_____ is the art and science of making decision about investment mix.

A. Insurance
B. Tax
C. Retirement
D. Portfolio

Answer: D

A ___ is generally defined as a person a firm that has agreed to act for and on behalf of
someone else in a role and manner that produces a relationship of trust and confidence.

A. Fiduciary
B. Unbelievable
C. Unconvincing
D. Unlike

Answer: A

_____ is the education and understanding of various financial areas.

A. Financial Literacy
B. Financial Illiteracy
C. Money
D. Portfolio

Answer: A

_____ is a process which will enable you to meet your life goals through the proper
management of your finances.

A. Financial Planning
B. Goal Based Planning
C. Tax
D. Portfolio

Answer: A

_____ is not just a way to help you manage your investments but it is also necessary for
maximizing how effectively you manage your money and investments.

A. Financial Planning
B. Goal Based Planning
C. Tax
D. Portfolio

Answer: B

____ is the evaluation of a company’s cash inflows and outflows from operations, financing
activities, and investment activities.

A. Insurance Analysis
B. Goal Based Analysis
C. Tax Analysis
D. Cash Flow Analysis

Answer: D

_____ is a dynamic process that does not end when you take a particular action.

A. Financial Planning
B. Goal Based Planning
C. Tax
D. Portfolio

Answer: A

An ____ is the cost of borrowing money, or conversely the income earned from lending
money.

A. Bonus
B. Interest Rate
C. Profit
D. Surplus

Answer: B

_____ interest rates change depending on an underlying interest rate, usually the current
index value.

A. Fluctuate
B. Fixed
C. Variable
D. Semi Variable

Answer: C

A _____ interest rate stays the same over the life of a loan.

A. Fluctuate
B. Fixed
C. Variable
D. Semi Variable

Answer: B

The ____ gives the investor a clue concerning the future course of Interest rate.

A. Yield Curve
B. Bar Curve
C. Line Curve
D. Normal Curve

Answer: A

A ____ is the annual percentage return realized on an investment, which is adjusted for
changes in prices due inflation or other external effects.

A. Profit
B. Interest
C. Bonus
D. Real rate of return

Answer: D

_____ provide life cover with no saving profits component.

A. Term Insurance
B. ULIP’s
C. Endowment Plan
D. Child Plan

Answer: A

____ is a type of general insurance policy.

A. Health policy
B. Life Insurance Policy
C. Fire Policy
D. Car Policy

Answer: C

___ combines both insurance and investment.

A. TULIP
B. ULIP
C. LIUP
D. PLUI

Answer: B

A ____ policy is a variant of the endowment plan.

A. Term Plan
B. ULIP
C. Whole Life Policy
D. Money Back Policy
Answer: D

____ covers all damages and liability to a vehicle against various on road and off road
emergencies.

A. General Insurance
B. Life Insurance
C. Motor Insurance
D. Health Insurance

Answer: C

____ covers the medical and surgical expenses of the insured individual due to
hospitalization from an illness.

A. General Insurance
B. Life Insurance
C. Motor Insurance
D. Health Insurance

Answer: D

____ Insurance covers goods, freight, cargo and other interest against loss or damage during
transit by rail, road, sea and or air.

A. General Insurance
B. Life Insurance
C. Motor Insurance
D. Marine Cargo Insurance

Answer: D

Under ____ mediclaim policy, only gets coverage for his/her family as well.

A. General Insurance
B. Life Insurance
C. Family Floater
D. Health Insurance
Answer: C

The ____ concept deals with Human Capital, which is a person’s income potential.

A. Human Life Value

B. Person Life Value
C. Human Insurance Value
D. Health Life Value

Answer: A

____ wealth management matches your time horizon to your asset allocation.

A. Aim Based
B. Profit Based
C. Goal Based
D. Asset Based

Answer: C

____ fund are a relatively new approach to retirement investing.

A. Retire
B. Life Cycle
C. Accumulate
D. Sinking

Answer: B

To derive a __ asset allocation the economic model should take individual life situations into
account.

A. Optimal
B. Peak
C. Minimum
D. Goal Based
Answer: A

__ is the important component in assessment of the prospects of an investment.

A. Return
B. Profit
C. Asset
D. Risk

Answer: D

The term consists of all properly owned by you at the time of your death.

A. Estate
B. Will
C. Career
D. Job

Answer: A

_____ is a legal document that allows an individual to demine who is the beneficiaries of
their estate.

A. Last testament
B. Non Living trust
C. Will
D. Last will and testament

Answer: D

_____ may include any type of property a person wishes to collect.

A. Estate Planning
B. Collectible
C. Will
D. Charity

Answer: B
_____ a challenge unique to estate and succession planning related to collectibles.

A. Power
B. Will
C. Capital gain tax
D. Last will and testament

Answer: C

_____ provides family members and medical professionals with a predetermined list of
directives the individual wishes to have followed should they become incapacitated and
unable to make decisions.

A. Durable will
B. None Durable Will
C. Living Will
D. Last will and testament

Answer: C

Under ___ mediclaim policy, only a single person can be covered.

A. Individual
B. Family
C. Floater
D. Mix

Answer: A

___ is used as an effective tool of risk management as quantified risks of different volumes
can be insured

A. Capital
B. Profit
C. Insurance
D. Life

Answer: C
The party whose risk is shifted to the insurer is known as the ____.

A. Insurer
B. Client
C. Person
D. Insured

Answer: D

The main objective of every ____ contract is to give financial security and protection to the
insured from any future uncertainties.

A. Capital
B. Profit
C. Insurance
D. Life

Answer: C

According to principle of __ the insurance contract must be signed by both parties in an

absolute good faith or belief or trust.

A. Indemnity
B. Insurable Interest
C. Subrogation
D. Utmost

Answer: D

____ means a fixed payment made periodically as compensation for regular services
rendered.

A. Income
B. Salary
C. Return
D. Interest

Answer: B
____ aimed to compensate for the rising cost of living.

A. Travel Allowance
B. L T A
C. H R A
D. Dearness Allowance

Answer: D

____ is special allowance granted to an employee by his employer to specially meet

expenditure actually incurred on the payment of rent for residential accommodation
occupied by him.

A. Travel Allowance
B. L T A
C. H R A
D. Dearness Allowance

Answer: C

____ means any casual emoluments or benefits attached to an office or position in addition
to salary.

A. Perquisite
B. Concession
C. Exemption
D. Discount

Answer: A

___ of basic salary is deducted from employee’s salary as contribution toward provident
fund.

A. 14%
B. 15%
C. 12%
D. 11%

Answer: C
___ is a lump sum amount paid to an employee, on the basis of the duration of him
employment or termination of services due to retirement, resignation, death etc.

A. Bonus
B. Salary
C. Gratuity
D. Pension

Answer: C

___ is the monthly payment by the ex-employer to a retired employee which is taxed as
salary.

A. Pension
B. Salary
C. Gratuity
D. Income

Answer: A

___ in a financial context refers to the allocation of savings or revenue for retirement.

A. Growth Planning
B. Retirement Planning
C. Tax Planning
D. Wealth Planning

Answer: B

___ measure the value of all the assets of worth owned by a person, community, company
or country.

A. Tax
B. Wealth
C. Retirement
D. Growth

Answer: B
Wealth Management is a type of financial services the combines both _____ and specialized
financial services.

A. Control
B. Planning
C. Structure
D. Portfolio

Answer: B

____ planning involves an analysis of the various choice you can make today to help provide
for your financial future

A. Growth
B. Tax
C. Retirement
D. Insurance

Answer: C

____ is a way by which you can reduce your tax liability without breaking up any law.

A. Growth
B. Tax
C. Retirement
D. Portfolio

Answer: B

____ refers to the act of skills and knowledge that allows an individual to make effective
decision worth all of their financial resources.

A. Financial Literacy
B. Financial Illiteracy
C. Money
D. Portfolio

Answer: A
___ Management is the art of services of making decision about investment mix.

A. Financial
B. Wealth
C. Cost
D. Portfolio

Answer: D

___ is a professional service that combines financial/investment advice accounting/tax

services, retirement planning and legal/estate planning of one fee.

A. Financial
B. Wealth
C. Cost
D. Portfolio

Answer: B

Wealth Management is a type of financial services the combines both _____ and specialized
financial services.

A. Control
B. Planning
C. Structure
D. Portfolio

Answer: B

____ planning involves an analysis of the various choice you can make today to help provide
for your financial future

A. Growth
B. Tax
C. Retirement
D. Insurance

Answer: C
____ is a way by which you can reduce your tax liability without breaking up any law.

A. Growth
B. Tax
C. Retirement
D. Portfolio

Answer: B

____ refers to the act of skills and knowledge that allows an individual to make effective
decision worth all of their financial resources.

A. Financial Literacy
B. Financial Illiteracy
C. Money
D. Portfolio

Answer: A

___ Management is the art of services of making decision about investment mix.

A. Financial
B. Wealth
C. Cost
D. Portfolio

Answer: D

___ is a professional service that combines financial/investment advice accounting/tax

services, retirement planning and legal/estate planning of one fee.

A. Financial
B. Wealth
C. Cost
D. Portfolio

Answer: B

___ gives clear picture of inflow and outflow of cash.

A. Cash Inflow
B. Credit Inflow
C. Material
D. Cash Outflow

Answer: A

___ involves an analysis of the various choice you can make today to help provide for your
financial future.

A. Growth
B. Tax
C. Retirement
D. Portfolio

Answer: C

_____ is a way by which you arrange your financial affairs in such a way that without
breaking up any law you take full advantage or all exemptions, deduction, rebate and reliefs.

A. Insurance
B. Tax
C. Retirement
D. Portfolio

Answer: B

_____ is the process of analysing what type of insurance is needed for the protection of a
person’s assets and ability to create assets.

A. Insurance
B. Tax
C. Retirement
D. Portfolio

Answer: A

_____ rates charge interest on the principal and on previously earned interested.

A. Fluctuate
B. Fixed
C. Variable
D. Compound

Answer: D

A ___ rate is the rate of which the RBI lends money to commercial banks.

A. Investors
B. Post office
C. Bank
D. Capital Market

Answer: C

An ____ in the demand for loans and credit will increase the rate of interest, while a higher
supply of credit will cause a fall in the rate of interest.

A. Stable
B. Decrease
C. Flat
D. Increase

Answer: D

The ___ curve also known as he “Term structure of interest rate” is a graph that plots the
yields of similar quality bonds against their maturities, ranging from shortest to longest.

A. Line
B. Bar
C. Yield
D. Straight
Answer: C

A yield curve depicts__ that are due solely to differences in maturity.

A. Yield Spread
B. Yield Gap
C. Yield Space
D. Yield

Answer: A

In short term yields are lower than long term, then the curve is referred to as an __.

A. Positive
B. Negative
C. Inverted
D. Null

Answer: A

A ___ yield curve exists when there is little or no difference between short and long term
yields.

A. Stable
B. Decrease
C. Flat
D. Increase

Answer: C

In short term yields are higher than long term, then the curve is referred to as an __.

A. Positive
B. Negative
C. Inverted
D. Null

Answer: C
____ Yield curves are also known as bell shaped curves.

A. Humped
B. Inverted
C. Flat
D. Normal

Answer: A

____ Yield curves is a type of yield curve that results when the interest rates on medium
term fixed income securities are higher than the rates of both long and short term
instruments.

A. Humped
B. Inverted
C. Flat
D. Normal

Answer: A

The principle of ___ states that the person getting insured must have insurable interest in
the object of insurance.

A. Indemnity
B. Insurable Interest
C. Subrogation
D. Utmost

Answer: B

__ means security, protection and compensation given against damage, loss or injury.

A. Indemnity
B. Insurable Interest
C. Subrogation
D. Utmost

Answer: A
The __ is the right of an insurer who has paid a loss under a policy to recover a
proportionate amount from other insurer who is liable for the loss.

A. Share
B. Interest
C. Contribution
D. Utmost

Answer: C

____ is principle, which applied to all contracts of indemnity.

A. Indemnity
B. Insurable Interest
C. Subrogation
D. Utmost

Answer: C

According to the principle of ___ insured must always try his level best to minimize the loss
of his insured property in case of uncertain events like a fire outbreak or blast etc.

A. Loss Minimization
B. Loss Maximization
C. Subrogation
D. Cause Proxy

Answer: B

____ provides certainty of payment at the uncertainty of loss.

A. Insurance
B. Bank
C. Capital
D. Cause Proxy

Answer: A

____ are the most basic form of life Insurance.

A. Term Plan
B. ULIP
C. Whole Life Policy
D. Money Back Policy

Answer: A

____ plans differ from term plans in one critical aspect i.e. maturity benefit.

A. Term Plan
B. Endowment
C. Whole Life Policy
D. Money Back Policy

Answer: B

____ are a variant of the traditional endowment plan.

A. Term Plan
B. ULIP
C. Whole Life Policy
D. Money Back Policy

Answer: B

A ____ insurance policy covers a policyholder over his life.

A. Term Plan
B. ULIP
C. Whole Life Policy
D. Money Back Policy

Answer: C

__ is the rigorous implementation of an investment strategy that attempts to balance risk

versus reward.
A. Profit Allocation
B. Risk Allocation
C. Asset Allocation
D. Return Allocation

Answer: C

___ risk is the risk of investments declining in value because of economic developments or
other events that affect the entire market.

A. Liquidity
B. Hypothesis
C. Equity
D. Goal Based

Answer: B

A __ rate of return is the amount of money generated by an investment before factoring in

expenses such as taxes, investment fees and inflation.

A. Nominal
B. Real
C. Incremental
D. Total

Answer: A

The ____ annual interest rate is the interest rate that is actually earned or paid on an
investment, loan or other financial product due to the result of compounding over a given
time period.

A. Nominal
B. Real
C. Incremental
D. Effective

Answer: D
__ is a metric used in capital budgeting measuring the profitability of potential investments.

A. Nominal
B. Internal rate of return
C. Real
D. Incremental

Answer: B

The __ of an investment is the underlying compound interest rate that equals the end value
of the investment with its beginning value.

A. Compound annual growth rate

B. Real
C. Incremental
D. Total

Answer: A

____ is the total return on an asset or portfolio over a period during which it was held.

A. Nominal
B. Real
C. Incremental
D. Holding Period Return

Answer: D

Assets = _________ + Stockholders Equity.

A. Liabilities
B. Fixed Assets
C. Current Assets
D. Debt Fund

Answer: A

_____ is the difference between the asset and the liability of an individual or a company.

A. Net worth
B. Debt
C. Fixed Assets
D. Fictitious Assets

Answer: A

Net Worth = Total Assets - _________ Liabilities.

A. Internal
B. External
C. Incremental
D. Total

Answer: B

_____ is the education and understanding of various financial areas.

A. Financial Literacy
B. Financial Illiteracy
C. Money
D. Portfolio

Answer: A

_____ is a process which will enable you to meet your life goals through the proper
management of your finances.

A. Financial Planning
B. Goal Based Planning
C. Tax
D. Portfolio

Answer: A

The ____ gives the investor a clue concerning the future course of Interest rate.

A. Yield Curve
B. Bar Curve
C. Line Curve
D. Normal Curve

Answer: A

A ____ is the annual percentage return realized on an investment, which is adjusted for
changes in prices due inflation or other external effects.

A. Profit
B. Interest
C. Bonus
D. Real rate of return

Answer: D

_____ provide life cover with no saving profits component.

A. Term Insurance
B. ULIP’s
C. Endowment Plan
D. Child Plan

Answer: A

The term consists of all properly owned by you at the time of your death.

A. Estate
B. Will
C. Career
D. Job

Answer: A
_____ is a legal document that allows an individual to demine who is the beneficiaries of
their estate.

A. Last testament
B. Non Living trust
C. Will
D. Last will and testament

Answer: D

_____ may include any type of property a person wishes to collect.

A. Estate Planning
B. Collectible
C. Will
D. Charity

Answer: B

_____ a challenge unique to estate and succession planning related to collectibles.

A. Power
B. Will
C. Capital gain tax
D. Last will and testament

Answer: C

_____ provides family members and medical professionals with a predetermined list of
directives the individual wishes to have followed should they become incapacitated and
unable to make decisions.

A. Durable will
B. None Durable Will
C. Living Will
D. Last will and testament

Answer: C