The document contains a quiz about managing finances and business with 35 multiple choice questions. It addresses topics like eligibility for education loans, types of loans, loan application processes, personal finance management tools like budgets and savings accounts, differences between debit/credit cards, sources of funding for education like government loans and scholarships, and specific schemes in India like Vidya Lakshmi and Tamil Nadu Student Assistance Fund. The document is a finance quiz conducted by H. Gowtham and Dr. T. Thilak to help students learn more about managing their money and financing their education.

1. 21 Aug 23

2. H.GOWTHAM / S&H
MANAGING FINANCES
& BUSINESS QUIZ

3. Dr.T.THILAK & H.GOWTHAM / S&H
1.At what age can students typically apply for an education
loan?
a) 16 and above
b) 18 and above
c) 21 and above
d) 25 and above

4. Dr.T.THILAK & H.GOWTHAM / S&H
Answer: b) 18 and above

5. H.GOWTHAM / S&H
2.Which type of loan is designed to support
students pursuing higher education?
a) Business loan
b) Personal loan
c) Education loan
d) Car loan

6. H.GOWTHAM / S&H
Answer: c) Education loan

7. H.GOWTHAM / S&H
3.What is the first step in applying for a
loan?
a) Finding a cosigner
b) Selecting a loan repayment plan
c) Researching loan interest rates
d) Filling out a loan application

8. H.GOWTHAM / S&H
Answer: d) Filling out a loan application

9. H.GOWTHAM / S&H
4.Which bank is known for offering lower interest
rates on education loans?
a) Bank of Education
b) Loan Star Bank
c) Student Saver Bank
d) State Bank of India

10. H.GOWTHAM / S&H
d) State Bank of India

11. H.GOWTHAM / S&H
5. At what stage of starting a
business can entrepreneurs
apply for a business loan?
a) Idea stage
b) Planning stage
c) Execution stage
d) Scaling stage

12. H.GOWTHAM / S&H
c) Execution stage

13. H.GOWTHAM / S&H
6.What is collateral in the context of a loan?
a) The process of repaying a loan
b) The interest rate on a loan
c) An item of value pledged to secure a loan
d) The duration of a loan

14. H.GOWTHAM / S&H
c) An item of value pledged to
secure a loan

15. H.GOWTHAM / S&H
7.Which type of loan is typically used to
purchase a home?
a) Personal loan
b) Business loan
c) Home loan
d) Travel loan

16. H.GOWTHAM / S&H
c) Home loan

17. H.GOWTHAM / S&H
8.What does APR stand for in the context of
loans?
a) Average Percentage Rate
b) Annual Price Return
c) Annual Percentage Rate
d) Actual Payment Rate

18. H.GOWTHAM / S&H
c) Annual Percentage Rate

19. H.GOWTHAM / S&H
9.What is the importance of creating a
budget in managing personal finances?
a) It restricts all spending
b) It helps track income and expenses
c) It guarantees financial success
d) It eliminates the need for savings

20. H.GOWTHAM / S&H
b) It helps track income and expenses

21. H.GOWTHAM / S&H
10. What is the primary purpose of a savings account?
a)To earn high interest
b)To easily access funds for daily expenses
c)To invest in stocks and bonds
d)To save for retirement

22. H.GOWTHAM / S&H
b)To easily access funds for daily
expenses

23. H.GOWTHAM / S&H
11.Which type of account typically offers
the highest interest rates?
a) Savings account
b) Checking account
c) Money market account
d) Certificate of deposit (CD)

24. d) Certificate of deposit (CD)

25. H.GOWTHAM / S&H
12.What is the benefit of using
automatic transfers to a savings
account?
a) It guarantees high interest rates
b) It reduces the need for a budget
c) It helps build savings consistently
d) It allows for unlimited withdrawals

26. H.GOWTHAM / S&H
c) It helps build savings consistently

27. H.GOWTHAM / S&H
13.Which account is suitable for storing
funds for short-term goals like a
vacation or emergency fund?
a) Savings account
b) Money market account
c) Checking account
d) Retirement account

28. H.GOWTHAM / S&H
a) Savings account

29. H.GOWTHAM / S&H
14. What is the advantage of using a
high-yield savings account?
a) It offers insurance for investments
b) It provides higher interest rates
c) It has no withdrawal limits
d) It is only available to business
accounts

30. H.GOWTHAM / S&H
b) It provides higher interest rates

31. H.GOWTHAM / S&H
15.What is the difference between a debit card and a
credit card?
a) Debit cards require monthly payments, while
credit cards do not
b) Debit cards can be used internationally, but credit
cards cannot
c) Debit cards draw funds directly from your bank
account, while credit cards allow you to borrow
money
d) Debit cards have higher interest rates than credit
cards

32. H.GOWTHAM / S&H
c) Debit cards draw funds directly
from your bank account, while credit
cards allow you to borrow money

33. H.GOWTHAM / S&H
16. How can you avoid overspending?
a) Increase credit card limits
b) Avoid creating a budget
c) Make impulse purchases regularly
d) Stick to a budget and track expenses

34. H.GOWTHAM / S&H
d) Stick to a budget and track expense

35. H.GOWTHAM / S&H
17.What does the term "budget" refer to in
financial management?
a) The total amount of money a person earns
b) A plan for managing income and expenses
c) The process of investing in stocks
d) A type of loan with low interest rates

36. H.GOWTHAM / S&H
b) A plan for managing
income and expenses

37. H.GOWTHAM / S&H
18.What documents are typically required to
apply for an education loan quickly?
a) Just a photo ID
b) Income tax returns from the past 10 years
c) Extensive business plan
d) Proof of admission, course details, and
identity documents

38. H.GOWTHAM / S&H
d) Proof of admission, course
details, and identity
documents

39. H.GOWTHAM / S&H
19.Why do some banks offer quick
approval for education loans?
a) To attract more students to take
loans
b)To encourage students to drop out
of college
c)To provide extra funds for luxurious
spending
d)To ensure that students receive
timely financial support for their
studies

40. H.GOWTHAM / S&H
d)To ensure that students receive timely financial support for their
studies

41. H.GOWTHAM / S&H
20.Which resource should students consult to
understand the terms and conditions of an
education loan?
a) Social media platforms
b) Friends' advice
c) Official bank website and loan agreement
d) Online shopping websites

42. H.GOWTHAM / S&H
c) Official bank website and loan
agreement

43. H.GOWTHAM / S&H
21.Which type of startup business
loan might be more suitable for
purchasing equipment or machinery?
a) Microloan
b) Personal loan
c) Line of credit
d) Equipment financing

44. H.GOWTHAM / S&H
d) Equipment financing

45. 22.What is the key consideration when
applying for a startup business loan?
a)Waiting until the business becomes
profitable before applying
b) Borrowing more money than needed
c) Applying to as many lenders as possible
simultaneously
d) Understanding the terms and repayment
requirements of the loan

46. d) Understanding the terms and repayment
requirements of the loan

47. 23.Why is it important for students to save
money?
a)To spend on unnecessary items
b)To become rich quickly
c)To be financially prepared for
emergencies and future goals
d)To donate to charities

48. c)To be financially prepared for emergencies and future goals

49. 24. How can students save money on
entertainment expenses?
a) Spend large amounts on entertainment
regularly
b) Only participate in free activities
c) Always go on expensive trips
d) Spend money on entertainment without any
limitation

50. b) Only participate in free activities

51. H.GOWTHAM / S&H
25.What is the benefit of using cash instead of
credit cards?
a) Cash makes you spend more
b) Credit cards offer instant discounts
c) Cash helps you stay within your budget
d) Credit cards have no interest rates

52. H.GOWTHAM / S&H
c) Cash helps you stay within your budget

53. H.GOWTHAM / S&H
26.What is a common government
benefit provided to students through
banks to assist with their education
expenses?
a) Free vacation packages
b) Monthly salary bonuses
c) Educational loans and scholarships
d) Luxury car discounts

54. H.GOWTHAM / S&H
c) Educational loans and scholarships

55. H.GOWTHAM / S&H
27.What is the primary purpose of
government scholarships for
students?
a) To encourage students to quit
their studies
b)To provide an additional source of
income for students
c)To help cover educational expenses
and encourage academic
achievement
d)To fund extravagant lifestyle
choices

56. H.GOWTHAM / S&H
c)To help cover educational expenses
and encourage academic
achievement

57. H.GOWTHAM / S&H
28. How do government education
loans usually differ from regular loans
offered by banks?
a) Government loans have much
higher interest rates
b) Government loans require no
repayment
c) Government loans have lower
interest rates and more favorable
terms
d) Government loans are exclusively
for luxury items

58. H.GOWTHAM / S&H
c) Government loans have lower
interest rates and more favorable
terms

59. H.GOWTHAM / S&H
29. How should students usually apply for
government-sponsored benefits and
programs?
a) By only visiting government offices in
person
b) By ignoring government benefits and
relying solely on personal income
c) By checking official government websites
and following the application process
d) By waiting for benefits to be automatically
provided

60. H.GOWTHAM / S&H
c) By checking official government websites and
following the application process

61. H.GOWTHAM / S&H
30. How can NGOs help students save money
on education-related expenses?
a) By providing free luxury cars
b) By offering all-expenses-paid vacations
c) By offering scholarships, grants, or low-
interest loans
d) By giving away free electronics

62. H.GOWTHAM / S&H
c) By offering scholarships, grants, or
low-interest loans

63. H.GOWTHAM / S&H
31.What is the focus of NGOs when it
comes to encouraging students to save
money?
a) Encouraging students to spend money
on unnecessary items
b) Promoting materialistic desires
c) Encouraging students to create a
savings plan and work toward financial
security
d) Discouraging students from pursuing
higher education

64. H.GOWTHAM / S&H
c) Encouraging students to
create a savings plan and work
toward financial security

65. H.GOWTHAM / S&H
32.What is the name of the
flagship education loan
scheme provided by the Indian
government?
a) Vidya Lakshmi Scheme
b) Shiksha SagarYojana
c) Udaan Education Scheme
d) Siksha Sahay

66. H.GOWTHAM / S&H
Answer: a)Vidya Lakshmi Scheme
TheVidya Lakshmi Scheme is a
government initiative in India that
provides a single-window platform for
students to apply for education loans
from multiple banks.This online portal
facilitates students in searching and
applying for various education loan
schemes offered by banks across the
country. It simplifies the loan application
process and aims to make financing
higher education more accessible to
students.

67. H.GOWTHAM / S&H
33. Which government organization is responsible for
implementing theVidya Lakshmi Scheme?
a) Reserve Bank of India (RBI)
b) State Bank of India (SBI)
c) National Securities Depository Limited (NSDL)
d) Indian Banks' Association (IBA)

68. H.GOWTHAM / S&H
Answer: c) National Securities Depository Limited
(NSDL)

69. H.GOWTHAM / S&H
34. Under theTamil Nadu Student Assistance Fund
Scheme, eligible students can avail interest-free loans
up to
a) Rs. 1 lakh
b) Rs. 2 lakh
c) Rs. 5 lakh
d) Rs. 10 lakh

70. H.GOWTHAM / S&H
Answer: b) Rs. 2 lakh

71. H.GOWTHAM / S&H
35. What is the focus of the "Chief Minister's
Comprehensive Health Insurance Scheme" inTamil
Nadu in relation to education loans?
a) Provides health insurance to students availing
education loans
b) Provides education loans to students pursuing
medical courses
c) Provides free education loans to financially
disadvantaged students
d) Provides insurance coverage for education loans
taken by students

72. H.GOWTHAM / S&H
Answer: a) Provides health
insurance to students availing
education loans

73. H.GOWTHAM / S&H
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