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Choose the correct pair: 1. Kisan Vikas Patra - Bank 2. Compulsory Saving - Provident Fund 3. Mutual Funds - Post Office 4. Unit Trust of India - Compulsory Saving

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Question

Choose the correct pair:

Options

  • Kisan Vikas Patra - Bank

  • Compulsory Saving - Provident Fund

  • Mutual Funds - Post Office

  • Unit Trust of India - Compulsory Saving

MCQ
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Solution

Compulsory Saving - Provident Fund

Explanation:

A provident fund (such as EPF or GPF) operates on a mandatory, regular deduction from an employee’s salary. Because these contributions are mandated by employment rules to secure an individual’s financial future, they are classified as compulsory savings.

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Chapter 1: Budgeting and Savings - EXERCISES [Page 20]

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Dr. Alka Agarwal, Urvi Raval Home Science for Class 10th ICSE
Chapter 1 Budgeting and Savings
EXERCISES | Q 7. A. | Page 20
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