Investment and Savings Quiz
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Questions and Answers

What is the primary difference between savings and investment?

  • Savings do not involve risk and do not generate profits, while investments involve risk and aim to generate returns (correct)
  • Savings and investments both involve no risk and do not generate profits
  • Savings and investments both involve high risk and aim to generate profits
  • Savings involve high risk and aim to generate returns, while investments do not involve risk and do not generate profits
  • What is the relationship between risk and returns in investments?

  • Lower risk is associated with higher returns
  • Risk and returns are not related in investments
  • Higher risk is associated with the potential for greater returns (correct)
  • Higher risk is associated with lower returns
  • What impact has the Indian government's focus on boosting capital expenditure had on private sector investments?

  • It has resulted in a domino effect, boosting private sector investments (correct)
  • It has led to an increase in government investments
  • It has had no impact on private sector investments
  • It has led to a decrease in private sector investments
  • What happened to India's gross savings as a percentage of GDP from FY21 to FY22?

    <p>It rose from 28.8% to 30.2%</p> Signup and view all the answers

    What does the involvement of risk in investments make them according to the text?

    <p>Profitable</p> Signup and view all the answers

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