Unit

Qs_No Question
I 1 Financial goals do not include _________
I 2 According to the wealth cycle approach, a 55 year old investor who
I 3 The first step of financial planning process is ________
I 4 The last step of financial planning process is ______
I 5 ________ is not the most "common" life goal.
I 6 While offering solutions to clients, the following aspects of personal finance need not be analyse
I 7 Cash and cash equivalents are example of _______
I 8 Adequacy of income becomes more important than growing wealth
I 9 A _______ is a graph that shows the relationship between term to m
I 10 ________ will help in overcoming any short-term cash deficiencies
I 11 Corporate bonds have higher yields than government bonds becaus
I 12 While _____ indicators forecast economic fluctuation, _____ indica
I 13 Identify when an upward sloping yield curve will appear?
I 14 Define a flat yield curve.
I 15 Plots of the yield curve can be useful for _______
I 16  Suppose that businesses believe that the economy is about to expand, then we could expect ____
I 17 What happens to the yield curve if there is a rise in expected inflat
I 18 When interest rates go up, prices of fixed interest bonds ________
I 19 What is the mean of Repo Rate?
I 20 When the cash reserve ratio (CRR) is increased by the RBI, it will:
I 21 _________ is the official mimimun rate at which Central Bank of a
I 22 The minimum interest rate of a bank below which it is not viable t
I 23 Bank rate is the rate at which
I 24 Mr.Tom shares information with his friend about his clients recen
I 25 _________ requires behaving with dignity and showing respect and co
I 26 __________requires client information to be protected and maintai
I 27 ________ requires fulfilling professional commitments in a timely
I 28 ____________ requires wealth managers to have updated knowledge
I 29 ________ shows a person's Income and expenses for a given period
I 30 Yield curve is ________ when there is little or no difference betwe
I 31 What is a lagging performance indicator?
I 32 _____ indicators change before the economy itself changes.
I 33 _____ indicators change after the economy as a whole changes.
I 34 Changes in stock prices, credit growth, manufacturing activity, etc
I 35 A variable that moves later than aggregate economic activity is ca
I 36 A variable that occur simultaneously with the business cycle move
I 37 Which one of the following is not an example of coincident indicat
I 38 When aggregate economic activity is declining, the economy is sai
II 39 Uncertainty of the ability of an investor to exit from an investmen
II 40 Which of the following is not the advantage of investment in mutu
II 41 Stock Mutual Fund is also know as _____
II 42 Which of the following has the longest investment horizon?
II 43 _______ pools money from investors and invest in different securit
II 44 In a deep recession, professional investors are likely to prefer ___
II 45 Fund management costs are low for ______
II 46 Asset Distribution based on risk profile is called _______
II 47 A mutual fund that invests in Indian Equities, Foreign Equities, In
II 48 Which of the following is not a growth asset?
II 49 A client explains that she only wants an insurance policy that will
II 50 Premium on Motor Insurance policy doesn't depend on which one of
II 51 An investor seeking fulfillment of his goals operates under certain
II 52 Which of the following stocks perform better during economic do
II 53 The risk tolerance of an investor is not dependant on _________
II 54 Land normally is considered ______
II 55 Difference between physical and financial assets is on the basis o
II 56 _______ does not affect the risk profile of a customer
II 57 Normally, how many months' expenses should be put aside so that they can be liquidated at a sho
II 58 ________ is an advantage of Active Asset Allocation
II 59 An investor who is willing to invest 90-100% of savings in Fixed
II 60 _________ policy has combined benefits of Insurance and Mutual
II 61 In the case of life insurance ____________ is not applicable.
II 62 The concept of idemnity is based on the key principle that policy
II 63 Investors prefer to hold more investments in bonds because they
II 64 Mr. Sam's wife is the CFO of a company. If Mr. SAM is offered to
II 65 The art of selecting the right investment policy for the individua
II 66 Which of the following is the best option to park money for a long p

II 67 What is Financial inclusion?

II 68 With respect to mutual funds, What is the meaning of NAV?

II 69 Which of the following factors does not match with the need of hea
II 70 Compared with passive investment management, active investment
II 71 _________ should be the first goal while preparing a financial plan
II 72 _______ is the price paid by the insured to the insurer for the risk
II 73 ________ plans are provided by life insurance companies to investo
II 74 Investment in ________ will earn a fixed rate of interest throughou
II 75 ________ is the process of forecasting future expenses and savings.
II 76 Budgeting helps in ssetting goals by estimating ________ on a mo
III 77 What is the main benefit of Estate Planning?
III 78 In the context of estate planning, intestacy refers to _______.
III 79 Pension received from a former employer is classified under the he
III 80 Section 80C deduction is available for _______
III 81 There are tax sops are available for _________
III 82 The act of determining how wealth will be distributed before or u
III 83 What is a benefit of a trust over a will?
III 84 What does it mean to die intestate?
III 85 The three parties are involved in a trust are ______.
III 86 Health Insurance premium provide tax exemption under section __
III 87 TDS stands for ________
III 88 Deduction for interest on higher education loan can be claimed un
III 89  While making intra-head adjustment,loss from the business of owning and maintaining race hors
III 90 If loss under the head “Income from house property” cannot be fully
III 91 Short term capital loss can be adjusted against ________
III 92 Long term capital loss can be adjusted against _____
III 93 Payment of LIC premium can be claimed as deduction u/s _______
III 94 Net profit ratio shows the relation between net profits and ______
III 95 The ratio which measures the profit in relation to capital employ
III 96 The ratio of current assets to current liabilities is called_______.
III 97 Shareholders funds + Long-term loans =_____________.
III 98 All those liabilities which are payable in cash in the normal cours
III 99 Low turnover of stock ratio indicates ________.
III 100 Mr. Piyush invested Rs.100 that grows to Rs.120 in 2 years. Wha
III 101 Shruti made a return of 15% on stock, however she has to pay 20% s

III 102 Real return is _______

III 103 A ________ is a an individual (or corporate fiduciary) who is speci
III 104  A trust that can’t be modified, amended or terminated without the beneficiary’s permission is ca
III 105 The grantor has control over the assets under _____ trust.
III 106 ___________ comes into effect only after death of the person maki
III 107 A minor can be made a benfeficiary in ____________
III 108 In the case of __________ trust the beneficiaries are definite and ascertained individuals.
III 109 If the Market Price per share of Jason Ltd is Rs.180 and the Earnin
III 110 If Cost of Goods sold is Rs. 2,50,000 and Average inventory is Rs
III 111 Calculate Current ratio , if Current Assets are Rs.3,00,000 and lia
III 112 Current assets excluding inventories and prepayments are known
III 113 ________ ratio indicates short term solvency position of a compan
III 114 The _________ is the person in charge of managing and investing Tr
IV 115 Under Public Provident Fund (PPF) Scheme an individual can open
IV 116 How many PPF accounts can an individual open in his/her name?
IV 117 What is the maturity period of Public Provident Fund (PPF) Sche
IV 118 An individual can open a PPF account with what amount?
IV 119 What is the minimum yearly investment in Public Provident Fund
IV 120 What is the maximum yearly investment in Public Provident Fund
IV 121 What is the maximum number of deposits that can be made in an
IV 122 In which year the PPF account can be prematurely close?
IV 123 Public Provident Fund (PPF) Scheme is fully backed by?
IV 124 Identify the false statement with respect to PPF scheme:
IV 125 Who Can open PPF account ? 
IV 126 Whether Interest on PPF a/c is exempted from Income Tax ?
IV 127 Interest rate on PPF is compounded ________
IV 128 Under NPS, how much corpus is taxable?
IV 129 National Pension System (NPS) in India is regulated by _______
IV 130 Which of the following is important part of NPS
IV 131 Which of the following is annuity service provider
IV 132 How many types of accounts are being offered by NPS
IV 133 PRAN stands for _______
IV 134 Government employees make a montlhly contribution at the rate of
IV 135 ________ accounts is voluntary account under NPS, which offers fl
IV 136 What is the maximum deposit allowed under Senior Citizen Savi
IV 137 Under which of the following phases of life cycle investment plann
IV 138 A systematic withdrawal plan is ideal for _____
IV 139 Which of the following is not a phase in retirement planning?
IV 140 What is the maximum deposit per year in Sukanya Samriddhi Yoja
IV 141 Sukanya Samriddhi Account can be opened for a girl child till the
IV 142 Investments made in Sukanya Samriddhi Yojana scheme are eligibl
IV 143 The following statements regarding National Pension System are t

IV 144 Which of the following factors does not necessarily support a lowe
IV 145 ________ is a retirement benefit applicable only to salaried emplo
IV 146 ________ is a contract between investor and an insurance company
IV 147 ________ is provided to reduce the impact of inflation.
IV 148 Investment in ________ is not a part of pre-retirement Strategy.
IV 149 Goals with a time frame of between one and five years are classif
IV 150 Creating a corpus for retirement is _________
 Option A Option B Option C
Buying a home Earning the maximum return Planning for retirement
Conservation phase Distribution phase Income phase
Gathering client data, including
Analyzing
goalsand evaluating current situation
Establishing
and needs
and defining client relationship
Gathering client data, including
Analyzing
goalsand evaluating current situation Monitoring
and needsand reviewing financial plan
Children’s future including education and marriage
Corpus for starting own business Buying a house
Income Expenses Estate
Income liabilities Assets
windfall gain accumulation distribution
Balanced curve Demand Curve Yield curve
Insurance Liquid investments Long Term Investment
Firms can afford higher interest paymentsCorporate bonds have higher risk They have longer maturities
lagging ; leading lagging ; coincident coincident ; leading
During times of expansion When a recession occurs During economic transitioning
hort-term bond interest rates
Short-term
equal long-term
bond interest
interest
rates
rates.
are
Long-term
greater than
bond
long-term
interest rates
bond are
interest
greater
rates.
than short-term bond interest r
predicting the future course ofpredicting
inflation. the future trends in international
predictingtrade.
the future course of interest rates.
The curve becomes flatter. the yield curve shifts down. The curve to be humped
The curve becomes flatter. the yield curve shifts down. The curve gets humped
Go Up Go down Remain unchanged
When a bank is in need of cash it caWhen a bank has excess cash, they It is rate at which RBI allows t
Increase the supply of money in th Decrease the supply of money inNo impact on the supply of mo
Repo rate reverse repo rate bank rate
Reserved Rate reverse repo rate Repo rate
A bank lends to public RBI lends to public Government of India lends to ot
Conflict of interest Confidentiality Professionalism
Competence Fairness Professionalism
Confidentiality Professionalism Competence
Compliance Due deligence Competence
Compliance Due deligence Competence
Fund Flow statement Net Worth Statement Cash Flow statement
flat upward sloping downward sloping
An indicator that can anticipate fut Delayed reporting of performancAn indicator that highlights pa
Lagging Leading co-incident
Lagging Leading co-incident
Lagging Leading co-incident
a leading variable a conincident variable a lagging variable
Lagging Leading co-incident
GDP Inflation retail sales
Contraction Expansion a trough
Liquidity risk Market Risk Horizon risk
Diversification Professional management Liquidity
Opend ended fund close ended fund sectoral fund
MF debt scheme MF liquid Fund Scheme MF short term fund scheme
Mutual Fund Merchant Bank Private Bank
Real estate Debt Equity
Debt Funds Equity Fund Indexed/Passive Fund
flexible asset allocation fixed asset allocation tactical asset allocation
1 & 3 only 1, 3 & 4 only 3 & 4 only
Real estate Equity Bonds
A unit linked insurance plan Money back policy Term insurance with a level p
Zone/Geography of operation of theInsured Declared Value (IDV) ofCubic capacity of the vehicle
Liquidity Time Horizon Capital Appreciation
Growth Stock Value Stock Defensive stock
Age Income Job security
Liquid investments Short Term Investment Long Term Investment
Tangiility Riskiness Liquidity
Investors age Family situation Food habits
2 months 4-6 months 7-9 months
Lower Fees Tax efficient Transperancy
Conservative Defensive Moderate
ULIP Endowment Term
Principle of insurable interest Principle of utmost good faith Principle of indemnity
Insuring existing losses Making false insurance claims Paying excessively for insuranc
are less volatile than stock Pay a higher return than stock are more readily available
Fairness Confidentiality Competence
Portfolio Management Credit Creation Amortized Management
Saving Account Current Account Term Deposit Account
to provide permanent
To provide a 100 days job to all tho employment to Tothe
ensure
unemployed
that all transactions above Rs.5000 are done through bank
Net Annual Value Non Asset Value Net Actual Value
Financial protection from rising
cost of hospitalisation Increase in the incidenceAccessof critical
to best
diseases
medical facilities without liquidatiing assets
tracking a benchmark lower transaction costs market timing
Retirement Fund Children's Education Fund Emergency Fund
Premium commission claim
Money Back plan Endowment Plan ULIP
PPF EPF Sukanya Samriddhi Scheme
Budgeting Planning Predicting
assets and income liabilities and expenses income and expenses
Peace of mind To avoid family disputes
To ensure the property passes to the intended person
A situation where will is inAitssituation
entir when a person dies without A situation
making when
will the will becomes effective
Capital Gains Gratuity Income from other sources
individuals and partnership firms individuals and HUF individuals only
Car loans Home Loans Personal loans
Tax Planning Estate Planning Retirement Planning
It is entirely tax free No probate required very simple
dying without a will dying after making a will dying without paying off liabili
Grantor, Trustee, Beneficiary Trustee, Trustor , Trusted Executor, Legatee, Testator
80D 80C 80G
 Tax Deducted at Statute Tax deducted at system Tax Deduction at strategy
80 C 80 D 80 E
Income from winnings from lotteriesIncome from crossword
Incomepuzzles
from business of owning and maintaining race horses
2 5 8
Only Short term capital gain Only long term capital gains Short and Long term capital gains
Only Short term capital gain Only long term capital gains Short and Long term capital gains
80 C 80 D 80 E
Cost of Sales Sales return Net Sales
Return on Investment Operating ratio Price Earning Ratio
Liquid Ratio Current Ratio Proprietary Ratio
Current Assets Current Liabilities Capital Employed
Non-current Liabilities Current Liabilities External Liabilities
Solvency position monopoly situation liquidity position
9.54% 20% 10%
14% 12% 13%
same as nominal return Tax adjusted return
Total return on investment
Grantor Beneficiary Trustee
Revocable Irrevocable Charitable
Revocable Irrevocable Charitable
Wills Trust Power of attorney
only wills only trust both trusts and wills
Private Public Religious
3.33% 33.33% 30 times
Rs.3,00,000 5 times 20%
3:1 2.14:1 1:3
Current Assets Fixed Assets Liquid Assets
Current Ratio Debt- Equity ratio Proprietary Ratio
Grantor Beneficiary Trustee
Spouse Parents Children
One Two Three
5 years 10 years 15 years
Rs.100 Rs.500 Rs.1000
Rs.100 Rs.250 Rs.500
Rs.1 lakh Rs.15 lakhs Rs.1.5 lakhs
1 12 6
6 7 10
Reserve Bank of India State Government SEBI
A minor can open PPF account NRI cannot open PPF account PPF provides tax benefits
Individual (Resident) Individual (non-resident) Partnership Firm
Yes (Partially) Yes (fully exempt) Fully taxable
Annually Monthly Quaterly
60% 40% 50%
SEBI AMFI PFRDA
Asset Allocation only Tax collection Fund Management only
 Life insurance companies Public sector banks Private sectors banks
one Two Three
Permanent Retirement Account Nu Permanent Retiree Account NumPermanent Recordkeeping Acc
20% 10% 5%
Tier I Tier II Swavalamban
Rs. 5 lakhs Rs.10 lakhs Rs. 15 lakhs
Accumulation Phase Conservation Phase Spending Phase.
Investors who wish to benefit from Investors who are not sure about Investors who prefer a regular
Accumulation Conservation Distribution
Rs.50,000 Rs.1,50,000 Rs.1,00,000
5 years 10 years 8 years
Rs. 1.5 Lakhs Rs.50,000 Rs. 1,00,000
tive Tier I account is a pre-requisite
There isfor
noopening
limit onTier
the number
II account
ofFunds
withdrawals
from Tier
fromI account
tier II account
can be transferred to Tier II account
Income generating assets other Regular income from working
than financial assets No liabilities post retirement post retirement
EPF PPF SCSS
Gratuity Annuity Fixed Deposit
Dearness Allowance HRA Travel Allowance
NPS PPF Mutual Fund
Short term goal Medium term goal Long term goal
Short term goal Medium term goal Long term goal
 Correct_
Option D Option
Saving for child's education B
Accumulation phase B
Implementing the recommendations A
Developing and present recommendation C
Comfortable Retirement B
Risk Tolerance D
Net worth C
transition C
Cash curve C
Investment in PPF B
Government bonds are inflation proof B
leading ; lagging D
ng-term interest rates are lower than short-term
A rates
y stocks provide greater yields than large
A company stock.
ediction the future policy actions of Cthe RBI
The curve becomes steeper. D
The curve becomes steeper. D
Multiplies B
 It is a rate which is offered
C by banks to their most valued customers or prime customers.
Initially increase the B
Prime lending rate C
Base rate D
RBI lends to commer D
Objectivity B
Due Diligence C
Due Diligence A
Confidentiality B
Confidentiality C
Statement of Assets C
humped A
An indicator that de C
concurrent B
concurrent A
concurrent B
a cyclical variable C
cyclical C
New order for plant D
a turning point A
Longevity risk A
Assured returns D
Equity Mutal Fund D
MF Equity scheme D
Stocker Broker A
 Gold D
Active Fund C
strategic asset D
1, 2, 3 & 4 D
Equity Mutal Fund C
Endowment policy C
Age of the owner of D
Risk Tolerance C
Cyclical Stock C
Market Movements D
Medium Term Invest C
Profitability A
Job Security C
12 months B
Higher than market r D
Aggressive A
Money Back A
Principle of risk miti C
Profiting from insur D
are hedge against inf A
Objectivity D
Risk Management A
Recurring Deposit A C

e banking services to all those livingDin remote areas

Net Asset Value D

proving longevity and better medicalDfacilities

Tax efficiency C
Fund for buying a ho C
brokerage A
Annuity Plan D
Fixed Deposits D
Fortune-telling A
net worth and incom C
To plan health care treatmentC
situation when the will becomes irrevocable
B
Income from salary D
all assessees B
Card Loans B
Investment Planning B
cost effective B
dying in a state othe A
Agent, Trustee, Excecutor A
80 A A
 Tax Deducted at source D
80 G C
Income from card game C
10 C
Any heads of income C
Any heads of income B
80 G A
Gross Sales C
Debt - Equity ratio A
Stock to Working Capital ratioB
Debt C
Contingent Liabilities B
over investment in inventory D
5% A
18% B
Inflation adjusted
D
return
Settlor C
Private B
Private A
Only Privilidged will A
neither trust nor wills C
Charitable A
30% C
Rs.2,00,000 B
7.5:1 A
Fictitious Assets C
Quick ratio A
Settlor C
Joint account is not D
No limit A
7 years C
Rs.5000 A
RS.1000 C
no limit C
No limit B
cannot be closed bef D
Central Government D
Maturity of PPF acco D
HUF A
Exempt upto a limit B
Half yearly B
20% A
RBI C
Asset Allocation an D
 NBFCs A
Four B
Pension Receipt Ac A
15% B
Tier III B
Rs.20 lakhs C
Gifting phase B
Investors who have C
Deflation D
Rs.1,20,000 B
15 years B
Rs.75,000 A
ccumulated in Tier I should be used C
for purchasing annuity
Higher than
expected inflation D
NPS A
PPF B
Entertainment Allowance A
SCSS D
unrealistic goal B
unrealistic goal C