering the laws relating to direct taxes in India?

Bombay Stock Exchange

A mutual fund management company

A commercial bank

Central Board of Direct Taxes (CBDT)

Question 13 of 20

14. What is a standard deduction?

A fixed amount that eligible salaried employees and pensioners can deduct from their income before calculating income tax

The total interest earned from company shares

The monthly payment made to repay a loan

The amount paid to purchase an insurance policy

Question 14 of 20

15. A salaried person earns ₹14,00,000 annually and receives a standard deduction of ₹75,000.What is the taxable income?

₹14,75,000

₹14,00,000

₹13,25,000

₹12,25,000

Question 15 of 20

16. According to the tax slab table for FY 2025–26, what is the tax rate for annual income up to ₹4 lakh under the new tax regime?

Nil

10%

15%

Question 16 of 20

17. According to the tax slab table for FY 2025–26, what is the tax rate for the ₹4 lakh–₹8 lakh income slab?

Nil

10%

15%

Question 17 of 20

18. According to the worked example, how much income tax does Priya pay on a taxable income of ₹13,25,000?

₹78,750

₹75,000

₹85,000

₹1,00,000

Question 18 of 20

19. Sai's taxable income is ₹3,80,000 in a financial year.How much income tax does he pay under the given tax slabs?

₹19,000

₹38,000

₹0

₹3,800

Question 19 of 20

20. Why is paying taxes honestly and on time an important responsibility of citizens?

It guarantees that every citizen will earn the same income

It helps fund public services and contributes to the country's development

It eliminates the need for household budgeting

It ensures that all investments provide guaranteed profits

Question 20 of 20

Leave a Reply Cancel reply

CBSE Board English Medium

CBSE Board Hindi Medium

बिहार बोर्ड

उत्तर प्रदेश बोर्ड

महाराष्ट्र बोर्ड

मध्य प्रदेश बोर्ड

ગુજરાત બોર્ડ

PSC Exam Preparation