Sample Paper
Grade 5
1. What did people use before money was invented?
A. Metal coins.
B. Paper notes.
C. Barter system.
D. Debit cards.
2. Which of these is NOT a form of currency?
A. Rupee.
B. Dollar.
C. Euro.
D. Cowrie Shell.
3. What does "store of value" mean in terms of money?
A. Money helps you buy expensive things.
B. Money keeps its value for future use.
C. Money is stored in shops.
D. Money is counted only in coins.
4. If a pen costs ₹20 and a notebook costs ₹50, what function of money does this show?
A. Store of value.
B. Medium of exchange.
C. Currency exchange.
D. Unit of account.
5. Why did people stop using the barter system and move to coins and money?
A. Coins made trading faster and simpler.
B. Coins were shiny and pretty.
C. Barter was easy for everyone.
D. People wanted to exchange goods directly.
6. Which of the following is an example of digital money?
A. ₹10 note.
B. Gold coin.
C. Debit card payment.
D. Cowrie shell.
7. You are going to Japan. You have Indian Rupees but need Japanese Yen. What should you do?
A. Spend your Rupees directly in Japan.
B. Exchange Rupees for Yen at a currency exchange office.
C. Use only coins for shopping.
D. Ask the shop to accept Indian money.
8. Which type of bank account allows unlimited transactions but usually offers no interest?
A. Recurring Deposit.
B. Fixed Deposit.
C. Savings Account.
D. Current Account.
9. In ancient India, which place was used to keep money safely?
A. Markets.
B. Palaces.
C. Temples.
D. Schools.
10.Which of these accounts is best suited for saving money and earning interest?
A. Current Account.
B. Savings Account.
C. Loan Account.
D. Piggy Bank.
11.Why are temples considered the earliest form of banks in ancient India?
A. They sold goods to people.
B. They hosted community fairs.
C. They stored people's money and gave out loans.
D. They taught people how to save.
12.What is the difference between a Savings Account and a Current Account?
A. Savings accounts are used by banks only.
B. Current accounts give more interest.
C. Savings accounts are for businesses only.
D. Current accounts allow unlimited transactions, savings accounts don’t.
13.What is ‘interest’ in banking terms?
A. A bank’s holiday schedule.
B. A fee for opening a new account.
C. Extra money earned on savings or paid on loans
D. A fee collected by the government.
14.Amit deposits ₹10,000 at 5% interest for 3 years. What is the Simple Interest he earns?
A. ₹1,000
B. ₹1,200
C. ₹1,500
D. ₹500
15.What is income?
A. Money you lose.
B. Money you spend.
C. Money your friends have.
D. Money you earn.
16.Which of the following is an example of an expense?
A. Getting birthday money.
B. Putting money in your piggy bank.
C. Buying a toy for ₹200.
D. Getting pocket money.
17.Why is it important to save money?
A. So you can spend more today.
B. To help you reach future goals or emergencies.
C. Because banks require it.
D. To help your friends.
18.What is the main difference between a "need" and a "want"?
A. Needs are optional, wants are essential.
B. Needs are things people buy for fun, wants are only for emergencies.
C. Needs change every day, wants always stay the same.
D. Needs are things required to live, wants are things that are nice to have.
19.If you receive ₹500 and decide to save ₹200, spend ₹150 on a toy, and use ₹150 for snacks, what
is your total savings?
A. ₹150
B. ₹200
C. ₹350
D. ₹500
20.Why is it important to create a budget?
A. To borrow more money from others.
B. To make sure all money is spent quickly.
C. To spend more on wants than needs.
D. To balance income with expenses and savings.
21.If you save ₹50 every week from your ₹100 pocket money, how much will you have saved after 6
weeks?
A. ₹200.
B. ₹250.
C. ₹300.
D. ₹600.
22.Which of these situations best shows the idea of “thinking before spending”?
A. Spending your birthday money all on chocolate.
B. Asking your parents for more money every week.
C. Deciding to wait and save for a new bicycle instead of buying small toys.
D. Buying things on sale even if you don’t need them.
23.What is an investment?
A. Spending all your money on snacks.
B. Borrowing money from others.
C. Keeping all your money at home.
D. Using money to buy something that can grow in value.
24.Why is starting to invest early a good idea?
A. Because banks give extra interest only to early investors.
B. Because you can earn interest on interest over a longer period.
C. Because early investments don’t require saving.
D. Because older people can’t invest.
25.What is an example of an investment?
A. Spending money on a toy.
B. Buying chocolates.
C. Putting money in a savings account to earn interest.
D. Giving money to a friend.
26.What is the meaning of compounding?
A. Earning interest on both your original amount and the interest already earned.
B. Earning money from a part-time job.
C. Spending less money each month.
D. Borrowing money from a bank.
27.Which option best explains how compounding works?
A. You earn interest only on the money you first deposit.
B. Interest is given once and not repeated.
C. You earn interest on your total balance, which includes past interest.
D. You earn less interest each year.
28.Why is a savings account a good place to keep money for the future?
A. You cannot withdraw money.
B. It gives high returns quickly.
C. It guarantees that you will make a profit immediately.
D. It is a safe place that also helps your money grow with interest.
29.If you want to buy a bicycle worth ₹5,000 and you can save ₹500 each month, how long will it
take to save enough money, assuming you are not earning any interest?
A. 5 months.
B. 10 months.
C. 15 months.
D. 12 months.
30.If you invest ₹100 at 10% interest per year, what will you have at the end of two years with
compounding?
A. ₹110
B. ₹130
C. ₹121
D. ₹120
Correct Answers:
1. (C) 11.(C) 21.(C)
2. (D) 12.(D) 22.(C)
3. (B) 13.(C) 23.(D)
4. (D) 14.(C) 24.(B)
5. (A) 15.(D) 25.(C)
6. (C) 16.(C) 26.(A)
7. (B) 17.(B) 27.(C)
8. (D) 18.(D) 28.(D)
9. (C) 19.(B) 29.(B)
10.(B) 20.(D) 30.(C)