NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to Personal Financial Planning
Mrs. Anita Desai has monthly gross income of Rs 1,00,000, EMIs of Rs 25,000 and monthly savings of Rs 20,000. What is her savings ratio (savings to gross income)?
Her savings ratio is 20%. It is computed by dividing monthly savings of Rs 20,000 by gross income of Rs 1,00,000. The 25% figure is her EMI-to-income ratio, which measures debt burden rather than savings.
- A25%
- B20%Correct
- C80%
- D45%
Explanation
Savings ratio = savings / gross income = 20,000 / 1,00,000 = 20%. 25% is the EMI ratio (EMI/income), a wrong numerator. 45% adds EMIs and savings together.
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