Unit 10: Systematic Savings and Investments

False (B)

Systematic Investment Plan

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

<p>Savings = Excess of income over expenditure Investment = Sacrificing current consumption Speculation = Bulls and Bears SIP = To earn above inflation Investor = Small amounts can also be invested</p> Signup and view all the answers

<p>Short term investments (A)</p> Signup and view all the answers

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

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

<p>Investment of funds for a short period to yield returns (C)</p> Signup and view all the answers

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

<p>Bulls and bears</p> Signup and view all the answers

<p>15</p> Signup and view all the answers

<p>To ensure liquidity at all times (B)</p> Signup and view all the answers

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

<p>Simple interest is computed only on the principal, while compound interest is calculated on the principal plus any accumulated interest.</p> Signup and view all the answers

<p>₹127.63 (C)</p> Signup and view all the answers

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

<p>Systematic Investment Plan</p> Signup and view all the answers

<p>₹100</p> Signup and view all the answers

<p>Simple Interest = ₹200 Compound Interest = ₹259.4</p> Signup and view all the answers

<p>Allows investment at irregular intervals (D)</p> Signup and view all the answers

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

<p>PV = FV [1 / (1+r)^n]</p> Signup and view all the answers

<p>Equity shares (D)</p> Signup and view all the answers

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

<p>To set aside money for future use or emergencies.</p> Signup and view all the answers

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

<p>Buying chocolates = Wasteful expenditure Purchasing only one costly notebook = Non-economical spending</p> Signup and view all the answers

<p>New clothes (D)</p> Signup and view all the answers

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

<p>Real estate (or Gold, Silver, Diamonds, etc.)</p> Signup and view all the answers

Setting aside a portion of your income for future use.

The use of funds in financial or real assets with the hope of gaining future benefits.

Spending money in a way that does not provide value or is not beneficial.

Spending money unwisely, often on things that are more expensive than necessary.

Investing for a short period with the aim of profiting from price fluctuations. It carries high risk.

The idea that money today is worth more than the same amount of money in the future.

A speculator who believes the price of an asset will rise. They buy low and sell high.

A speculator who believes the price of an asset will fall. They sell high and buy low.

A method of investing regularly, usually a fixed amount, in a chosen investment.

The benefit earned from investing. It can be dividends, interest, capital gain, or appreciation.

The per-unit value of a mutual fund, calculated by dividing the total market value of its assets by the number of outstanding units.

The percentage return on an investment over a period, calculated by considering sales value, purchase price, and any cash received.

Represents ownership in a company and provides voting rights.

The concept that money is worth more today than the same amount in the future.

A fee for borrowing money, typically expressed as a percentage of the amount borrowed for a specific period.

Interest calculated solely on the initial amount borrowed, without factoring in accumulated interest.

The value of an investment at a future point in time, considering interest earned.

The initial amount invested, also known as the principal.

The interest rate applied to an investment, expressed as a percentage.

The number of time periods the investment is held, typically in years.

A method of calculating interest where interest is earned only on the principal amount.

A method of calculating interest where interest is earned on both the principal and accrued interest.

A regular investment strategy that involves investing a fixed amount at regular intervals, like monthly or quarterly.

A way of calculating future value when making regular investments at a fixed rate.

The portion of disposable income that is not spent on consumption.

Employment of funds with the hope of deriving future benefits.

Investments made for a short period of time with high risk.

A fixed amount of money invested in financial assets at regular intervals.

The concept that money available now is worth more than the same amount of money in the future.

Assets that have a physical form, such as real estate, gold, and commodities.