Financial Health & Well-being Quiz
20 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are the three most common methods of transferring money from one bank account to another?

  • NEFT, RTGS, IMPS (correct)
  • Debit Card, Credit Card, Mobile Wallet
  • Cash, Check, Money order
  • Wire transfer, ACH transfer, EFT

What is the definition of a 'debit card'?

A debit card is linked to a bank account and allows the cardholder to pay for goods and services at both physical and online stores, as well as withdraw cash from branches or ATMs.

What is the difference between a 'debit card' and a 'credit card'?

A debit card allows you to spend funds from your bank account, while a credit card allows you to spend from a pre-approved line of credit. When you use a debit card, the money is deducted from your bank account immediately, while a credit card gives you a credit limit and the charges are added to the balance to be paid later, usually with interest.

Financial health is an assessment of your capacity to manage your financial requirements and desires.

<p>True (A)</p> Signup and view all the answers

What are the essential components of financial literacy?

<p>All of the above. (D)</p> Signup and view all the answers

What is the primary function of an insurance company?

<p>Insurance companies provide financial protection against a wide range of risks, such as death, illness, property damage, and liability. They offer policies that provide a payout in the event of a covered event, helping to minimize financial loss and provide peace of mind.</p> Signup and view all the answers

Explain the concept of 'financial inclusion'.

<p>Financial inclusion refers to the process of ensuring that all individuals and communities have access to affordable and appropriate financial products and services, such as bank accounts, savings, loans, and insurance. This aims to empower individuals, particularly those in underserved communities, to participate in and benefit from the financial system.</p> Signup and view all the answers

What is the purpose of a 'credit score'?

<p>A credit score is a numerical representation of an individual's creditworthiness, based on their credit history. It helps lenders assess the borrower's ability to repay their debts and determines the interest rates and loan terms offered.</p> Signup and view all the answers

What is the primary objective of 'financial planning'?

<p>To manage finances effectively to reach financial goals and overcome financial obstacles. (D)</p> Signup and view all the answers

What is the most important reason to create a budget?

<p>A budget helps you take control of your finances by tracking your income and expenses, allowing you to make informed decisions about your spending, saving, and investing. It helps you stay on track to achieve your financial goals, and it can prevent financial stress and debt.</p> Signup and view all the answers

What is meant by 'financial security'?

<p>Having enough money to cover your basic needs and meet unexpected expenses. (C)</p> Signup and view all the answers

Investing in precious metals, such as gold and silver, is considered a low-risk investment strategy.

<p>False (B)</p> Signup and view all the answers

What is the main benefit of investing in real estate?

<p>Real estate can provide a regular income stream through rent and appreciation in its value over time.</p> Signup and view all the answers

What is the main difference between 'term insurance' and 'endowment insurance'?

<p>Term insurance provides financial protection for a specific period, typically in case of death, while endowment insurance offers both death benefits and a maturity payout, making it a savings and investment plan.</p> Signup and view all the answers

What is the primary benefit of a 'mutual fund'?

<p>Mutual funds offer investors the opportunity to diversify their investments by pooling money from multiple investors and investing in a variety of assets, such as stocks and bonds. This helps reduce risk and potentially increase returns.</p> Signup and view all the answers

What does 'tax benefit' mean in the context of insurance?

<p>Certain insurance products offer tax advantages, such as deductions on premiums paid or exemptions on the maturity payout. This can help individuals reduce their overall tax liability and increase their after-tax returns.</p> Signup and view all the answers

It is advisable to have a minimum of three to six months' worth of monthly expenses saved in an emergency fund.

<p>True (A)</p> Signup and view all the answers

What are the three types of investment risks that financial planners consider?

<p>The three major types of investment risks are: market risk, credit risk, and liquidity risk.</p> Signup and view all the answers

What are the six key steps involved in the financial planning process?

<p>The six key steps of financial planning are: 1. Evaluating your current financial situation, 2. Determining your risk profile, 3. Setting financial goals, 4. Creating a contingency plan, 5. Implementing your financial plan, and 6. Reviewing and revising your financial plan.</p> Signup and view all the answers

What is the primary purpose of a 'personal budget'?

<p>All of the above. (D)</p> Signup and view all the answers

Flashcards

Financial Health

The overall well-being related to managing money effectively to achieve financial goals.

Financial Well-being

The state of feeling secure and confident about one's financial situation.

Financial Literacy

Understanding of financial concepts, skills, and knowledge necessary for sound financial decision-making.

Financial Planning

Creating a structured plan to meet future financial needs and goals.

Signup and view all the flashcards

Budgeting

Creating and following a plan for managing income and expenses.

Signup and view all the flashcards

Financial Institutions

Organizations that handle financial transactions and manage funds for individuals and businesses.

Signup and view all the flashcards

Banks in India

Financial institutions offering a range of services, such as savings accounts, loans, and investments.

Signup and view all the flashcards

Fintech Services

Financial services offered through technology, like online banking and mobile payments.

Signup and view all the flashcards

Cashless Banking

Using electronic methods for financial transactions instead of cash.

Signup and view all the flashcards

Credit Score

A numerical representation of an individual's creditworthiness, signifying their ability to repay debts.

Signup and view all the flashcards

Investment

Putting money into something with the expectation of making a profit.

Signup and view all the flashcards

Investment Portfolios

Collections of investments held by an individual or institution.

Signup and view all the flashcards

Saving

Setting aside money for future use.

Signup and view all the flashcards

Life Insurance

A contract in which an insurance company promises to pay a sum of money to a beneficiary upon the death of the insured person.

Signup and view all the flashcards

Retirement Plans

Plans that ensure your financial security during retirement.

Signup and view all the flashcards

Financial Planning Procedure

A systematic process of creating and implementing a plan to achieve financial goals.

Signup and view all the flashcards

Budget Surplus

Excess of income over expenses.

Signup and view all the flashcards

Budget Deficit

Expenses exceeding income.

Signup and view all the flashcards

Personal Budget

A plan for managing personal income and expenses.

Signup and view all the flashcards

Family Budget

A plan for managing the income and expenses of a household.

Signup and view all the flashcards

Study Notes

Course Information

  • Course Code: OEC4
  • Course Title: Financial Health & Well-being
  • Duration: 45 hours
  • Offered to: All students
  • Session: III Semester
  • Credits: 3
  • Hours/Week: 3

Course Objectives

  • To familiarise students with basic concepts of financial health
  • To understand financial planning and budgeting

Course Outcomes

  • Illustrate the framework for financial well-being to understand the overall role finance plays in personal life.
  • Demonstrate an understanding of financial environment and its components
  • Explore the various avenues of investment and insurance plans
  • Comprehend the process of financial planning and budgeting

Reference Books

  • Financial Literacy (Durrant Shaun M): Malvary, LLC
  • Financial Literacy (Malabre Nevar Theodore): Noble Financial Investment
  • Confessions of a Financial Planner (Holland David): Holland Productions
  • Personal Financial Planning (Murali Subbakrishna): Himalaya Publisher
  • Financial Literacy (Mohammed Umair): Himalaya Publisher

Unit Breakdown

  • Unit 1: Foundation to Financial Well-being (10 hours): Role, importance of money, effects of money, Concept of financial health, Financial Literacy Concept and Scope, Prerequisites of Financial Literacy knowledge, Financial skills, and Financial etiquette
  • Unit 2: Financial Environment (8 hours): Types of financial institutions, Classification of Banks in India, Scope of fintech services, Cashless banking, Financial services offered by post office, Credit rating for individuals, Concept, factors considered for computing credit score.
  • Unit 3: Protection and Investment (10 hours): Objectives of investing, Difference between saving and investment, Investment avenues- Investment Portfolios, Physical, Financial, Marketable and Non-Marketable, Need and importance of life and health insurance, Types and importance of life & retirement plans, (NPS), Health Insurance plans
  • Unit 4: Financial Planning and Budgeting (12 hours): Financial planning – Importance, application, procedures, Preparing a budget, Budget surplus & deficit, Avenues for parking surplus, Sources of meeting deficit, Personal and Family Budget - Importance and Pro forma, Steps in preparing an efficient budget, Financial tools for individuals

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Financial Health and Well-being PDF

Description

Test your understanding of financial health concepts, planning, and budgeting with this quiz. Explore important aspects of personal finance and investment avenues to enhance your financial literacy. This quiz is designed for students in the Financial Health & Well-being course.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser