Skip to content

NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to Personal Financial Planning

Mr. Iyer, aged 35, has monthly expenses of Rs 60,000 and wants an emergency fund equal to 6 months of expenses. He already holds Rs 1,50,000 in a savings account earmarked for this purpose. How much more must he set aside?

He needs Rs 2,10,000 more. The target emergency fund is six months of expenses, which is Rs 3,60,000, and he already holds Rs 1,50,000 for it, so the remaining shortfall is the difference between the two amounts.

  1. ARs 2,10,000Correct
  2. BRs 3,60,000
  3. CRs 1,50,000
  4. DRs 5,10,000

Explanation

Target = 6 x 60,000 = Rs 3,60,000. Existing = Rs 1,50,000. Shortfall = 3,60,000 - 1,50,000 = Rs 2,10,000. Rs 3,60,000 ignores the existing balance; Rs 5,10,000 adds instead of subtracting.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Personal Financial Planning shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Personal Financial PlanningFree diagnostic mock

More Introduction to Personal Financial Planning questions