Investment and Financial Planning Skills Test
It
is possible to invest in money market securities of maturity up to ___________
days through liquid funds /short term deposits.
a. 60
b. 365
c. 180
d. 91
Which
of the following types of Hybrid Funds (involving an investment in a mix
proportion of equity & debt such as a proportion of 60:40) provides a
consistent and regular return?
a. Monthly
Income Scheme
b. Balanced
Funds
c. Fixed
Maturity Plans
d. All of
the above
Which
of the following differences between the life insurance and general insurance
is not correct?
a. Life
insurance is a long-term contract whereas general insurance contract is mostly
one-year renewable contract.
b. Premium
charged under a life insurance is calculated with the help of mortality table
but in case of general insurance, premium is calculated based on the fixed
tariff plans.
c. To
determine the financial value of life under life insurance is difficult whereas
financial value of asset to be insured under general insurance can be
determined.
d. Life
insurance contract is a contract of indemnity whereas general insurance
contract is not.
In
which of the following options can mutual funds companies invest?
a. Stocks
b. Bonds
c. Money
market instruments
d. All
of the above
A/An
_____________ takes up the process of valuation in a life insurance company.
a. chartered
accountant
b. analyst
c. surveyor
d. actuary
Which
two of the following mutual funds investment schemes do not involve a lock-in
period?
a. Liquid
Funds
b. Income
Funds
c. Long
Term Floating Rate Funds
d. Short
or Medium Term Floating Rate Funds
e. GILT
Funds
Under
which of the following types of Mutual Funds schemes are gold investments made?
a. Index
funds
b. Long-term
income funds
c. Fixed
maturity plans
d. Exchange
traded funds
After
how many years will a person be presumed to be dead if the person leaves
his/her usual place of residence and is neither heard of nor known to be
living?
a. 5
b. 6
c. 7
d. 10
Which
two of the following types of areas are not covered by general insurance?
a. Household
b. Health
c. Retirement
d. Travel
e. Whole
life coverage
f. None
of the above
In
which of the following types of whole life insurance, does the face amount
increase with an increase in inflation?
a. Single
premium whole life insurance
b. Graded
premium whole life insurance
c. Indexed
whole life insurance
d. Special
purpose life insurance
Which
of the following is not considered as a soft commodity?
a. Wheat
b. Fruit
c. Oil
d. Sugar
e. Cocoa
A
corporation has:
Total long-term assets = $1000
Total long-term liabilities = $500
Total current assets = $1000
Total current liabilities = $1300
Find
shareholders' equity.
a. $200
b. $800
c. $1000
d. $1200
Which
two of the following types of mutual fund schemes invest only into shares of
companies?
a. Short-Term
Income Funds
b. Medium-Term
Income Funds
c. Small
Cap Funds
d. Large
Cap Funds
Mark
had taken an accident insurance policy, which covers losses due to road
accidents. His car met with an accident. Due to the accident, he suffered from
a shock. Due to the imbalance caused by the shock, he fell into a river and
lost his life due to drowning.
Will
his death be covered by the accident policy that he had taken?
a. Yes
b. No
Which
two of the following are covered by the Freight Insurance Policy?
a. Damage
or loss of goods.
b. Damage
to cargo.
c. Profits
made by ship owner from the ships used for carrying cargo.
d. Legal
liabilities of the owner.
e. Losses
in case cargo is not deliverable.
Suppose,
an FMP (Fixed Maturity Plan) involving investment through AAA securities is
offered for 2 years. The AAA securities are paying an 8% interest on 2-year
securities and the expense ratio of the scheme is 0.8%. Which of the following
is the indicative return that can be expected by the investor?
a. 8%
b. 7%
c. 7.2%
d. 8.8%
Which
of the following options is false about equity shareholders?
a. Surplus
is distributed among equity shareholders after all other dues are settled.
b. Equity
shareholders do not have voting rights in the company.
c. An
equity shareholder has rights on the profit in case of liquidation of company.
d. An
equity shareholder has rights on the company's assets in case of liquidation of
company.
Whole
life insurance plan pays policy benefits after the insured ______________.
a. person's
death
b. person's
retirement
c. person
attains a certain age, for example 80-85 years
d. person
attains the age of 100 years
Calculate
the Debt Equity Ratio if:
Accumulated Profit= $2000
Equity Share Capital= $5000
Preference Share Capital= $5000
Debentures= $15000
a. 5:4
b. 3:2
c. 4:5
d. 3:1
Which
of the following types of endowment policies is designed to cover a child's
marriage, education and independence?
a. Juvenile
endowment policy
b. A
semi endowment policy
c. Single
premium endowment policy
d. Modified
endowment policy
Sam
owns a manufacturing business and stores the manufactured goods in three
different warehouses.
Which
of the following types of policy is the best for him so that the goods at all
the warehouses are insured and protected?
a. Specific
policy
b. Valued
policy
c. Floating
policy
d. Comprehensive
policy
e. None
of the above
____________
of an existing organization is bought by a private equity firm in a typical
leveraged buyout transaction.
a. Minor
control
b. Major
control
c. Complete
control
In
finance, private equity consists of an operating company's ______________.
a. equity
securities, which are not publicly traded on a stock exchange
b. equity
securities and accumulated profits, which are publicly traded on a stock
exchange
c. equity
share capital, which are not publicly traded on a stock exchange
d. equity
securities and shareholder's fund, which are not publicly traded on a stock
exchange
What
does the term "open-ended" mean in mutual fund investment schemes?
a. Involving
a fixed term.
b. Involving
large number of equity allocation.
c. Involving
a high NAV (Net Asset Value).
d. Always
open for investments and redemption.
e. Both
b and c
Through
which of the following are the new mutual fund schemes offered to the investors
for the first time?
a. Initial
Public Offer
b. New
Fund Offering
c. Mutual
Fund Service System
d. Systematic
Transfer Plan
High
profits of an organization mean ____________ for an equity shareholder.
a. high
dividends
b. low
dividends
c. no
dividends
Which
of the following can be a valid confirmation that can make you eligible for an
investment in any kind of mutual funds?
a. KYC
(Know Your Client)
b. Portfolio
management
c. NAV
(Net Asset Value)
d. Savings
Bank Account
Damage
to the goods carried by cargos are covered under __________ insurance.
a. accident
b. marine
c. travel
d. fire
Physical
damage to a ship is covered by __________ insurance.
a. freight
b. cargo
c. protection
d. hull
Calculate
Shareholders' equity if:
Total Share Capital = $575,000
Total Retained Earnings = $122,000
Treasury Shares = $325,000
a. $234,000
b. $768,000
c. $3,72,000
d. $1,29,000
An
asset is called an NPA (Non-Performing Asset) when the borrower fails to make
interest or principal payments for _________.
a. 30
days
b. 60
days
c. 90
days
d. 120
days
In
which of the following types of commodity markets are commodities bought and sold
for immediate delivery?
a. Spot
market
b. Derivatives
market
c. Both
a and b
d. None
of the above
Which
of the following statements regarding mutual fund schemes is true?
a. Mutual
fund schemes cannot invest in equities.
b. Mutual
fund schemes cannot invest in debt securities.
c. Mutual
fund schemes can give loans.
d. Mutual
fund schemes cannot invest in securities issued by central government, state
government, or public sector companies.
e. All
of the Above
State
whether the statement is true.
International
Funds or Foreign Funds invest only outside the home country.
a. True
b. False
Which
of the following is the highest possible rating assigned to the bonds of an
issuer by credit rating agencies such as Standard & Poor's and Fitch
Ratings?
a. AAA
b. AAAA
c. Aaa
d. AAa
State
whether the following statement is true or false. "Equity shareholders
have first preference in regard to the repayment of capital over others at the
time of winding up of a company."
a. True
b. False
Which
of the following types of schemes are close-ended in nature?
a. Bonds
b. Liquid
Funds
c. Floating
Rate Funds
d. Fixed
Maturity Plans
e. Both
a and c
Which
of the following statements about Index Scheme of mutual funds is/ are true?
a. These
are cheaper than ETFs (Exchange Traded Funds).
b. A
demat or broking account is required for these funds.
c. On a
particular day, the investors will get units at the same NAV (Net Asset Value)
irrespective of the time of purchase w.r.t cutoff time.
d. (a)&
(b)
Negative
equity exists _____________.
a. when
assets exceed preference share capital
b. when
accumulated profit exceeds assets
c. when
liability exceeds assets
d. when
accumulated profit exceeds liability
Investment
by private equity funds in unlisted companies is called:
a. Private
Investment in Public Equity
b. Private
Investment in Private Equity
c. Private
Investment in Partnership Equity
d. Private
Investment in Preferred Equity