Class 10 IFM Unit One MCQ | Introduction to financial market Class 10 Important MCQ
Here you will get the class 10 IFM unit one MCQ. Introduction to the financial market Class 10 Important MCQ can help you prepare for the skill subject of CBSE class 10.
Class 10 IFM Unit One MCQ
Here are 20 most important MCQs from Class 10 IFM Unit 1 – Investment Basics (based on the 2025–26 CBSE curriculum):
- Investment refers to:
a) Spending on daily needs
b) Putting money in assets to earn returns
c) Donating money to charity
d) Keeping money idle in hand
Answer: b) Putting money in assets to earn returns - Which of the following is an example of investment?
a) Buying groceries
b) Depositing money in a fixed deposit
c) Paying electricity bill
d) Buying clothes
Answer: b) Depositing money in a fixed deposit - Investment is different from saving because:
a) Savings give higher returns
b) Investment involves risk and returns
c) Investment gives no returns
d) Saving involves buying property
Answer: b) Investment involves risk and returns - Which of the following is NOT an investment option?
a) Mutual Fund
b) Fixed Deposit
c) Stock Market
d) Paying rent
Answer: d) Paying rent - Return on Investment (ROI) is calculated to:
a) Measure profits and growth
b) Reduce expenses
c) Measure total debt
d) Calculate tax
Answer: a) Measure profits and growth - The organization that regulates the securities market in India is:
a) RBI
b) SEBI
c) IRDAI
d) SBI
Answer: b) SEBI - The term ‘Equity’ refers to:
a) Ownership in a company
b) Loan to the company
c) Government bond
d) Tax exemption
Answer: a) Ownership in a company - Debt instruments represent:
a) Ownership in business
b) Borrowing by companies or government
c) Donation to NGOs
d) Bonus shares
Answer: b) Borrowing by companies or government - What does ‘Index’ in stock exchange represent?
a) Price of one share
b) Group performance of selected stocks
c) Value of mutual funds
d) Interest rate
Answer: b) Group performance of selected stocks - The two main types of financial markets are:
a) Primary and Secondary
b) Open and Closed
c) Fixed and Variable
d) Cash and Credit
Answer: a) Primary and Secondary - The main function of stock exchange is to:
a) Issue currency
b) Facilitate buying and selling of securities
c) Control inflation
d) Collect taxes
Answer: b) Facilitate buying and selling of securities - Which of these is NOT a feature of investment?
a) Risk
b) Liquidity
c) Profit
d) Immediate consumption
Answer: d) Immediate consumption - ‘Mutual Fund’ means:
a) Fund run by RBI
b) Pool of money invested in securities by professionals
c) Fund given to government employees
d) Loan scheme of banks
Answer: b) Pool of money invested in securities by professionals - The process of converting physical shares into electronic form is called:
a) Monetization
b) Dematerialization
c) Centralization
d) Digitization
Answer: b) Dematerialization - Depository in financial markets is similar to:
a) Library for books
b) Bank for securities
c) Shop for goods
d) Warehouse for products
Answer: b) Bank for securities - Who among the following are market participants?
a) Investors
b) Brokers
c) Regulators
d) All of the above
Answer: d) All of the above - SEBI stands for:
a) Securities and Exchange Board of India
b) Security Exchange Bank of India
c) Stock and Equity Board of India
d) State Economic Board of India
Answer: a) Securities and Exchange Board of India - A stock exchange is a place where:
a) Goods are traded
b) Financial securities are bought and sold
c) Loans are given
d) Currency is printed
Answer: b) Financial securities are bought and sold - Which of these represents a tangible investment?
a) Mutual Fund
b) Gold
c) Equity Shares
d) Bonds
Answer: b) Gold - The return from a fixed deposit is in the form of:
a) Dividend
b) Interest
c) Capital gain
d) Commission
Answer: b) Interest
