Question 1

Q1: Financial Management and Planning Plan a budget for any festival celebrated in your school. One example under each heading is given. No. of students:...

Accepted Answer

Budget Plan for 'Diwali Celebration' No. of students: 30 No. of teachers: 5 S.No. Item Details Cost (Rs.) 1. Venue arrangement Decoration a) Flowers 100.00 b) Diyas (Earthen lamps) 150.00 c) Rangoli Colours 100.00 d) Fairy Lights 250.00 e) Balloons 50.00 Sub total 650.00 2. Food a) Sweets (Prasad) -...

Question 2

Q1: Indicate if the following statements are 'True' or 'False'. (i) Budget is the first step in money management. (True/False) _____ (ii) Money serves as...

Accepted Answer

(i) True. The text states, "A budget is a plan for future expenditure. It represents the first step in the managerial process as applied to money." (ii) True. According to the chapter, one of the two most important functions of money is "Serving as a medium of exchange". (iii) True. The list of inco...

Question 3

Q2: What do you understand by 'management of finances'?

Accepted Answer

Management of finances, also known as financial management, refers to the process of planning, controlling, and evaluating the use of all types of income available to a family. Finances include all monetary receipts such as salary, wages, rent, interest, and bonus. The primary purpose of managing fi...

Question 4

Q3: Discuss the different types of income.

Accepted Answer

According to the chapter, there are three types of family income: 1.  Money Income: This is the purchasing power a family receives in the form of rupees and paisa over a specific period. It includes sources like wages, salary, bonus, rent, interest, and royalties. This income is used to buy goods an...

Question 5

Q4: Discuss the steps in making a budget.

Accepted Answer

Making a family budget involves five main steps: 1.  List the commodities and services needed: The first step is to list all the items and services the family requires for the budget period. These items should be grouped into categories like food, housing, clothing, education, transportation, and sa...

Question 6

Q5: What are the controls that can be exercised in money management?

Accepted Answer

In money management, control is the step that follows planning. It involves checking the progress of the financial plan and making adjustments where necessary. The main controls are: 1.  Checking: This helps in understanding how the plan is progressing. There are two kinds of checks:        Mental a...

Question 7

Q6: Discuss the principles underlying sound investments.

Accepted Answer

Sound investments are guided by several key principles to ensure that savings are used wisely to provide good returns and security. The main principles are:    Safety of the principal amount: The primary goal is to ensure the original amount invested is safe and not lost. This can be achieved by div...

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