Personal Financial Planning — DU B.Com. (Hons.) Previous Year Question Papers

Q1(a) Define financial goals. What are the key steps involved in setting and achieving these effectively? (12 Marks) Q1®) Explain the benefits, of budgeting in personal financial planning. Illustrate with a brief example; Q1(c) How does maintaining financial discipline contnbute to better spending habits and overall financial well-being? ( 12 Marks) Q1 (d) Define budgeting. Why is it important in managing personal income and expenses? Q2 (a) What is portfolio diversificatiorl? How does it help in managing investment risk across various asset classes? (18 Marks) Q2 a) What are the key differences between in vesting in gold, bonds, and real estate in terms of risk and retun? Q2 (c) What are mutual fund schemes? How do they help small investors? Q3 (a) Explain the structure of personal taxation in India. How do Section 80C and Section 24@) help in reducing tax liability? Provide an example. ( 18 Marks) Q3 a) What is tax avoidance? How is it legally different from tax evasion? Explain with suitable examples. Q4 (a) What is the need for life and health insurance in personal financial planning? Q4 a) What is professional liability insurance? How is it different from property insurance? Q4 (c) What is credit life insurance? Describe its features and importance. Q5 Define any two from the following (9 Marks each) (a) Reverse Mortgage ® Pension Plans in India (c) Currency Derivatives