Practice Principles Underlying Sound Investments - 10.7.1 | 10. Financial Management and Planning | CBSE 11 Human Ecology and Family Sciences Part II
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10.7.1 - Principles Underlying Sound Investments

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is meant by 'safety of the principal amount'?

💡 Hint: Think about why it's important to not lose your initial investment.

Question 2

Easy

Define liquidity in investing.

💡 Hint: Consider how quickly you could access cash from an investment.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the primary focus of sound investments?

  • Maximizing returns at all cost
  • Safety of the principal
  • Only high liquidity

💡 Hint: Think about what you would consider most important when investing.

Question 2

True or False: Higher returns always mean a lower level of risk.

  • True
  • False

💡 Hint: Consider risk as a critical factor in investments.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Consider an investor with a principal of $10,000 looking to invest in a combination of high risk and low risk assets. How can they balance their portfolio to ensure safety while aiming for reasonable returns?

💡 Hint: Think about how much risk they are comfortable taking versus ensuring their principal is safe.

Question 2

A family budgeting for their child's future education faces a decision on potential investments. They anticipate the need for $20,000 in 5 years. What strategies should they employ to ensure liquidity and reasonable returns?

💡 Hint: How can they ensure their investments align with their timelines and needs?

Challenge and get performance evaluation