Q.1-10. In the following passage there are blanks each of which has been numbered. These numbers are printed below the passage and against each five words that have been suggested, one of the options fit the blanks appropriately. Find out the appropriate word in each case.
Schools teach children many things but seldom the basics of (1) planning. How many times have we rued not knowing how credit cards work. How much interest we will earn, how much tax to pay and what not? Unfortunately many of us have had to learn about money and its management the hard way. However, we cannot easily save our children the heartburn by teaching them the (2) of money management. It is never too early. You can start talking about this the moment your child starts to understand that it takes money to (3) things. Of course, the method of teaching would depend on your child’s age. It is not as if children don’t understand about money. The moment you hand over cash and let the child (4), he knows how it works. And don’t forget that even being allowed to hand over money to a shopkeeper gives the child a thrill and makes him (5).
The mantra to building wealth is first save and then spend. It is very important to make your child understand this as this concept can go a long way in financial learning and will hopefully stay with her during adult life. Many financial problems in later life are due to (6) towards financial planning. Many don’t talk about money for ages and end up being handicapped in finances.
To understand the value of what one gets, the child needs to know its worth in (7) terms too. The easiest way to induce the habit of saving is to ask the child to pitch in when he wants to buy something. Instead of buying everything for your child, give him the pocket money and allow to spend on things he wants to buy. The amount can be small depending on how much you are comfortable with. This way you can also keep a check on where the money is being used.
Banking products are the easiest to explain as we transact with our bank almost every month. You can start by opening a bank account. You can introduce bank fixed deposits to an older child as he would have learnt the concept of compounding interest at school. The best way is to include his academic (8) into day-to-day money management activity. Then you can slowly introduce her to other instruments such as stocks and the like.
Inflation eats into savings. You speak to any financial planner and they will tell you that people are uneducated about real returns. While (9), many don’t bother to think about the importance of inflation-adjusted returns. So, it is important to tell him how (10) works and what it can do to his savings.
Q.1. (1) financial (2) social (3) personal (4) organizational (5) academic
Q.2. (1) infrastructure (2) revenues (3) essentially (4) basics (5) propaganda
Q.3. (1) buy (2) qualify (3) affords (4) retain (5) sell
Q.4. (1) prevent (2) execute (3) introduce (4) leave (5) transact
Q.5. (1) answered (2) guilty (3) responsible (4) immune (5) perplexed
Q.6. (1) simplicity (2) ignorance (3) limelight (4) volatile (5) literacy
Q.7. (1) global (2) terminal (3) biological (4) monetary (5) legal
Q.8. (1) active (2) aware (3) attain (4) inanity (5) knowledge
Q.9. (1) printing (2) selling (3) investing (4) adjusting (5) claiming
Q.10. (1) expansion (2) finance (3) bargain (4) inflation (5) charity
ANSWERS
Q.1.(1) Q.2.(4) Q.3.(1) Q.4.(5) Q.5.(3) Q.6.(2) Q.7.(4) Q.8.(5) Q.9.(3) Q.10.(4)
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