Notice of loss should be given to the insurer within ________days of the event of loss.
- A . 30
- B . 15
- C . 7
- D . 21
Which of the following is/are the basic classification of financial risk?
- A . Speculative & Pure Risk
- B . Pure and Personnel Risk
- C . Static and Dynamic Risk
- D . All of the above
GDP at factor cost is equal to ________
- A . GDP at market price C indirect taxes + subsidies
- B . GNP at market prices C indirect taxes + subsidies
- C . GDP at market price + indirect taxes + subsidies
- D . GDP at market price + indirect taxes – subsidies
In addition to the contribution employer has to pay ______________% of wages as administration charges.
- A . 0.17%
- B . 0.18%
- C . 0.10%
- D . None of these
X, a shopkeeper says to Y, who manages his business C “Sell nothing to Z unless he pays you ready money, for I have no opinion of his honesty”. Can Z claim against X for defamation?
- A . Yes, he can
- B . No, if the statement has been said in the good faith
- C . No, because it has not been published
- D . None of the above
Cash Flow is a tool that is more useful for
- A . Short period financial analysis
- B . Long period financial analysis
- C . It is period agnostic
- D . None of the above
The markets for funds traded in currencies other than the currency of the trading country are referred to as
- A . off-shore banking centres.
- B . international financial centres.
- C . the world market.
- D . Eurocurrency markets.
Which among the following is not an advantage of setting up a trust?
- A . Allows for orderly distribution of assets and income following death
- B . Ensures that the estate poses to the intended beneficiaries
- C . Tax planning
- D . Protects against money laundering
How many sections are there in Householder’s Insurance Policy?
- A . 15
- B . 10
- C . 12
- D . 14
The standard deviation of the returns of a portfolio of securities will be _________ the weighted average of the standard deviation of returns of the individual component securities.
- A . Equal to
- B . Less than
- C . Greater than
- D . Less than or equal to (depending upon the correlation between securities)
Which of the following Mutual Funds was not set up within the Phase 2: 1987-1993?
- A . Canbank Mutual Fund
- B . Kothari Pioneer Mutual Fund
- C . SBI Mutual Fund
- D . LIC Mutual Fund
SRO stands for
- A . Supervisor Range Operations
- B . Statutory Regulation Offer
- C . Self Regulatory Organization
- D . Service Request Order
Which of the following is not the non- formal sources of law?
- A . Custom
- B . Equity
- C . Precedents
- D . Standards of Justice
If a testator makes a will ‘to induce another person to make him comply with his (testators) wish’ but does not have any testamentary operation or intention, then this will is called as
- A . Concurrent will
- B . Sham will
- C . Disguise will
- D . Duplicate will
Unabsorbed depreciation can be carried forward for ____________.
- A . 8 Years
- B . 4 Years
- C . Indefinite
- D . None
Which of the following is allowed as deduction from net annual value of a property?
- A . Repairs & collection charges
- B . Insurance premium
- C . Interest on loan borrowed for repairs
- D . All the above
Any amount payable and the amount of refund due under the Income Tax Act,1961 shall be rounded off to the nearest multiple of……….?
- A . Rs. 10
- B . Rs. 1
- C . Rs. 100
- D . No rounded off is done
__________ records net change in ownership of foreign assets
- A . Capital Account
- B . Current Account
- C . Official Reserve Account
- D . Balance of Payments
A muslim gentleman can leave his will, bequeathing all his properties to someone often than his legal heirs to the extent of…………….
- A . His wish
- B . A small portion
- C . One third
- D . One half
Which of the following is not an essential element of a trust?
- A . A trustee
- B . A beneficiary
- C . An administrator
- D . A personal obligation
The portfolio manager adds new stock to a portfolio. The stock has the same standard deviation as the existing portfolio but a correlation of coefficient with the existing portfolio that is less than +1.
What effect will adding the new stock have on standard of the revised portfolio?
- A . The standard deviation will increase
- B . The standard deviation will decrease
- C . The standard deviation will be unaffected
- D . Impossible to say without more information
Urban land means land situated in area not being more than ………………from local list of local authority as notification in official Gazette
- A . 5 km
- B . 8 km
- C . 10 km
- D . 20 km
Fundamental Analysis involves
- A . Reading charts of the stock
- B . Reading of company’s financials
- C . understanding the volume associated with stock
- D . None of the above
As per rule 69 of doubling, what is the doubling period if rate of interest is 9%
- A . 8.01 years
- B . 8 years
- C . 8.4
- D . 8.1
Mathematically the Efficient Frontier is the intersection of the Set of Portfolios with ….…. Variance and the Set of Portfolios with ……. Return.
- A . Maximum, minimum
- B . Minimum, maximum
- C . Minimum, minimum
- D . None of the above
In case of resident of India, income from property situated in foreign country is taxable
- A . When it is received in India
- B . When it is brought in India or not
- C . Whether it is received in India or not
- D . Not taxable
AUM stands for
- A . Asset Utilization Model
- B . Asset Under Management
- C . Area Under Management
- D . None of the above
Once the client accepts the proposal to prepare a wealth plan what is the next thing done by a wealth manager?
- A . The client signs the authority letter
- B . The client signs the acknowledgment
- C . The wealth manager makes an appointment with the client to present a plan
- D . All of the above
A person is said to be Agnate of another if the two of them are related by blood or adoption entirely or wholly through males.
- A . TRUE
- B . FALSE
Which of the following is not correct in relation to ETFs?
- A . ETFs provide exposure to an Index or a basket of securities that trade on the exchange like a single stock
- B . ETFs can be bought and sold on the exchange at prices that are usually closer to the actual intra Cday NAV of the scheme
- C . ETFs trade very close to their actual NAVs
- D . Intra Day trading of ETFs is very expensive
Types of shares are
- A . Preference shares
- B . Bank deposits
- C . Debentures
- D . All of the above
A “Mass Affluent” segment client has investible assets worth of
- A . $50,000
- B . $100,000
- C . $200,000
- D . None of the above
A kind of lease in business organisations wherein the lesssor and lessee agree to a payment schedule (normally some months) have no payment and penalty
- A . Sub-lease
- B . Pre-Paid Purchase Lease
- C . Skip Lease
- D . True Lease
Interest rate charged are higher in ……………
- A . Prime mortgage
- B . Sub prime mortgage
- C . Simple mortgage
- D . None of the above
Which of the following measure is most widely used as an indicator of inflation?
- A . GDP
- B . WPI
- C . CPI
- D . GDP implicit price deflator
What is the minimum amount one can deposit in a PPF account in a financial?
- A . Rs. 400 per annum
- B . Rs. 500 per annum
- C . Rs. 100/-per annum
- D . Rs. 5/-per annum
Stock dividends cause
- A . The price of a share of stock to rise
- B . The price of a share of stock to fall
- C . The value of the firm to rise
- D . The value of the firm to fall
Preparation of budget of a client is like doing _______________ for a patient
- A . A Lipid Profile
- B . ECG
- C . X-Ray
- D . All of the above
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called
- A . commodity markets.
- B . fund-available markets.
- C . derivative exchange markets.
- D . financial markets.
_______ is an unconditional written order to pay money.
- A . Bill of Exchange
- B . Cheque
- C . Both of the above
- D . None of the above
Which one of the following sections of the Transfer of Property Act, defines ’Notice’
- A . Section 2
- B . Section3
- C . Section 5
- D . Explanation H of Section 3
In “Teenage Years” life stage, one learns about ___________
- A . Budgeting
- B . Earned income
- C . How money makes money
- D . All of the above
How many registered offices can a company have?
- A . Two.
- B . Three.
- C . one office in each state.
- D . One office totally.
“Early accumulation” life stage is normally during ______
- A . 12- 19 years
- B . Our 20s
- C . 30-40
- D . Retirement years
Which of the following statement is true?
- A . Ordinary share capital is a high-risk high reward source of finance for investors
- B . Companies can freely price their share issues.
- C . Book building is a process to elicit demand for and price of, securities
- D . All of the above
Partition can be effected orally & there is no requirement in law that the partition must the evident try a written agreement
- A . TRUE
- B . FALSE
What is ‘Mudharabah’
- A . Sale
- B . Islamic loan transactions
- C . Exchange contracts
- D . Profit sharing
If POA in respect of in moveable property of value more than ………………….it must be registered
- A . Rs. 50
- B . Rs. 100
- C . Rs. 50000
- D . Rs. 100000
Surender the driver causes injuries to a pedestrian by rash driving of car. The injured victim had to spend Rs.1000 in treating his injuries. Surender ‘s act has created liabilities under
- A . Common law
- B . Contract
- C . Statue and Common law
- D . Statute only
First step in developing a Wealth Management Plan is
- A . Identify goals and objectives
- B . Identify and clarify the current situation
- C . Analyze problems and solutions
- D . Implementation of solutions
Merton’s theory is ___________
- A . Of continuous time finance
- B . a link from Arrow-Debreu world to real world
- C . about dynamic replication
- D . All of the above
Which of the following is not a business risk?
- A . Change of business cycles
- B . Change in Government policy
- C . Change in Government Law which affecting a particular industry
- D . Changes in Interest Rate
According to the capital asset pricing model, the expected rate of return on any security is equal to __________.
- A . [(the risk-free rate) + (beta of the security)] x (market risk premium)
- B . (the risk-free rate) + [(variance of the security’s return) x (market risk premium)]
- C . (the risk-free rate) + [(security’s beta) x (market risk premium)]
- D . (market rate of return) + (the risk-free rate)]
Multi period hedging is ________
- A . A way to manage qualitative risk over time
- B . A way to manage market risk over time
- C . A way to manage sentimental risk over time
- D . None of the above
What is the minimum paid up capital needed to form a public limited company?
- A . No Minimum requirement
- B . Rs. 100000
- C . Rs. 500000
- D . Rs. 1000000
For a “single income family” priority is on
- A . Protecting income via a term plan
- B . Investing in commodities to grow wealth
- C . Investing in Mutual Funds to grow wealth
- D . None of the above
Which of the following are the basic requirements for an existence of an HUF?
- A . Only I and II
- B . Only II and III
- C . All of these
- D . Only I and III
If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is
- A . Not allowable as a deduction in computing profits and gains of business or profession
- B . Allowed as a deduction spread over five successive previous year beginning with the previous year in which the amalgamation or demerger takes place
- C . Not deductible but is eligible to be treated as an intangible asset in respect of which depreciation can be claimed
- D . Fully deductible as revenue expenditure in the year in which it is incurred.
Government has changed certain industries related regulation in Parliament, it is an example of:
- A . Interest rate risk
- B . Political risk
- C . Market risk
- D . None of the above
IFSC stands for:
- A . Inter-bank Financial Sector Code
- B . Inter-bank Funds Settlement code
- C . Inter-bank Financial Service Code
- D . None of the above
Solvency ratio is usually __________ in the case of young couples as compared to senior citizens
- A . Lower
- B . Higher
- C . Equal
- D . There is no comparison
SHG stands for:
- A . Society Housing Group
- B . Society Household Group
- C . Self House Group
- D . Self Help Group
During “Financial Independence” life stage, typical asset allocation should be
- A . 25% equities, rest in fixed income instruments
- B . 50% equities, rest in fixed income instruments
- C . 75% equities, rest in fixed income instruments
- D . 100% equities
Where one can open an account under the Public Provident Fund Scheme, 1968?
- A . In any branch of the State Bank of India.
- B . In any branch of the State Bank of India, and its subsidiaries.
- C . In any branch of the State Bank of India, and its subsidiaries, or in any Head Post Office or any selected sub post office.
- D . In any branch of the State Bank Of India, and its subsidiaries, or in any Head Post Office or any selected sub post office or in any of the nationalized banks.
Mutual funds in India are required by SEBI to
- A . prohibit their employees from personal trading in secondary markets
- B . allow all employees to trade freely in secondary markets without restrictions
- C . establish a code of conduct and allow employees to do personal trading that conforms to SEBI guidelines
- D . allow employees to carry on personal trading as long as they abide by SEBI regulations
A public trust is created for the benefit of
- A . Individuals only
- B . Family member
- C . Uncertain and fluctuating body of persons
- D . Charitable purposes only
NSSO stands for ____________
- A . National Security Space Office
- B . National Shared Services Organization
- C . National Sample Survey Organization
- D . None of the above
Which of the following options is not true about CODICIL?
- A . It must be signed by the testator
- B . It must be attested by two witnesses
- C . It is an instrument made in relation to a will
- D . An instrument made by family members of the testator
In a life insurance contract, offer refers to
- A . Proposer paying the first premium
- B . Proposer’s application form for insurance
- C . Original policy bond
- D . Company brochure duly authenticated
Under the Provisions of Transfer, of Property Act, the unborn child acquires vested interest-
- A . Upon his birth
- B . 7 days after his birth
- C . 12 days after his birth
- D . 18 years after his birth
During “Early accumulation” life stage, typical asset allocation should be
- A . 25% equities, rest in fixed income instruments
- B . 50% equities, rest in fixed income instruments
- C . 75% equities, rest in fixed income instruments
- D . 100% equities
What is burn Arbun?
- A . Loan of a particular piece of property
- B . Credit sale
- C . Down payment
- D . Deposits in trust
If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is
- A . Not allowable as a deduction in computing profits and gains of business or profession.
- B . Fully deductible as revenue expenditure in the year in which it is incurred.
- C . Not deductible but is eligible to be treated as an intangible asset in respect of which depreciation can be claimed.
- D . Allowed as a deduction spread over five successive previous year beginning with the previous year in which the amalgamation or demerger takes place.
Doubling period is equal to
- A . 0.35+ (69/interest rate)
- B . 3.5+ (69/inflation rate)
- C . 0.035+ (69/interest rate)
- D . 35+(69/interest rate)
The subscription paid into PPF account enjoys the tax benefit under
- A . Sec 80D
- B . Sec 10
- C . Sec 80C
- D . Sec 80G
_______________ and _______________ mandates are two kinds of service level contracts
- A . Advisory, Discretionary
- B . Discretionary, Managed
- C . Advisory, Managed
- D . None of the above
______ serves as a bank for central banks
- A . Institute of International Finance
- B . IMF
- C . Bank for International Settlements
- D . All of the above
If everyone is forced to pay an extra Rs 1000 in taxes each year, "the" multiplier
- A . Is unchanged and income falls
- B . Becomes smaller and income falls
- C . Becomes larger and income falls
- D . becomes larger and income rises
Which of the following is controlled under monetary policy?
- A . Interest Rates
- B . Money Supply
- C . Inflation
- D . All of the above
……………………is a gift in the form of a single transfer to the same person of several things of which one is and the others are not burdened by an obligation, the done can take nothing by the gift unless he accepts if fully.
- A . Simple gift
- B . English gift
- C . Onerous gift
- D . Universal gift
What is a contract?
- A . An agreement between two or more parties which creates no obligation to do a particular thing.
- B . A contract is an agreement between two or more parties that does not establish an enforceable legal relationship.
- C . Contract consists of reciprocal promise that the law will not enforce.
- D . A contract is the result of a promise to do a certain thing in exchange for a promise from on their person.
A trust is extinguished if
- A . All the beneficiaries who all competent to contract have given their consent for revocation of the trust
- B . Fulfillment of its purpose her become impossible
- C . In purpose is completely fulfilled
- D . Any one of the above
Transfer of shares in the partnership firm is
- A . Restricted
- B . Freely transferable
- C . Prohibited
- D . None of these
A return relative is
- A . Total return
- B . Total return +1
- C . 1/ Total return
- D . 1 + 1/ Total return
Where the return of income is filed after the due date specified u/s 139(1):
- A . all deductions under Chapter VIA i.e. 80C to 80U will be allowable
- B . all deductions under Chapter VIA i.e. 80C to 80U will not be allowable
- C . all deductions under Chapter VIA i.e. 80C to 80U excepting 80-IA, 80-IAB, 80-IB, 80-IC will be allowable
- D . all deductions under Chapter VIA i.e. 80C to 80U except 80-IA will be allowable
Which school is prevalent all over India
- A . Dayabhaga
- B . Mitakshara
- C . Both
- D . None of the above
Document required to open a bank account is/are
- A . Identity Proof
- B . Residence Proof
- C . Photographs
- D . All of the above
Deposit insurance covers _______.
- A . Savings
- B . Current
- C . Term
- D . All of the above
Modern “Asset Allocation” is based upon the model developed by Harry Markowitz.
Which of the following statement is/are correctly identified with this Model?
- A . I & II only
- B . I, II & III only
- C . I only
- D . I, II & IV only
In PPF the term/duration of the account is 15 years from :
- A . The end of financial year in which the account is opened.
- B . The date of deposit the first installment
- C . The 30 days of deposit the first installment
- D . The 12 months of deposit the first installment
In case of monthly premium payments, days of grace are
- A . 10 Days
- B . 15 Days
- C . 30 Days
- D . Three Weeks
A measure of the riskiness of an asset held in isolation is _____________.
- A . Beta
- B . Standard deviation
- C . Covariance
- D . Semi-variance
A bond, issued in a foreign country, is denominated in a currency other than the currency of the country in which it is issued is called:
- A . Euro Bond
- B . Samurai Bond
- C . Yankee Bond
- D . Foreign Bond
PTA stands for
- A . Parent Teacher Association
- B . Preferential Trading Area
- C . Preferential Transportation Assembly
- D . Payment Trade Ambit
Which of the following determines the exchange rate?
- A . Demand of foreign exchange.
- B . Supply of foreign exchange.
- C . Both A&B
- D . Inflation rate.
According to the dividend-growth model, the valuation of common stock depends on
- A . I and II
- B . I and III
- C . II and III
- D . All of the above
Which of the following statement is true?
- A . The Jensen index compares actual performance to the risk-adjusted required performance.
- B . The Treynor index assumes that portfolios are not well diversified.
- C . The Sharpe index standardizes performance by the portfolio’s beta.
- D . Option A and B
Which of the following is not true?
- A . Only II
- B . Only I and II
- C . Only III
- D . None of these
In …………………without delivery possession of the mortgaged property, there mortgager binds himself personally to pay the mortgage money
- A . Usufructuary mortgage
- B . Simple mortgage
- C . English mortgage
- D . Anomalous mortgage