MCQ Chapter 5 Managing Your Personal Finances Class 9 SST

1. What does personal finance refer to?

Managing the money of a large company only

Planning and managing an individual's money to meet needs and wants

Spending all the money immediately after earning it

Lending money to others without planning

Question 1 of 20

2. Why is money considered an important resource that should be used efficiently?

It can fulfil needs and wants and help achieve future goals

It must always be spent on entertainment

It eliminates the need for financial planning

It should never be saved or invested

Question 2 of 20

3. Which of the following is NOT one of the five pillars of personal finance?

Income

Budgeting

Advertising

Protection and risk management

Question 3 of 20

4. Which pillar of personal finance involves the money a person receives from a salary or business?

Saving

Income

Budgeting

Protection

Question 4 of 20

5. How does a teacher generally earn income?

By receiving dividends from shares only

By selling bonds

By receiving rent from property only

By earning a monthly salary

Question 5 of 20

6. What is budgeting?

Planning in advance how income will be spent

Spending money without considering future needs

Keeping all income in cash indefinitely

Borrowing money for every purchase

Question 6 of 20

7. Which of the following is an example of a financial goal?

Spending all pocket money immediately

Buying unnecessary items without planning

Saving money for higher education

Ignoring monthly expenses

Question 7 of 20

8. Which question is most useful when setting a financial goal?

How can I avoid keeping track of money?

How much money will I need?

How can I spend without limits?

Why should I ignore future expenses?

Question 8 of 20

9. What is one important benefit of budgeting?

It guarantees that income will always increase

It removes every possible financial risk

It encourages unnecessary shopping

It helps control unnecessary spending

Question 9 of 20

10. What should a person do first when preparing a budget?

Identify and list all expenses

Invest all available money in shares

Borrow money for future purchases

Ignore small daily expenses

Question 10 of 20

11. A student wants to save ₹3,000 in six months to buy a bicycle.How much should the student save each month?

₹300

₹400

₹500

₹600

Question 11 of 20

12. Why should people regularly track their spending?

To increase their expenses automatically

To compare actual spending with their budget

To avoid setting financial goals

To eliminate the need for saving

Question 12 of 20

13. Why should a budget be reviewed and adjusted periodically?

Financial goals never change

Income and expenses always remain the same

Reviewing a budget increases every expense

Changes in income, expenses, or goals may require adjustments

Question 13 of 20

14. What does saving mean?

Keeping aside part of one's income for future use

Spending income before paying essential expenses

Borrowing money to increase daily spending

Investing without considering future needs

Question 14 of 20

15. Why are savings important in personal finance?

They ensure that unexpected events never occur

They remove the need for a budget

They help people prepare for emergencies and future needs

They guarantee the highest investment returns

Question 15 of 20

16. What is investing?

Spending money only on present wants

Putting savings into assets to protect their value and generate returns

Keeping all savings unused forever

Borrowing money without planning repayment

Question 16 of 20

17. Priya keeps ₹500 in a piggy bank, while Sameer invests ₹500 at an annual interest rate of 8%.How much will Sameer have after one year if the interest is added to the original amount?

₹500

₹520

₹530

₹540

Question 17 of 20

18. What is inflation?

An increase in the prices of goods and services over time

A decrease in the amount of money earned by every person

The process of saving money in a bank

A fixed payment made to an insurance company

Question 18 of 20

19. If a school bag costs ₹1,000 today and its price rises by 6% due to inflation, what may it cost next year?

₹1,006

₹1,050

₹1,060

₹1,600

Question 19 of 20

20. What does purchasing power mean?

The total number of investments owned by a person

The quantity of goods and services that a unit of money can buy

The amount of tax paid by a business

The number of loans a person can obtain

Question 20 of 20

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