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A 16-question quiz on interest, inflation, insurance and tax, scored per topic with worked explanations for every answer.
This is a 16-question diagnostic that measures how well you understand the four ideas every money decision depends on: compound interest, inflation, insurance and income tax. The interest, inflation and real-return items follow the standard 'Big Three' financial literacy questions used in national surveys, and the India-specific items test real rules — the 4% inflation target under section 45ZA of the RBI Act, the Rs 1,50,000 section 80C ceiling, the compulsory third-party cover under the Motor Vehicles Act. Every question comes back with a worked explanation, and the score is broken down by topic so you can see which one is weakest.
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Separate percentages for interest, inflation, insurance and tax so the gap is obvious.
Each answer shows the arithmetic or the section of law behind it.
Questions test actual figures such as the 3-year pre-existing disease cap and the 10% TDS rate on deposit interest.
They test compound interest, inflation and risk diversification: whether Rs 100 at 2% for five years grows to more than Rs 110, whether 1% interest beats 2% inflation, and whether a single stock is safer than a fund. Surveys worldwide use this trio because scoring all three correctly predicts real financial behaviour better than self-reported confidence.
Divide 72 by the annual rate of return. At 8% that gives 9 years, against a precise answer of 9.01, and the shortcut stays accurate for rates roughly between 4% and 15%. The same rule tells you how fast prices double: at 6% inflation, 12 years.
A deduction such as section 80C is subtracted from income before the slab rates apply, so it saves tax at your marginal rate — Rs 1,50,000 saves Rs 45,000 for someone in the 30% bracket. A rebate under section 87A is subtracted from the tax already computed, so it saves rupee for rupee.
Getting at least two-thirds right suggests you can read a product document without being misled. Below that, the gaps are usually in the arithmetic rather than the vocabulary — compounding and real returns — and those are worth fixing before choosing any product. Treat the result as a study guide, and take specific decisions with a qualified adviser.