{"id":12761,"date":"2023-04-05T09:48:56","date_gmt":"2023-04-05T04:18:56","guid":{"rendered":"https:\/\/onlinefreenotes.com\/?p=12761"},"modified":"2023-04-05T09:48:56","modified_gmt":"2023-04-05T04:18:56","slug":"savings-and-investments","status":"publish","type":"post","link":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/savings-and-investments\/","title":{"rendered":"Savings and Investments: NBSE Class 10 Financial Literacy notes"},"content":{"rendered":"\n<p>Here, you will find summaries, questions, answers, textbook solutions, pdf, extras etc. of (Nagaland Board)\u00a0<a href=\"http:\/\/nbsenl.edu.in\/\" target=\"_blank\" rel=\"noopener\">NBSE\u00a0<\/a>Class 10 Financial Literacy Chapter 1: Savings and Investments. These solutions, however, should be only treated as references and can be modified\/changed.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-content\/uploads\/2023\/04\/man-and-woman-saving-money-illustrating-the-chapter-Savings-and-Investments-1024x536.png\" alt=\"man and woman saving money, illustrating the chapter Savings and Investments\" class=\"wp-image-12763\" srcset=\"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-content\/uploads\/2023\/04\/man-and-woman-saving-money-illustrating-the-chapter-Savings-and-Investments-1024x536.png 1024w, https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-content\/uploads\/2023\/04\/man-and-woman-saving-money-illustrating-the-chapter-Savings-and-Investments-300x157.png 300w, https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-content\/uploads\/2023\/04\/man-and-woman-saving-money-illustrating-the-chapter-Savings-and-Investments-768x402.png 768w, https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-content\/uploads\/2023\/04\/man-and-woman-saving-money-illustrating-the-chapter-Savings-and-Investments.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div class=\"wp-block-ultimate-post-table-of-content ultp-block-a5b310\"><div class=\"ultp-block-wrapper\"><div class=\"ultp-block-toc\"><div class=\"ultp-toc-header\"><div class=\"ultp-toc-heading\">Table of Contents<\/div><div class=\"ultp-collapsible-toggle  ultp-collapsible-right\"><a class=\"ultp-collapsible-text ultp-collapsible-open\" href=\"javascript:;\">[Open]<\/a><a class=\"ultp-collapsible-text ultp-collapsible-hide\" href=\"javascript:;\">[Close]<\/a><\/div><\/div><div class=\"ultp-block-toc-style1 ultp-block-toc-body\" style=\"display:block;\"><ul class=\"ultp-toc-lists\"><li><a href=\"\/2025\/onlinefreenotes\/#Summary\">Summary<\/a><\/li><li><a href=\"\/2025\/onlinefreenotes\/#Textual_MCQs\">Textual MCQs<\/a><\/li><li><a href=\"\/2025\/onlinefreenotes\/#Additional_MCQs\">Additional\/extra MCQs<\/a><\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"Summary\"><strong>Summary<\/strong><\/h4>\n\n\n\n<p>Saving and investment are essential components of personal finance. Saving refers to setting aside a portion of one&#8217;s disposable income for future use, while investment involves employing funds in financial or real assets with the expectation of deriving future benefits. Although often used interchangeably, these concepts have distinct differences in terms of purpose, time period, returns, and risk.<\/p>\n\n\n\n<p>Saving is the excess of income over expenditure, intended to meet future expenses or investments. It is typically stored safely, such as in a bank account or a home locker, and earns a low or fixed return. Saving is generally for shorter periods and has low or negligible risk.<\/p>\n\n\n\n<p>Investment, on the other hand, involves employing funds in assets like stocks, bonds, or real estate with the aim of making a profit. Investments are made for comparatively longer periods and offer varying returns based on market conditions and demand. Unlike savings, investments carry a higher risk due to the possibility of fluctuating asset values.<\/p>\n\n\n\n<p>One form of short-term investment is speculation, where funds are invested for short periods with the aim of profiting from fluctuations in asset prices. Speculation carries high risk and is primarily driven by market trends.<\/p>\n\n\n\n<p>Investing is crucial for several reasons, including generating returns in the form of dividends, interest, and capital appreciation, earning above inflation, safeguarding funds, obtaining tax advantages, and creating collateral security for future needs. The return on investment can be calculated using the holding period return formula.<\/p>\n\n\n\n<p>The time value of money is an essential concept in finance, addressing how the value of money changes over time. Money received today is worth more than the same amount received in the future, as the purchasing power of money decreases over time due to inflation and other factors.<\/p>\n\n\n\n<p>Interest is a charge for borrowing money, typically expressed as a percentage of the borrowed amount for a specific period. Simple interest is calculated only on the original amount borrowed, while compound interest is calculated on the original amount plus all unpaid accumulated interest. Compound interest highlights the power of compounding in wealth accumulation.<\/p>\n\n\n\n<p>A Systematic Investment Plan (SIP) is a strategy that involves investing a fixed amount in financial assets at regular intervals, allowing for wealth accumulation and capital appreciation. SIPs offer several advantages, including the flexibility to decide the investment amount, the ability to invest small amounts, and tax benefits for specific schemes.<\/p>\n\n\n\n<p>In summary, saving and investment are vital aspects of personal finance management. While saving involves setting aside money for future use and carries low risk, investment entails employing funds in assets to generate future benefits and carries a higher degree of risk. Understanding the differences between these concepts, along with the time value of money, interest, and systematic investment plans, can help individuals make informed financial decisions for long-term wealth accumulation and financial security.<\/p>\n\n\n\n\n\n<h4 class=\"wp-block-heading\" id=\"Textual_MCQs\"><strong>Textual MCQs<\/strong><\/h4>\n\n\n\n<p><strong>1. _____ is the activity of setting aside a part of cash\/kind for further use.<\/strong><\/p>\n\n\n\n<p>a) Investment<br>b) Savings<br>c) Variable expenses<br>d) Fixed expenses<\/p>\n\n\n\n<p><strong>Answer:<\/strong> b) Savings<\/p>\n\n\n\n<p><strong>2. Speculator makes use of the _____ in the movement of price of an asset<\/strong><\/p>\n\n\n\n<p>a) Stability<br>b) Fluctuation<br>c) Rise<br>d) Fall<\/p>\n\n\n\n<p><strong>Answer:<\/strong> b) Fluctuation<\/p>\n\n\n\n<p><strong>3. Time value of money is a concept that addresses the way the value of _____ changes over a period of time.<\/strong><\/p>\n\n\n\n<p>a) Life style<br>b) Currency<br>c) Money<br>d) budget<\/p>\n\n\n\n<p><strong>Answer:<\/strong> c) Money<\/p>\n\n\n\n<p><strong>4. _____ term investments are known as speculation.<\/strong><\/p>\n\n\n\n<p>a) Long<br>b) Short<br>c) Medium<br>d) Very long term<\/p>\n\n\n\n<p><strong>Answer:<\/strong> b) Short<\/p>\n\n\n\n<p><strong>5. _____ is the investment of a fixed amount in any of the financial assets at regular interval.<\/strong><\/p>\n\n\n\n<p>a) Speculation<br>c) Savings<br>b) Time Value of Money<br>d) Systematic Investment Plan<\/p>\n\n\n\n<p><strong>Answer:<\/strong> d) Systematic Investment Plan<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"Additional_MCQs\"><strong>Additional\/extra MCQs<\/strong><\/h4>\n\n\n\n<p><strong>1. What is the first step to investments?<\/strong><\/p>\n\n\n\n<p>A. Saving B. Speculation C. Borrowing D. Risk-taking<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Saving<\/p>\n\n\n\n<p><strong>2. What is the primary purpose of savings?<\/strong><\/p>\n\n\n\n<p>A. To make a profit B. To meet future expenses C. To speculate in the market D. To create collateral security<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. To meet future expenses<\/p>\n\n\n\n<p><strong>3. Which of the following is considered a real asset?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Debentures B. Mutual funds C. Gold D. Share warrants<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Gold<\/p>\n\n\n\n\n\n<p><strong>Q. What is the main objective of speculation?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Long-term investment B. Meeting future expenses C. Short-term gains D. Storing money safely<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Short-term gains<\/p>\n\n\n\n<p><strong>Q. What is the concept that addresses the change in the value of money over time?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Inflation B. Compound interest C. Time value of money D. Simple interest<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Time value of money<\/p>\n\n\n\n<p><strong>Q. What type of interest is calculated on the original amount borrowed plus all unpaid accumulated interest?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Simple interest B. Compound interest C. Fixed interest D. Floating interest<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Compound interest<\/p>\n\n\n\n<p><strong>Q. Which investment strategy involves investing a fixed amount in financial assets at regular intervals?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. One-time investment B. Recurring deposit C. Systematic Investment Plan (SIP) D. Lump-sum investment<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Systematic Investment Plan (SIP)<\/p>\n\n\n\n<p><strong>Q. What type of shares provide a fixed dividend but have no voting rights?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Equity shares B. Preference shares C. Share warrants D. Debentures<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Preference shares<\/p>\n\n\n\n<p><strong>Q. Which investment offers a fixed return on savings?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Savings account B. Stock market C. Real estate D. Mutual funds<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Savings account<\/p>\n\n\n\n<p><strong>Q. What type of assets are directly linked to the stock market?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Exchange Traded Funds (ETFs) B. Fixed deposits C. Real estate D. Post office savings certificates<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Exchange Traded Funds (ETFs)<\/p>\n\n\n\n<p><strong>Q. Which type of investment provides tax benefits such as deductions and exemptions?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Real estate B. Gold C. Provident Fund (PF) D. Artifacts<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Provident Fund (PF)<\/p>\n\n\n\n<p><strong>Q. What is the term for the employment of funds in financial or real assets with an element of risk?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Saving B. Speculation C. Investment D. Debt<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Investment<\/p>\n\n\n\n<p><strong>Q. Which real asset can be collected and may appreciate in value over time?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Coins B. Insurance policies C. Commercial papers D. Debentures<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Coins<\/p>\n\n\n\n<p><strong>Q. What is the term for the short-term investment of funds to take advantage of fluctuations in asset prices?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Saving B. Speculation C. Investment D. Risk-taking<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Speculation<\/p>\n\n\n\n<p><strong>Q. Which type of investment plan allows the investor to decide the amount to be invested?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Lump-sum investment B. Fixed deposit C. Systematic Investment Plan (SIP) D. One-time investment<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Systematic Investment Plan (SIP)<\/p>\n\n\n\n<p><strong>Q. What type of investment carries the least risk?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Stock market B. Real estate C. Savings account D. Mutual funds<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Savings account<\/p>\n\n\n\n<p><strong>Q. Which financial asset offers a claim to a company&#8217;s profits and carries voting rights?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Equity shares B. Preference shares C. Debentures D. Commercial papers<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Equity shares<\/p>\n\n\n\n<p><strong>Q. What type of investment offers no fixed return and is affected by market conditions?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Savings account B. Fixed deposits C. Stock market D. Provident Fund (PF)<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Stock market<\/p>\n\n\n\n<p><strong>Q. What is the primary purpose of investment?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. To store money safely B. To make a profit C. To meet future expenses D. To create collateral security<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. To make a profit<\/p>\n\n\n\n<p><strong>Q. Which type of investment is made for a longer period and carries more risk compared to savings?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Fixed deposits B. Mutual funds C. Savings account D. Stock market<\/p>\n\n\n\n<p><strong>Answer:<\/strong> D. Stock market<\/p>\n\n\n\n<p><strong>Q. Which investment is made in financial assets and offers a fixed return?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Debentures B. Real estate C. Gold D. Diamonds<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Debentures<\/p>\n\n\n\n<p><strong>Q. Which type of investment can be represented by Global Depository Receipts (GDRs)?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Real estate B. Equity shares C. Gold D. Art pieces<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Equity shares<\/p>\n\n\n\n<p><strong>Q. What is a short-term investment made in the stock market to take advantage of price fluctuations called?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Saving B. Speculation C. Investment D. Risk-taking<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Speculation<\/p>\n\n\n\n<p><strong>Q. Which type of asset offers a fixed return and is considered a low-risk investment?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Stock market B. Mutual funds C. Fixed deposits D. Real estate<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Fixed deposits<\/p>\n\n\n\n<p><strong>Q. What is the primary objective of saving?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. To create collateral security B. To earn above inflation C. To meet future expenditure or investment D. To get tax advantage<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. To meet future expenditure or investment<\/p>\n\n\n\n<p><strong>Q. What type of risk is associated with savings?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. High risk B. Moderate risk C. Low or no risk D. Variable risk<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Low or no risk<\/p>\n\n\n\n<p><strong>Q. Which type of investment is characterized by a longer time period and a variable return?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Savings account B. Fixed deposits C. Stock market D. Debt securities<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Stock market<\/p>\n\n\n\n<p><strong>Q. In which financial asset can an investor invest small amounts at regular intervals to accumulate wealth?<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. One-time investment B. Systematic Investment Plan (SIP) C. Fixed deposit D. Lump-sum investment<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Systematic Investment Plan (SIP)<\/p>\n\n\n\n<p><strong>Q. __________ is the portion of disposable income not spent on consumption.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Saving B. Investment C. Speculation D. Debt<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Saving<\/p>\n\n\n\n<p><strong>Q. The return on savings is typically _________.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Fixed B. Variable C. High D. Low<\/p>\n\n\n\n<p><strong>Answer:<\/strong> A. Fixed<\/p>\n\n\n\n<p><strong>Q. An investor is compensated for sacrificing current consumption, effects of inflation, and ________.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Taxes B. Time C. Risk D. Debt<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Risk<\/p>\n\n\n\n<p><strong>Q. Investments made in financial assets like equity shares, debentures, and mutual funds are known as _________ assets.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Real B. Fixed C. Financial D. Tangible<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Financial<\/p>\n\n\n\n<p><strong>Q. _________ is a charge for borrowing money, usually stated as a percentage of the amount borrowed for a specific period of time.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Inflation B. Interest C. Dividend D. Capital gain<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Interest<\/p>\n\n\n\n<p><strong>Q. The _________ is a concept that addresses the way the value of money changes over a period of time.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Inflation rate B. Interest rate C. Time value of money D. Compound interest<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Time value of money<\/p>\n\n\n\n<p><strong>Q. Investments made for a short period to get some returns, making use of fluctuations in the movement of the price of an asset, are known as __________.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Saving B. Speculation C. Investment D. Risk-taking<\/p>\n\n\n\n<p><strong>Answer:<\/strong> B. Speculation<\/p>\n\n\n\n\n\n<p><strong>36. A type of investment plan that allows the investor to buy units on a given date every month or every quarter is called a _________.<\/strong>&nbsp;<\/p>\n\n\n\n<p>A. Fixed deposit B. Lump-sum investment C. Systematic Investment Plan (SIP) D. Recurring deposit<\/p>\n\n\n\n<p><strong>Answer:<\/strong> C. Systematic Investment Plan (SIP)<\/p>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>Here, you will find summaries, questions, answers, textbook solutions, pdf, extras etc. of (Nagaland Board)\u00a0NBSE\u00a0Class 10 Financial Literacy Chapter 1: Savings and Investments. These solutions, however, should be only treated as references and can be modified\/changed.\u00a0 Summary Saving and investment are essential components of personal finance. Saving refers to setting aside a portion of one&#8217;s&hellip; <a class=\"more-link\" href=\"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/savings-and-investments\/\">Continue reading <span class=\"screen-reader-text\">Savings and Investments: NBSE Class 10 Financial Literacy notes<\/span><\/a><\/p>\n","protected":false},"author":1044,"featured_media":12763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,34],"tags":[29,30,560,41,12,13,33,35,36,561,37,53],"class_list":["post-12761","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nagaland","category-notes","tag-class-10","tag-extras","tag-financial-literacy","tag-hslc","tag-nagaland-board","tag-nbse","tag-notes","tag-pdf","tag-questions","tag-savings-and-investments","tag-solutions","tag-textual-answers","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/posts\/12761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/users\/1044"}],"replies":[{"embeddable":true,"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/comments?post=12761"}],"version-history":[{"count":0,"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/posts\/12761\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/media\/12763"}],"wp:attachment":[{"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/media?parent=12761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/categories?post=12761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mockupbw.site\/2025\/onlinefreenotes\/wp-json\/wp\/v2\/tags?post=12761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}