1 Co-variance may be:

Negative or positive
More than 100
Less than 1
None of these

2 X retires from ABC Ltd as on June 30, 2012. He gets pension of Rs. 20,000 per month up to Jan 31, 2013.
With effect from Feb 1, 2013, he gets 60% of pension commuted for Rs. 10,00,000/-. He also received
Gratuity of Rs. 50,000/- up on his retirement. Calculate total amount of taxable pension the p/y 2012-13

Rs.600400
Rs.600444
Rs.700444
Rs.604444

3 Bonus is an amount that is added to the sum assured, announced periodically as a percentage of the sum
assured. It is paid out ------------

Monthly
Quarterly
Half yearly
along with the maturity value or on the occurrence of the insured event.

4 In a defined benefit plan, the pension amount or value of --------------- is known beforehand.

Retirement contribution
Retirement benefit
Both
None of these

5 What is portfolio management?

Refers to the management of the portfolio of investments of a particular person.

Decision of how much to invest, where to invest and how much to invest in each asset selected.
None of these
Both

6 Standard deviation measures.

the deviation around the expected return

the deviation around the beta
the deviation around the geometric mean
the deviation around the CAGR

7 On 25-2-2020, Mr. Kaushal gifted his personal building to his friend Mr. Lala. The market value of the
building was Rs. 18,40,000 and the value of the building adopted by the Stamp Valuation Authority for
charging stamp duty was Rs. 19,00,000. What will be the tax implications of the above items in the hands of
Mr. Kaushal?

NIL
Rs. 50000
Rs. 60000
Rs.10000

8 A reverse mortgage loan cannot be availed against commercial property.

True
False
Can be availed with some conditions
None of these
9 Endowment is a level premium plan with a savings feature. ------- a lump sum is paid out, equal to the sum
assured plus any accrued bonus.

After 10 years
After 15 years
At maturity
After 20 years

10 Money Back Insurance Policies are a type of endowment policies that covers life and also assures the
return of a certain per cent of the sum assured as cash payment at -----------------intervals.

Regular
Monthly
Quarterly
Yearly

11 Manya bought a house in July 2004 for Rs 50 lakh, and the full value of consideration received in FY 2016-
17 is Rs 1.8 crore. This would be a --------- capital gain.

Short term
long-term
Immovable
None of these

12 Which are included in types of perils - ______

Insured
Excluded
Other
All of these

13 Insurance is primarily a tool for -------- from financial loss.

Saving
Wealth creation
Protection
None of these

14 In case an asset is acquired by gift, will, succession or inheritance, the period for which the asset was held
by the previous owner is --------------included when determining whether it’s a short term or a long-term capital
asset.

Also
Not
Partially
None of these

15 The Insurance Regulatory and Development Authority Regulations require all life insurance products with
terms of more than 10 years to provide a minimum sum assured of ----- times the annual premium for
individuals below 45 years of age and seven times the annual premium if age is above 45 years.

4
5
10
15

16 A characteristic of the insurable risk is that it does not involve any prospect of ----------.

Loss
gain or profit
Taxation
None of these

17 Other things equal, diversification is most effective when classes of securities included in portfolio have
______.

negatively correlated returns

positively correlated returns
high returns
uncorrelated returns

18 IRDA was formed in

1999
1989
1972
2009

19 There are two distinct stages in retirement:

the accumulation stage and the equity stage

the accumulation stage and the debt stage
the accumulation stage and the distribution stage
None of these

20 Indexed cost of acquisition is calculated as Cost of acquisition / Cost inflation index (CII) for the year in
which the asset was first held by the seller, or --------------------, whichever is later X cost inflation index for the
year in which the asset is transferred

2011-12
2004-05
2001-02
None of these

21 Which is not a derivative product?

Options contract,
Futures contract,
Forwards contract,
Bank’s Fixed deposit

22 Capital gains are not applicable to ----------------- as there is no sale, only a transfer of ownership. The
Income Tax Act has specifically exempted assets received as gifts by way of an inheritance or will.

an immovable property
an inherited property
a movable property
None of these

23 In insurance, the loss should be -------- as to cause and amount and no prospect of gain or profit.

Indefinite
Huge
Definite
None of these

24 Which is not a type of hazards ______

Physical,
Moral
Morale
Bank default
25 If person dies without making a will, he is said to have died “--------------” and in such case his property will
be inherited by his heirs in accordance with laws of succession applicable to him.

Testate
Pre mature
Intestate
None of these

26 ---------------------------- has been designated the CRA for the NPS.

State Bank of India

HDFC Bank
CDSL
NSDL e-Governance Infrastructure Ltd

27 In futures contract contracts… Buyer is long and is obligated to -------,and Seller is short and is obligated to
sell

Sell
Buy and sell both
Buy
None of these

28 For an individual with dependents, the primary need _______

Accidental plan
is income replacement to support his family in the event of his death
Investment in equity
None of these

29 In a defined contribution plan, the ------------ amount is not known beforehand:

Pension
PF
Both
None of these

30 Portfolio return is 15%,risk free rate is 6%,standard deviation is 3%.Calculate Sharpe Ratio.

3
6
2
None of these

31 The term ‘estate’ includes all assets and liabilities belonging to a person at the time of their ---------------.

Death
Writing the Will
Retirement
None of these

32 Which is not a money market instrument?

Treasury bills,
equity,
CP,
CD,

33 Q 40. Which do not come under the category of capital asset:

Any stock, consumables or raw material, held for the purpose of business or profession
Personal goods such as clothes and furniture held for personal use
Agricultural land in rural India
All of these

34 To be insurable, the event being insured against, such as death, accident or fire must result in a ----------
which can be quantified and insured against.

Financial loss
Financial gain
Net Profit
None of these

35 In NPS, the individual account is identified by a unique ----------------

PAN Number
CERSAI Number
AMFI Code Number
Permanent Retirement Account Number (PRAN)

36 Variable Insurance Products are products that combine insurance and investment. The premium paid will
have a component For 1. risk cover and 2. another portion which is the ------------ component

Tax
Investment
Claim
None of these

37 Correlation co efficient of 0 means :

No linear relationship between two securities

linear relationship between two securities
perfect relationship between two securities
None of these

38 A defensive stock is characterized by:

Negative beta
Positive beta less than one
Positive beta more than one
Beta equal to one

39 A young individual without any dependents may probably need a --------

Term plan
Endowment plan
personal accident insurance policy that will give him an income in the event of him being incapacitated in an accident
None of these

40 Where any person receives, in any previous year, from any person or persons any property other than
immovable property without consideration, the aggregate fair market value of which exceeds fifty thousand
rupees, the whole of the aggregate fair market value of such property will be taxable in the hands of -----------.

Giver
Receiver
Both
None of these

41 A call option is: in-the-money If exercise price is ------ than the spot price of the underlying asset.

Less
More
Equal
None of these
42 Insurable risk means ________

loss must occur by chance

loss must be definite
loss must be significance
All of these

43 Insurance enables risk transfer from the beneficiary (insured) to the --------

Bank
IRDA
insurance company (insurer),
None of these

44 All central government employees who joined service after January 1,-------, are enrolled into the NPS
which is a defined contribution pension plan.

2014
2007
2010
2004

45 Mr A sold his property January 2016 at Rs. 50 lakh, which he had purchased in December 2014 for Rs. 30
lakh. As per his income, Mr. A falls in the highest tax slab of 30%. Mr. A spent around Rs. 2 lakh on house
improvement during the period and also paid a brokerage of 0.5 per cent of the sale price of the house at the
time of selling the house. What will be his taxable capital gains and what is the tax amount payable by him?

Rs.1775000
Rs.1875000
Rs.1975000
None of these

46 Mr. X retires from Govt service as on May 31, 2012. He gets pension of Rs. 15,000 per month up to
December 31, 2012. With effect from January 1, 2013, he gets One third of his pension commuted for Rs.
10,00,000 . He is not in receipt of Gratuity. Calculate the amount of taxable uncommuted pension

Rs. 135000
Rs.155000
Rs.175000
Rs.125000

47 Cost of acquisition and improvement is indexed by applying ----------

IT rates
GST rates
CII (cost inflation index).
None of these

48 Capital Gains head shall be applicable only if following conditions have been fulfilled:

There is a capital asset,

There is a transfer.
It should not be exempt u/s 54
All of these

49 In reverse mortgage, you pledge a property --------------- (with no existing loan outstanding against it).

Already mortgaged to bank

Which is rented
you already own
None of these
50 In Employee Provident Fund Scheme, the employee and the employer each contribute --------- (10% in
some special cases) of the basic emoluments and allowances to the employee’s EPF account. Employees
can contribute over and above the statutory rate of ----------.

12%, 12%
15%, 15%
11%, 11%
8.75%, 8.75%

51 ------- is the regulator of the insurance business in India.

RBI
IRDAI
SEBI
PFRDA

52 Reversionary bonus is based on the ------- of the insurance company and is declared for policy holders at
the discretion of the insurer.

Performance
Will
Guarantee
None of these

53 Winnings from lotteries, crossword puzzles, races including horse races, card game and other game of any
sort, gambling or betting of any form whatsoever, are always taxed under ----- head.

Income from house property

Income from business and profession
Income from other sources
Capital gains

54 Reversionary bonus is declared after the completion of the guaranteed bonus period and is applicable to
--------------- policies.

Participating
all
General insurance
Health insurance

55 Term insurance is a pure risk cover product. It pays a benefit only if the policy holder dies ------- the period
for which one is insured.

After
During
After attaining the age of 50 years
None of these

56 Conservative Investors have a ------ risk tolerance.

Medium
High
Low
None of these

57 Coefficient of Correlation lies in the range of-------

0 to1
1 to 2
1 to 5
-1 to +1
58 Which is not a Post office savings scheme?

ELSS
NSC
KVP
S S Saving Scheme

59 Which is not a Mutual Fund scheme?

Money market MF,

Liquid Fund,
Debt Fund,
PPF

60 Inflation rate is 8%,nominal intt. Rate is 12%.What is real effective rate of intt?

4%
3.2%
3.7%
8%

61 Sum assured is the amount being --------------

Paid as claim
Paid as premium
Insured
None of these

62 Policies with survival benefits combine saving and protection benefits while policies with only death
benefits are -----------

Rare
pure protection products
Bank deposit plans
For earning profit

63 If you sell house property after holding it for a period of 24 months, any income arising will be treated as
------------ capital gain provided that property is sold after 31st March 2017.

Short term
long-term
Nil
None of these

64 In reverse mortgage, the eligibility Criteria is----- I. Indian citizen of ----- years or more, II. Married couples
will be eligible as joint borrowers for joint assistance. In such cases, the age criteria for the couple would be at
the discretion of the RML lender, subject to at least one of them being above 60 years of age and the other
not below 55 years of age.

60
50
75
70

65 Under-insurance will imply that the beneficiary who is likely to suffer the loss is ----------------

retaining a portion of the risk with themselves

Not taking any insurance
Taking general insurance
None of these
66 Hazard is the condition, which increases the risk or seriousness of a loss. I.e.,it is a condition or situation
that makes it more likely that a ----------- will occur.

Accident
Collapse
Peril
None of these

67 What are the key factors to be considered in term insurance:

Sum assured (protection or death benefit)

Premium to be paid (cost to the insured), and
Length of coverage (term).
All of these

68 Any sum received under a Keyman Insurance Policy including bonus is charged under----------head:

Income from house property

Income from business and profession
Income from other sources
Capital gains

9 Total risk =

Systematic risk + non systematic risk

Systematic risk
non systematic risk
None of these

70 As per Budget 2018, long term capital gains on the sale of equity shares/ units of equity oriented fund,
realised after 31st March 2018, will remain exempt up to Rs.--------- lakh per annum.

1
2
2.5
0.5