1. 1what is personal financial planning ?

Ans:
1.Plane your spending: make a budget to track your money
2.Save money: keep some money for emergency and future plans.
3. Invest: grow tour money by making smart investment.
4. Manage debts: pay off what you own and avoid unnecessary debts.
5. Get insurance: protect yourself with health, life and property insurance.
6. Plane your re rement: save for the future when you are not working anymore.

2. Give the meaning of current assets. Men on any 4 current assets ?

Ans: Current assets are the assets that can be converted to cash or cash equivalent with in space
of one year.
Ex: 1. cash and cash equivalent, 2. Accounts receivable, 3. marketable securi es,
4. short term investment.

3. What is candles ck pa ern ?

Ans: 1. Candles ck pa ern shows price movement on a chart.
2. each pa ern represents open, close, high, & low prices in a specific me frame.
3. used by traders to predict future price changes.
4. Common pa ern include doji, hammer, shoo ng star etc.,

4. State any four advantage of mutual fund ?

Ans: 1. Mutual funds help to spread the risk by inves ng in different things.
2. you can easily buy or sell your mutual fund shares when you want to.
3. you do not need a lot of money to start inves ng in mutual funds.
4. manager regulary tell you where your money is invested, making thing straigh orward

5. Define macro economics ?

Ans: macro economics is the branch of economics , that deals with en re behaviour of
en re economy .

6. Define micro economics?

Ans: It is a branch of economics that deals with study of individual economics units in detail.
In Consumer, resources price , supply, demand .
7. What are primary market and secondary market ?
Ans:
Primary market
1. Primary market is market at which
company go to sell their stocks or
bonds for the first me
2. Only buying of securi es takes
places
4. Prices are determined by manger
and company
Secondary market
1. Secondary market is a market at
which the stock , bonds are
exchange.
3. Both buying and selling of
securi es can take place.
2. Price are determined by demand
and supply for securi es.

8. List any 4 tools of digital payment system?

Ans: 1. USSD code 2. Mobile money transfer 3. UPI based payment pla orm.
3. QR code based payment system.

9. Give the meaning of mobile wallet ?

Ans: A mobile wallet is a digital wallet service accessed through a mobile app, allowing users to
store , manage, & make electronic transac ons using their mobile device.
Like payment, storing payment card informa on
EX : Dg locker

10.What do you mean by health insurance ?

Ans: health insurance is type of coverage that pays a medical and surgical expenses in case of
serious health problem.
It provide a financial protec on for medical treatments.

11.What is pension plans ?

Ans: 1. Saving for Re rement, 2. Regular income A er Re rement. 3. Financial securi es .

12.What is Demat Account ?

Ans : A demat account is an electronic Account that holds and track your financial securi es in
digital format.
Demat account are primarily used for trading & inves ng in stock, mutual funds, bonds.

13.What is the meaning of mutual funds?

Ans : Mutual funds are like team investment. Many people put their money together , and a
manager decides where to invest it. Profits or losses are shared among the team member
based on how much money they put in.

14. What do you mean by me value money ?

Ans : me value of money is the idea that having money now is be er than having the same
amount later because money can grow or earn interest over me.
It’s like saying a dollar $ today is worth more than dollar $ tomorrow.
1. Differen ate between micro and macro economics ?
Ans:
Micro Economics Macro economics
1. It is a branch of economics that It is a branch of economics that deals with
deals with study of individual thre en re behaviour of en re economy.
economics units in detail. In
Consumer, resources price , supply,
demand .

2. It deals with individual market It deals with whole economy (GDP)

3. Effect on price of a good Infla on
4. Individual labour market Employment / un employment
5. It deals on individual consumer It deals on Aggregate (AD)
behaviour
6. It deals on supply of goods It deals on produc vity of economy

2. Explain the various type of bank deposit ?

Ans: 1. Saving bank account :
 It is a type of bank account which is opened by people to save a part of their income and
earn interest on their saving.
 There are restric on on withdrawals.
 Withdrawals can be made with the help of cheques or slip.
 A normal rate of interest is paid on saving account.
 Saving account holder do not enjoy overdra facility.
 The minimum balance maintain is less.
 It is suitable for middle class people because the saving account is primarily saving
oriented.
2 current account:
 It is a type of bank account which is opened by a businessmen to help in se lement of
business transac on.
 There is no restric on on withdrawels.
 Withdrawals can be made with the help of cheque only.
 Generally no interest is paid on current account.
 Current account holder can enjoy overdra facility.
 The minimum balance to kept is more .

3 fixed deposit : * The FD means deposit a money for fixed period and a er withdrawals
with interest. It is also known as term deposit.
4 Recurring Deposit : * The (RD) under this deposit , fixed money is deposit every month for
specific period. And collect a er the expery date or with in the me depending on usage.
3. Briefly explain the new banking model ?
Ans: shi toward online and mobile banking for costumer.
 Analyzing customer date for be er insights .
 Decreasing physical branches in favour of digital channels.
 Using a blockchain technology.
 Providing various type of benifical saving accounts.
 Mange the me flow.
 Make digital India. And make people become smart.

Thuse the technology has come with advantage. But it also has its nega ve effect:
Hacker: Hacker are the computer export who use his knowledge to gain unauthorized access
to computer network.
Informa on technology Act 2000 doesn’t make hacking per se an offence.

Crackers: Crackers on the other hand use informa on causes disrup on to the network for
personal and poli cal mo ves. Hacking by the insider or an employ is quite prominent in
present date. Sec on 66 (b) of the informa on technology Act 2000 , provide punishment for
the 3 year jail and 2 lakh of fine.

4. Briefly explain the func on of stock exchange. ?

 It’s like a marketplace for trading company stocks.
 Helps decide how much stocks are worth on supply and demand.
 Provides an organized way to people to buy and sell stocks.
 Businesses can raise money by pu ng their share on the exchange.
 It is a investor playground.
 It is a smooth transac ons.
 The stocks market up and down can be tell us about the economy.
 It calculate overall market doing.
 It is a economic signal.
5.Briefly explain the types of mutual funds ?
Ans: there are several types of mutual funds available for investment , through most mutual fund
fall on of 4 types which are:
1. Stock fund
2. Bond fund.
3. Index fund.
4. Balanced fund.
5. Money market fund.
6. Target - date fund.

1. Stock fund: As the name implies this fund invest in stock.

Many people pool their money together.
The money is used to by a mix of different company stocks.
Professionals make decisions to try and grow the pooled money.
2. Bond fund:
 bond fund pool money from investors to buy a variety of bonds.

 Their aim to generate income for investor through interest payment on the bonds.

 The bond fund is managed by professional who make decision to maximize returns.
3. Index fund:
 index funds copy how a market index performs.
 They don’t pick stocks, just follow the index.
 Offers broad exposure to various assets in the chosen index.

4. Balanced fund:
 balanced funds have a mix of stocks, bonds maybe more.
 They aim to balance risky by spreading money across different types of investment.
 Designed to offer moderate growth without too much risk.

5. Money market fund :

 Money market fund invest in safe , short- term thing.
 They try to keep each share’s value around $1.
 Good for short- term needs, with easy access to your money.
6. what are the advantage of mutual fund ?
1. High return.
2. Reduce risk.
3. Professional management.
4. Tax relief.
5. High liquidity.
6. Accessibility.
7. Automa c reinvestment.

7.Disadvantage of mutual fund ?

1. Fees & Expenses.
2. Over diversifica on.
3. Tax consequences.
4. Market risk.
5. Sales Load.
6. Cash drag.
7. Limited flexibility.
 Financial analysis:

1. Explain the types of financial Analysis. ?

1. Ver cal Analysis: * this type of financial analysis involves looking at a various components of
the income statement and dividing them by revenue to express them in
percentage.

2. Horizontal Analysis: * Horizontal Analysis involves taking several years of financial data and
comparing them to each other to determine a growth rate.

3. Leverage Analysis: * Leverage Analysis in ra o form

Its help to compare it to a company total equity to get a full picture of the
capital structure

4. Profitable Analysis : * it is a type of income statement analysis where an analysist assesses how
a rac ve the economics of the business are.

5. Efficiency Analysis: * these ra o look at how well a company manages its assets and use them to
generate revenue and cash flow.

6. valua on Analysis : * the process of es ma ng what a business is worth in component of

financial analysis of a company.

2. Explain the importance of financial Analysis. ?

1.Plane your spending: make a budget to track your money
2.Save money: keep some money for emergency and future plans.
3. Invest: grow tour money by making smart investment.
4. Manage debts: pay off what you own and avoid unnecessary debts.
5. Get insurance: protect yourself with health, life and property insurance.
6. Plane your re rement: save for the future when you are not working anymore.
7. financial planning reduce uncertain es with regards to change market trends which can be
faced easily through enough funds.
8. It helps in stability & profitability .
3. Discuss the various financial goals. ?
Financial goals compare earning, saving, inves ng and spending in proper es that match your
short – term , medium -term or long- term plans.

Types of financial goals:

1. Short term goals:
 short – term goals are something to achieve in next few monts.
 These are required for the more immediate expenses . these expenses are genearly in
scope & easer to project and predict.

2. Medium term goal:

 Medium term lies between short- term and long – term
 Short term goals have typical me line & long – term goal are planned decade or more.
 Personal lone can be classified under medium – term goal.
 It is cri cal for analysis your progress against long term goal.

3. Long – term goal :

 Long term require more me.
 For re rement planning,
 For buying house, and funding a children higher educa on are typical long term goal.

Example for financial goals:

 Emergency fund:
 Re rement .
 Start up.
1. Discusses the need for banking?
Ans: The purpose of banking system is to give securi es and confidence to the economy.
A banking system operates in line with managing the flow of money between people and
business.
The need of a bank are men oned here:
1. Accep ng withdrawals and deposit .
2. providing loans.
3. Offering different type of accounts.
4. internet banking system.
5.customer support.
6. Credit & debit card.
7. bill payment.

2. Explain the various func ons of bank. ?

Ans: primary func on:
 Acceptance of deposit from public.
 Leading of funds: money received by a commercial banks in form of deposit is not kept
ideal as it is lent at interest to business establishments.
Commercial bank provide loans and advance on personal security
 Debit & credit card
 Transferring funds.

Secondary func on:

Case 1 :
 Purchase and seal of securi es.
 Ac ng as administrators.
 Payment & collec on of subscrib on, salries, pension.
 Ac ng as A orney.

Case 2:
 Providing a cheques for travellers.
 merchant banking.
 Safety lockers.
 Gi cheques.
 Credit card.
 Tax consultancy.
 Housing finance .
 Foreign exchange Credit.
 Net banking.
 3. Advantage of debit card.?
 Alterna ve of cash,
 Immedite transfer of funds.
 Instant withdrawal of cash.
 Cash bank.
 It is easy to carry anywhere in the word.
 It gives more me to repay.
 EMI facility is available upon request.
 Free insurance coverage on certain card.
 Discount available in certain place.

4. Disadvantage of debit card ?

 High interest rate on extend credit period.
 High chances of misuse a er online transac on.
 Bad credit ra ng upon nonpayment.
 Repeated calls from bank for repayment.
 RBI maintain a credit ra ng history for each person having a banking product.

5. Explain the various func on of RBI. ?

1. Monetary policy.
2. Regula on & supervision of the banking and non- banking financial ins tu ons, including
credit informa on companies.
3. Regula on of money, forgine exchang.
4. Bankers to bank.
5. Bankers to the Central & state bank.
6. Currency management.
7. Development role.
8. Research and sta s cs.

6. Different between GNP & GDP. ?

Ans:
Gross Na onal Product. (GNP)
GNP is defined as, total market value of all
final goods and service produce in a country
in a year me.
GNP is a total out-put of goods and service
produced in a year.
GNP = GDP + X- N
Gross Domes c Product (GDP)
GDP is defined as, Total value of all goods
and service produced with that region
during a specified period
It refers the total amount of money spend
In a year
GDP = Consump on + Investment +
Government Expenditure + Export +Imports
1. explain the various investment produce ?
1) Banking saving: A saving account is a type of bank account typicaly for saving money. Its
pays a nominal interest rate.
2) Govt. schemes: these are launched by government to improve standard of living of all
ci zen. They are typically 2 types, 1. Central sector. 2. Centrally sponsored schemes.
3) Sukanya samridhi yogana: (SSY): it proved higher rate of interest then other saving plans.
That offer financial security for the girl child.
4) Na onal saving cer ficate : (NSC): it is a foxed income investment scheme that you can
open easily with post office.
5) Pradhana mantri Jan Dhan Yojana: ( PMJDC)”;
 it’s a na onal mission for financial inclusion to ensure to financial service, namely ,
banking manner .
 Account is open by any bank.
 Account opened under PMGDY are being opened with Zero account.
 Account holder wishes to get Cheque book but have to fill minimum balance .
6) prime minister Vaya Vandana Yojana: (PMVVY): based on insurance
7) Sovereign gold Bond: (SGB)
8) Re rement saving
9) Na onal pension Scheme
10) Atal Pension Yojana: (APY): * it is a government scheme.
* paying a fixed amount on this scheme up to 60 year
* according to the money you pay you will get a fixed amount
every moth a er 60 year and a accidental insurance

2. what are the feature of SSY ?

SSY: ( Sukanya samridhi yogana: (SSY)

 Deposit limit: min -250 max- 1,50,000
 Account holder: child is below 18 Account holder is parents & above 18 its by girl.
 Maturity: 21 years a er opening the account.. deposit at lest 15 year.
 Document required: birth cer ficate , pan- no, & adhar.
 Deposit: deposit can bee made through the online, NEFT, Cash or Cheque.
3. What are the benefit of NPS ?
1. It is investment op on & choice of pension funds for the planning the growth of the
investment in resonable manner
Open: account is opened funder NPS i.e, permanent re rement Account number (PRAN)
 It is an on- withdrawable permanent re rement account in to which the regular
employes are invested as per fund chosen by people.
 It provide a lone.
 Period --- 35-40 year.
 10% detected by employes every month.
 Government added 10% extra amount according to deposit of govt. employes.
 The government invest the amount in share market.
 The share market amount is give in form of pension a er re rement.
 Insurance clime.

4. Different between capital market & Money market ?

Capital market
1. It is a market for long term fund
2. it deals with shares, bond
3. Development bank & insurance
companies are the primary player
4. there is a mediators who transca on
money
Money market
1. it is a short term fund.
2. it deals with commercial paper,
exchange,
Cer ficate of deposit.
3. Central Bank and commercial banks are
the major player
4. There are no brokers involved in
transac on money market

5. Explain the func on of primary market ?

 The primary market is where newly created stocks & bonds, are ini ally offered to the public.
 Companies use the primary market to raise capital by selling these securi es directly to
investor.
 IPO are the common method in primary market.
 Private company can become publicly traded by entering the primary market.
 The ini al price are determined by factors like company value & market demand.

 Se ng up new business
 Issue new bonds, stocks.
 Conver ng private capital into public capital.
6. Explain the func on of secondary market ?
 Secondary market is like a marketplace where people can buy or sell stocks & bonds that
were already issued In primary market.
 Price in the market are determined by how much people want to buy or sell.
 People can make money if their investment go up in value & lose money if the price go
down when they sell.
 Everything that happing in this market is visible to public.
 Investors can adjust their investments based on market changes.

 It is a trading pla orm.

 Investor profit & loss.
 Market is transparency.
 Capital recycling.
 Risk management.