NIOS Class 12 Home Science Chapter 13 Income Management

NIOS Class 12 Home Science Chapter 13 Income Management Solutions to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 12 Home Science Chapter 13 Income Management and select need one. NIOS Class 12 Home Science Chapter 13 Income Management Question Answers Download PDF. NIOS Study Material of Class 12 Home Science Notes Paper 321.

NIOS Class 12 Home Science Chapter 13 Income Management

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Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 12 Home Science Chapter 13 Income Management, NIOS Senior Secondary Course Home Science Solutions for All Chapter, You can practice these here.

Income Management

Chapter: 13




Q. 1. Analyse and state whether the following are sources of money income (MI) or real income (RI).

(a) Making pickles for your family.

Ans: RI.

(b) Growing vegetables and selling them.

Ans: MI.

(c) Baking cakes on order.

Ans: MI.

(d) Stitching your own clothes.

Ans: RI.

(e) Students coming to you for tuition.

Ans: MI.

(f) Cleaning your car everyday.

 Ans: RI.

(g) Getting interest from the money deposited in bank.

Ans: MI.

(h) Attending to electrical repairs of your house yourself.

Ans: RI.

(i) Being provided with a scooter by your company.

Ans: RI.

Q. 2. Read the following paragraph and then answer questions: (a) and (b)

Mr. Lai and Mr. Anand both get a salary of Rs. 5000 each. Mr. Lal’s office provides him with free lunch as well as petrol expenses for his scooter. Mr. Anand’s office has provided him a free living quarter, near the office.

(a) Which of the two men are enjoying higher income?

Ans: Mr. Anand.

(b) Give the reason for your answer. 

Ans: House rent expenses are more than the expenses for lunch and petrol charges. Thus Mr. Anand is saving on rent and on transport expenses, which is more than Mr. savings.


Q. 1. Mark a tick (✓) on the item on which you should spend first. Give a reason for your choice. 

(a) Going out for a holiday or buying a refrigerator.

Ans: buying a refrigerator.

(b) Buying ice cream or buying nutritious food for your children. 

Ans: buying nutritious food.

(c) Buying a mixer grinder or replacing ordinary curtains with fancy ones.

Ans: buying a mixer grinder.

(d) Buying enough warm clothes for winter or buying a vacuum cleaner. 

Ans: buying warm clothes.

(e) Buying a house or arranging for a holiday abroad.

Ans: buying their own house.


Q. 1. State whether the following are true (T) or false (F). Justify your answer. 

(a) Management of income is important only when you have a large income.

Ans: F – all kinds of income must be managed to get maximum benefit.

(b) When you have a small income it is managed by itself.

Ans: F – A smaller income also needs management for greater satisfaction.

(c) When needs are too many income management is out of question.

Ans: F – to fulfil all the needs, better management of income is required.

(d) When desires are too many income management is useful.

Ans: T – A clear statement of your income helps you to manage it better.

(e) First step in income management is to make an assessment of your income.

Ans:  F – Complete control over both income and expenditure is called managing income.

Q. 2. Mr. Singh’s salary is Rs 10,000. If his total expenditures for the first 9 days of are Rs 2156, Rs 1099, Rs 756, Rs 644, Rs 500, Rs 300, Rs 402, Rs 650.and Rs 806 respectively, calculate the balance of his salary on the 10th day.

Ans: Rupees 2687 is the balance on the 10th day.


Comment on the following statements. Justify your answers (at least two points).

(a) Using a part of your house for commercial storage is a way of earning money.

Ans: No: storing dangerous items can cause fire/health hazards. It may not be allowed legally.

(b) Engaging a servant for doing household chores in order to take up a part time job is a good choice to earn extra money. 

Ans: No: you will have to pay salary to servant. You will compromise on the safety of your house.

(c) Getting a full time job is always better than getting involved in income generating activity at home.

Ans: No: full time job is not always available. You may not be qualified to hold a full time job.

(d) An income generating activity is the only good answer for supplementing family income.

Ans: No: expenditure on entertainment can be curtailed. You can do some work yourself.


Write two reasons for which each of the following families will save: 

(a) Mr. Lal, a middle-income man is working in a private firm. He has two college going daughters. Mrs. Lal is a heart patient.

Ans: daughters’ education and marriage medical expenses, fulfilling post-retirement needs. (any two)

(b) Mr. and Mrs. Swamy are in their early forties. They have a school-going son, who wants to become a doctor. This middle-income family lives in a rented house. They wish to have a high standard of living

Ans: education, buying a house and household durables (any two).

(c) Mr and Mrs Bose are a middle-aged couple having no children. Mr. Bose, a chartered account works in a private firm. They live in a rented house.

 Ans: buying a house and post-retirement needs.


Q. Fill in the cross word puzzle using the hints given below. The number of letters in brackets indicate the number of letters in the word.



2 Facility offered by financial institutions (4)

5 A form of plastic money (10)

10 Another word for buying (8) 

11 24 hr. facility to withdraw money (3)


1  Worldwide network of computer (8) 

3  Charged when credit card bill is partly paid (8)

4 Use of internet for financial service (9) 

6 Money deducted from bank account when used (9)

7 Bought on loan from a bank (5)

8 Can use credit card to buy this for travelling (6)

9 Safe place to keep your money (4)



Q. 1. Re-arrange the letters to denote the correct term for the following: 

(a) Maintaining day to day accounts DOERRC.

Ans: Record. 

(b) You wish to fulfil these after your needs are met REDSSIE.

Ans: Desires.

(c) Money spent on acquiring goods and services TEENTPREXIU.

Ans: Expenditure.

(d) Money available to fulfil the family needs and desires EIOMNC.

Ans: Income.

(e) Money kept aside for future use GNVS AIS.

Ans: Savings.

(f) Growth of savings by keeping in special schemes MIVNETTEN.

Ans: Investment.

(g) Easily accessible institution for saving TOPS EFIFCO.

Ans: Post Office.

(h) Security against death or accident ECASUINRN.

Ans: Insurance.

(i) Saving in NSCs gives you this advantage. XTA NTOMIEEXP.

Ans: Tax Exemption.

(j) Monthly deduction from the salary as compulsory saving NETIROVPD DUFN.

Ans: Provident Fund.

(k) A fixed form of saving YERRO TPP.

Ans: Property 

Q. 2. What is investment? 

Ans: It is an outlay of a sum of money to be used in such a way that a profit or increase in capital may be expected. Finance professionals define investment as money utilised for buying financial assets, for example stocks, bonds, bullion, real properties and precious items. People get involved in this type of investment in the expectation that it will generate cash flows in the future.

Q. 3. What are the ways in which a small saver can invest? 

Ans: A small saver can invests by one or two of the following ways:

(i) Banks.

(ii) Post Office.

(iii) Provident Fund.

(iv) UTI.

(v) Stock Exchange.

(vi) Insurance schemes.

(vii) Company deposits. 

Q. 4. What are the factors you would consider before selecting a scheme of investment?

Ans: Investments are fast becoming an important part of financial planning. Investment depends on financial goals, saving and other aspects of financial health. We need to learn about the correlation between risk and reward. We also need to understand that risk can also lead to large losses. We should also gain an understanding of managing risk, as well the important concept of not risking more than we can afford to lose.

Choosing an investment: When deciding whether to invest, consider carefully the answers to the following:

• What sort of investment is this? 

• Who is involved in providing it for me?

• How much do I pay? 

• What are the charges?

• What returns will I get?

• What are my risks? 

• Can the investment be altered?

• How do I cash in my investment?

• Who do I contact with inquiries about my investment?

• Is there anyone to whom I can complain if I have?

• Problems with the investment. 

• What other information can I obtain about this investment?

Q. 5. If you are the only earning member at home, which scheme would you invest in? Give reasons.

Ans: Anybody with some extra of as little as a few thousand rupees can invest in Mutual Funds. Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Growth schemes aim to provide capital appreciation over the medium to long term. Considering the above, I will choose an appropriate investment scheme satisfying my

• need.

• risk.

• appetite.

• time frame for investment. and 

• return expectation.

• with investments tax benefit.

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