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Exercise 7.6 · Q1

Q.Find the odd man out from the given alternatives.
a. Insurance
b. Provident Fund
c. Salary
d. Shares

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Three of the four items are investment/saving avenues where money is put away to grow or protect wealth; Salary is simply earned income, making it the odd one out.

Classification (odd-one-out) rule: group the given items by their underlying category; the item that does not share the common category of the rest is the odd one out.

  1. Insurance — a saving-cum-protection instrument in which premiums are invested to build a payout. Category: investment/saving.
  2. Provident Fund — a retirement saving scheme into which a portion of earnings is invested. Category: investment/saving.
  3. Shares — an investment instrument representing ownership in a company. Category: investment/saving.
  4. Salary — this is INCOME received for work done; it is not an instrument into which money is invested or saved. Category: income, not investment.
  5. Three items (Insurance, Provident Fund, Shares) belong to "investment/saving avenues"; Salary alone does not, so it is the odd one out.
✓Final answer

(c) Salary

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