TBE Set 3 English

TBE
Sample Questions
Set 3
English

Part A & C

Name :
Date :

Score
Part A : /50
Part C : /50

1
TBE Set 3 English

PART A : 50 Questions

CHAPTER A1
Q1
Riba that arises from buying and selling of ribawi material refers to ________
a) Riba Interest
b) RIba Fuyu’
c) Riba Qusudh
d) Riba Buyu’

Q2
A contract, according to Shariah is void if the_______
a) Contract is agreed without any witness
b) Contract satisfies the necessary conditions
c) Contract contains major uncertainty (gharar)
d) Contract is done without coercion

Q3
Which of the following major Shariah School of Thoughts are of unanimous decisions that all forms of
business transactions that contain the element of riba (interest), gharar (uncertainty) and maisir
(gambling) are considered invalid?
a) Shiah, Hanafi, Hanbali and Maliki
b) Hanafi, Maliki, Shafii and Hanbali
c) Shafii, Salafi, Zahiri and Maliki
d) Shiah, Shafii, Zahiri and Maliki

Q4
The TWO (2) major classifications of riba are_________
a) Riba Buyu’ and Riba Sahih
b) Riba Wahyu and Riba Soleh
c) Riba Duyun and Riba Buyu’
d) Riba Sufi and Riba Dai’

Q5
Since conventional insurance as it is being practiced now did not exist during the Prophet’s (PBUH) time,
what is the method in determining the rule used by Muslim jurists to establish whether it is permissible
or otherwise?
a) Uruf
b) Darurah
c) Mushawarah
d) Ijtihad

2
TBE Set 3 English

Q6
Which of the following contracts are used by Malaysian takaful operators?
I. Wakalah
II. Mudharabah
III. Musharakah
IV. Waqf
a) I
b) I and II
c) I, II and III
d) All of the above

Q7
________ means a unanimous agreement among the Islamic jurists of a Muslim community on any
Shariah ruling in a particular period following the demise of the Prophet Muhammad (PBUH).
a) Quran
b) Sunnah
c) Ijma’
d) Qiyas

CHAPTER A2
Q1
Which of the following examples are perils?
I. Forest fires
II. Earthquake
III. Collision
IV. Overloading
a) I and II
b) I and III
c) I, II and III
d) All of the above

Q2
Which of the following category is not the type of pure risk?
a) Personal
b) Property
c) Hazard
d) Liability

Q3
Which of the following statement is INCORRECT about the categories of risk?
a) Particular risks are the responsibility of the individuals themselves
b) Pure risk exists when there is the possibility of either loss or break even

3
TBE Set 3 English

c) Investment in the stock market is considered as speculative risk

d) Fundamental and speculative risks can easily be handled by insurance/Takaful

Q4
Which of the following is not a hazard?
a) Driving a modified car
b) Placing fire extinguishers in a building
c) Smoking at a petrol station
d) Defective wiring in a building

Q5
The risk management process involves:
I. Identifying potential losses
II. Developing risk management plan
III. Implementing the risk management program
IV. Evaluating potential losses
a) I and II
b) I and III
c) II, III and IV
d) All of the above

CHAPTER A3
Q1
All of the following statements are TRUE regarding the concept of takaful EXCEPT:
a) It is a scheme of sharing the investment profit with the participants
b) It is a neans of pooling fund from the participating members so that losses suffered by any of the
member may be indemnified
c) It based on the concept of mutual help and solidarity
d) It is a scheme that will benefit takaful operators and retakaful operators

Q2
The assignment of responsibility held by one person (muwakkil) to the other person (wakil) with certain
utterance is________
a) Hibah
b) Aqad
c) Wakalah
d) Tabarru’

Q3
What is the basic concept of ‘Ta’awun?
a) Forgiving towards one another
b) Giving information to one another

4
TBE Set 3 English

c) Cooperation with one another

d) Loving one another

Q4
Wakalah fee is payable from the________
a) Technical reserve account set aside by a takaful operator
b) Shareholders’ fund
c) Surplus from the investment of the fund
d) Takaful contributions paid by the participant

CHAPTER A4
Q1
The main purpose of insurance is to:
I. Provide financial protection against a loss
II. Provide financial freedom to community
III. Boost the community’s economy
IV. Maximize the shareholders return in a company

a) I, II and III
b) I, II and IV
c) II, III and IV
d) All of the above

Q2
The national fatwa committee in its meeting during the 70’s had decreed that this type of insurance
carried out by insurance company is a voidable business transaction (muamalat). The type of insurance
mentioned is _________

a) Motor Insurance
b) Personal Accident Insurance
c) Property Insurance
d) Life Insurance

Q3
Who is the first takaful operator in Malaysia?
a) Etiqa
b) Takaful Nasional
c) Takaful Ikhlas
d) Syarikat Takaful Malaysia

5
TBE Set 3 English

Q4
Below are the prohibited elements in Insurance, EXCEPT:

a) Gharar
b) Maaqud A’lai
c) Maisir
d) Riba

Q5
Below are types of Gharar, EXCEPT

a) Gharar Kathir
b) Gharar Yasir
c) Gharar Mutawassit
d) Gharar Mutasitah

CHAPTER A5
Q1
Legal principles in Takaful contract are:
I. Insurable Interest
II. Indemnity
III. Proximate Cause
IV. Tabarru’
a) I and II
b) I, II and III
c) II, III and IV
d) All of the above

Q2
In order to be covered by takaful, insurable interest must satisfy the following conditions:
I. Capable to be measured or valued financially
II. Financial loss suffered arising from legal liability
III. Contractual right whereby one party is financially responsible for any loss or damage to the
property and third party liability
IV. Financial relationship recognized at law between the participant and the subject matter of
takaful
a) I, II and III
b) I, III and IV
c) II, III and IV
d) All of the above

6
TBE Set 3 English

Q3
Which of the following statement does not constitute a breach of Utmost Good Faith?
a) Non-disclosure of material facts
b) Deliberate concealment of facts
c) Fraudulent misrepresentation
d) Claim for a covered term

Q4
Which of the following statement is NOT an essential condition for the principle of contribution?
a) The certificates must cover a common interest
b) The certificates must involve a common subject matter
c) Two (2) or more certificates covering different participants
d) The certificates must cover a common peril that gave rise to the loss

Q5
Warranties in takaful contracts can be divided into two types:
a) Defective and Confirmative
b) Affirmative and Promissory
c) Guarantee and Replacement
d) Actual and Solid

Q6
The capital provider under the contract of Mudharabah in Takaful context is______
a) Takaful operator
b) Takaful participant
c) Takaful Agent
d) Takaful owner

CHAPTER A6
Q1
What are the objectives of the Bank Negara Malaysia Shariah Advisory Council?
a) Harmonise the Shariah interpretations, strengthen the regulatory and supervisory aspects, and
oversee the industry and foster a pool of competent Shariah advisors
b) Prepare legal documentations for Islamic financial Institutions that conform to Shariah
c) Advise on policy matters and federal reserve
d) Ensure that Takaful operators maximize their profits

Q2
The objective of self-regulation includes:
a) To introduce statutory regulations to discipline the industry.
b) To put in place measures that does not respond quickly to changing needs.
c) To implement codes of practice that has the power of law

7
TBE Set 3 English

d) To instill higher level of cooperation and uniformity in practices in the industry.

Q3
If a takaful operator does not admit liability for coverage, any dispute over the claim can be referred to
a_______
a) Broker
b) Mediator
c) Loss adjuster
d) Loss assessor

Q4
Which of the following organization is NOT a standard-setting body regulating takaful business?
a) Islamic Development Bank (IDB)
b) Bank Negara Malaysia (BNM)
c) Islamic Financial Services Board (IFSB)
d) Accounting and Auditing of Islamic Financial Institutions (AAOFI)

Q5
Below are the objectives of the establishment of Islamic insurance industry association:
I. Promote the foundation of a sound takaful structure in Malaysia
II. Represent the interests of its members by all means and methods
III. Render to members when possible, necessary advice or assistance
IV. Conduct internal audit exercise on the operations of its members.

Which of the above objectives are the prominent roles of Malaysian Takaful Association (MTA)?
a) I, II and III
b) I, II and IV
c) I, III and IV
d) II, III and IV

CHAPTER A7
Q1
Which of the following statement is NOT a fundamental of retakaful?
a) Retakaful is an Islamic alternative to conventional reinsurance based on Shariah compliant approved
concept of reinsurance
b) Retakaful is a risk management tool used by takaful participant to transfer some of their covered
risks to other third parties
c) Retakaful is a form of takaful and its contract is legally a takaful contract
d) The primary objective of retakaful is to reduce the risk exposure and liability of the cedant in the
event of a claim

8
TBE Set 3 English

Q2
A takaful operator can take full advantages of the law of large numbers. They are able to manage high
severity, low frequency risk in its property account by implementing a retakaful program of ________
a) Loss prevention
b) Loss transfer
c) Risk retention
d) Risk sharing

Q3
The relationship between retakaful and takaful operator lies on the following principle, EXCEPT:
a) The original participant has no rights against the retakaful company whatever the circumstances.
b) If the retakaful company becomes insolvent, the ceding company is not liable to its participant
under the terms of the contract.
c) If the ceding company becomes insolvent, the retakaful company is still liable under the terms of his
contract.
d) The retakaful company has no contractual rights against any wrong doing of the original participant

Q4
Essentially the main benefits of retakaful are:
I. Risk spreading especially protection against catastrophe.
II. Financial advantage through leveraging
III. Financial stability
IV. Capacity boosting
a) I and II
b) I, II and III
c) I, III and IV
d) All of the above

CHAPTER A8
Q1
A takaful intermediary is someone who______
a) Invites potential customers to enter into takaful contracts with takaful operators
b) Invites potential customers to enter into takaful contracts with retakaful operators
c) Invites potential customers to enter into takaful contracts with insurance companies
d) Invites potential customers to enter into takaful contracts with takaful brokers

Q2
Which of the following job description is NOT one of the duties of an agent?
a) Making appropriate coverage recommendations to prospective customers
b) Writing the provisions of a customer’s certificate document
c) Helping prospective customers complete the application
d) Assuring that customers understand the coverage they are participating

9
TBE Set 3 English

Q3
A takaful Agent who promotes both family and general takaful products can represent how many
principal?
a) One family takaful and a maximum of two general takaful operators.
b) One general takaful and a maximum of two family takaful operators.
c) A maximum of two family takaful and general takaful operators.
d) One family takaful and one general takaful operator

CHAPTER A9
Q1
The scope of Guideline on Medical and Health Takaful Business covers the following statement EXCEPT:
a) Underwriting of takaful Certificates
b) Benefit limitations that may be applied
c) Rating on retakaful program
d) Pricing and reserving policies

Q2
Takaful operators who launch new medical and health takaful products must lodge the actuarial
certificate for the products with Bank Negara Malaysia at least______before the products are offered.
a) 31 days
b) 30 days
c) 60 days
d) 90 days

Q3
What is the Objective of Guidelines on Unfair practices in takaful business?
a) To strengthen the market conduct regulations in order to promote fair treatment to customers
b) To strengthen the market conduct regulations in order to make sure profitability of the takaful
operator
c) To make sure the efficiency of the Third Party Administrator’s operation
d) To make sure the medical provider receive a fair treatment

Q4
What is the overall annual limit?
a) The amount of allowance claimable by the participant
b) The maximum amount of benefits available to a participant per disability i.e. per admission to the
hospital
c) The maximum amount of benefits available to a participant according to number of days admitted
to hospital
d) The maximum amount of benefits available to a participant in any one certificate year

10
TBE Set 3 English

Q5
What is the role of the Third Party Administrators in the Medical and Health Takaful?
a) The representatives of the Takaful operator who are responsible for setting the claims both
reimbursement claims as well as cashless claims
b) The representatives of the Panel Hospitals who are responsible for admission and discharge of the
patients
c) The representatives of the Takaful Operator who are responsible for issuance of the certificate and
medical card
d) The representatives of the Panel Hospitals who are responsible for setting the claims both
reimbursement claims as well as cashless claims

CHAPTER A10
Q1
Conventionally, Medical and Health Takaful products are normally marketed as_______
a) Individual or group certificates
b) Term or multiple certificates
c) Cashless or group certificates
d) Multiple or direct mail certificates

Q2
Contribution for a group plan Medical and Health Takaful is calculated based on the following factor,
EXCEPT:
a) The characteristics of the group as a whole
b) Average age of the group
c) The larger the group, the lower the contribution amount
d) Degree of occupational hazard

Q3
Some takaful operators may extend their Medical Expenses Takaful certificate to cover the following
conditions, EXCEPT
a) Outpatient treatment
b) Dental expenses
c) Maternity expenses
d) Cosmetic surgery

Q4
The TWO (2) types of Group Medical and Health Takaful Plan are:
a) Loading basis and non-loading basis
b) Excess takaful basis and co-takaful basis
c) Contributory basis and non-contributory basis
d) Medical expenses basis and surgical expenses basis

11
TBE Set 3 English

CHAPTER A11
Q1
A medical and Health takaful certificate is considered lapsed if______
a) Payment of contribution is made during the grace period
b) No payment of contribution is made before the end of the grace period
c) Payment of contribution is made through a takaful agent
d) Participant would like to switch to other certificate

CHAPTER 13
Q1
After completes preliminary checking on claims and found that the claim is valid, what is the next step
by claims department?

a) Appoint adjuster
b) Claims department will call hospital to get further information
c) Claim form will be given to claimant
d) Claims department will request medical report from Third Party Administrator

12
TBE Set 3 English

PART C : 50 Questions

CHAPTER C1
Q1
Which of the following takaful certificate is not a contract of indemnity?
a) A fire takaful certificate
b) A motor takaful certificate
c) An engineering takaful certificate
d) A family takaful certificate

CHAPTER C2
Q1
Which of the following is NOT a type of Family takaful protection?
a) Individual Protection Plan
b) Mortgage Protection Plan
c) Annuity Plan
d) Property Protection Plan

Q2
The coverage provided by the group takaful department of Family Takaful Operator does NOT include
the following:
a) Group Term Family
b) Group Personal Accident
c) Group Householders
d) Group Credit Takaful

Q3
Which of the following is CORRECT regarding Children Education Takaful Plan?
I. A plan which provides protection and long-term savings to finance a child’s higher education
expenses.
II. The child will avail funds required for his higher education upon maturity of the certificate
III. Parents participating in the plan will be eligible for personal tax relief up to RM 6,000 per year
IV. The child will be provided with the financial benefits in the event the payor suffers a setback
covered under the plan
a) I, II and III
b) I, II and IV
c) II, III and IV
d) All of the above

13
TBE Set 3 English

Q4
Which of the following offers takaful protection to prevent the loss of the home in the event of the
death of the principal wage earner?
a) Mortgage Reducing Term Takaful
b) Financing Takaful
c) Education Takaful
d) Houseowner Takaful

Q5
Which of the following statements is an INCORRECT description of a Family Takaful Certificate?
a) A family certificate that offers takaful protection for a limited period is called term takaful
b) A child education plan is for protection only
c) A certificate that offers protection cum investment is called investment-linked takaful
d) In a participating family takaful certificate, the benefits received are higher as the certificates
receive profits/surplus from the fund

CHAPTER C3
Q1
The transfer of legal rights under Family Takaful is called:
a) A trust certificate
b) A legal certificate
c) An assignment
d) A free certificate

Q2
Which of the following is INCORRECT about the assignment of a family certificate?
a) Two types of assignments are absolute assignment and conditional assignment
b) Assignment should be made in writing
c) An assignment should be validated by a takaful agent
d) An assignment is a transfer of rights and liabilities by one person to another

Q3
Endorsement may be made on any takaful certificate arising from the following event EXCEPT:
a) Increase or decrease in the amount of takaful instalment or contribution
b) Change in the period of takaful
c) Any supplementary benefit participated
d) In the event a acclaim is submitted

Q4
A certificate under which the surrender value is used as a single contribution to provide for an assurance
on the original terms, but for a reduced sum assured is known as:\
a) An extended certificate

14
TBE Set 3 English

b) A paid-up certificate
c) A term certificate
d) A fees certificate

Q5
A lapsed certificate may be reinstated provided that there is
I. Evidence of continued good health
II. Payment of outstanding contributions
III. Settlement of maturity claim
IV. Validation by the servicing takaful agent
a) I and II
b) I and III
c) I, II and III
d) II and IV

Q6
Which of the following is a restrictive condition that appears in the certificate document?
a) Suicide
b) Days of grace
c) Cash surrender
d) Revival of lapsed certificates

Q7
Family takaful certificates contain all the following EXCEPT:
a) Amount of claim which has been paid
b) Description of cover
c) Conditions
d) exclusions

CHAPTER C4
Q1
Which of the following is NOT a factor in determining contributions charged for Family Takaful
Certificates?
a) The age and gender of the proposer.
b) The current state of health of proposer.
c) The type of certificate required.
d) The occupation of the proposer.

Q2
For Family Takaful Contracts, the mortality risk ________with age and hence with the duration of the
contract.
a) Decreases

15
TBE Set 3 English

b) Increases
c) Diminishes
d) Enhances

Q3
Which of the following is not an allowable deduction in respect of income tax for gainfully employed
individuals?
a) Contributions to EPF
b) Family takaful contribution
c) Dependent children’s support
d) Personal medical bills

Q4
When underwriting a proposal, a person who is overweight (obesity) must be treated with caution as he
is most likely to suffer from the following EXCEPT:
a) Heart disease
b) Hypertension
c) Diabetes
d) Fever

Q5
Extra risks in Family Takaful are classified generally into the following groups, EXCEPT:
a) Increasing extra Mortality
b) Contribution extra Mortality
c) Level Extra Mortality
d) Decreasing Extra Mortality

Q6
Which of the following is NOT considered initial expenses for Family Takaful Certificate?
a) Advertising costs
b) Medical examination expenses
c) Certificate issue expenses
d) Expenses of servicing the certificate

Q7
Renewal expenses are expenses normally incurred every year throughout the duration of the Family
Takaful certificate which include the following expenses:
I. Renewal commissions
II. Expenses of collecting the contributions
III. Expenses of servicing the certificate
IV. Claims payment expenses
a) I, II and III

16
TBE Set 3 English

b) I, III and IV
c) II, III and IV
d) All of the above

CHAPTER C5
Q1
Which is not the reason for valuation of liabilities of a family takaful operator?
a) To test whether the takaful operator and the funds under its management are solvent
b) To determine the amount of surplus that is available for profit-sharing between the shareholders
and takaful operators
c) To test the adequacy of the existing contribution scales
d) To determine if any changes in the takaful operator’s operations are necessary

Q2
What is the requirement for the insurer under the Risk Based Capital Framework?
a) To compute its Capital Adequacy Ratio (CAR)
b) To submit a report on the status of its CAR to Bank Negara Malaysia
c) To appoint an external Auditor to prepare a report on its CAR
d) To develop a system to monitor its CAR

Q3
What is surplus of the fund?
a) The difference between the value placed on the assets and the value of the liabilities
b) The profit of the risk fund
c) The difference between the income and expenses of the risk fund
d) The difference of value between the beginning and the end of the year.

Q4
One way of valuing an asset is through ‘book value’ which means the:
a) Value of books at a takaful operator’s resource centre
b) Value for which the assets can be sold in the open market
c) Price at which the asset was acquired
d) Value placed on the assets in the takaful operator’s book of accounts

CHAPTER C6
Q1
Information necessary for the proper assessment of risk could be obtained from the following sources
EXCEPT:
a) Agent’s report
b) Proposal form
c) Police report
d) Medical report

17
TBE Set 3 English

Q2
Failure for the certificate documents to be lodged with Bank Negara Malaysia (BNM) may result in
Takaful Operators being fined up to ________on each occasion.

a) RM 1,000
b) RM 4,000
c) RM 5,000
d) RM 10,000

Q3
Which of the following is NOT information to be completed by the applicant in a family takaful proposal
form?
a) List of preferred clinics and hospitals
b) Personal particulars
c) Personal and family history
d) Details of cover

Q4
A process of assessment and selection of risks, and the determination of contribution payment, terms
and conditions is called_________
a) Underwriting
b) Marketing
c) Claim
d) Policy servicing

CHAPTER C7
Q1
Who is eligible to receive benefits from the Family Takaful certificate?
a) Participant’s friends
b) Participant or legal heir/beneficiaries
c) Participant’s in-laws
d) Participant’s niece and nephew

Q2
Who is entitled to make a claim in the event of death of the participant?
a) The person who originally effected the certificate
b) A trustee
c) A good friend of the deceased
d) All of the above

18
TBE Set 3 English

Q3
What is the purpose of having a claim register?
a) To record the surplus attributed to the participant
b) To serve as an official claims notified to takaful operator
c) To fulfill the requirement under Central Bank Act
d) For takaful operator self-satisfaction

Q4
The following documents are required for a total permanent disability claim due to accidents EXCEPT:
a) The completed claim form
b) A certified true copy of the police report
c) Medical certification by the attending doctor
d) A death certificate

Q5
The Payment of Takaful benefits at maturity shall be made from
I. The total amount of takaful installments paid by the participant from the date of entry to the last
due date as specified in the certificate
II. The amount of profits generated from the investment of installments in Participants’ Accounts
III. The sharing of surplus from the investment of Shareholders’ Fund
IV. The total amount surplus allocated based on the actuarial valuation of the Participants’ Special
Accounts.
a) I, II and III
b) I and II
c) I, II and III
d) II and IV

Q6
Before paying the maturity benefit under a saving takaful, the takaful operator requires the following
basic proof, EXCEPT:
a) Proof of age of the participant
b) Proof of death of the participant
c) Identity of the person entitled to the certificate moneys
d) Proof of survival

Q7
Which of the following is NOT required for settling a maturity claim when the certificate holder is the
participant?
a) Proof of age
b) Proof of survival
c) Death certificate
d) Certificate document

19
TBE Set 3 English

Q8
Partial withdrawal is allowable from_______
a) Participant’s Account
b) Participant’s Special Account
c) Shareholder’s Fund
d) Contingency Fund

CHAPTER C8
Q1
If the participant was born on 21st March 1965 and the date of the proposal submitted was 1 January
1998 what would be his age last birthday?
a) 31 years old
b) 32 years old
c) 33 years old
d) 30 years old

Q2
When surrender values are not pre-determined, the calculation of such values requires consideration
by__________
a) Finance
b) Actuarial
c) Investment
d) Channel Administration

CHAPTER C9
Q1
Which of the following is NOT a factor to be taken into consideration?
a) Investment objective
b) The cheapest plan
c) Availability of fund
d) Investment horizon

Q2
_______refers to the total length of time that an investor expects to hold a security or portfolio.
a) Diversification
b) Investment Horizon
c) Investment equities
d) Medium term trading

20
TBE Set 3 English

Q3
Investment-linked funds offer the certificate owner an access to what kind of investment?
a) Diversified portfolio of speculation
b) Guaranteed return of investment
c) Diversified portfolio of investment
d) High return on investment

CHAPTER C10
Q1
The takaful funds will be invested in the following instruments:
I. Government Investment Issue
II. Government Sukuk
III. Shareholders’ fund
IV. General Investment Account
a) I, II and III
b) I, II and IV
c) II, III and IV
d) All of the above

Q2
Which of the following statements regarding preference shares and ordinary shares is CORRECT?
a) Preference shares are more secure than ordinary shares but less profitable
b) Ordinary shares are more secure than preference shares but less profitable
c) Preference shares are more secure than ordinary shares and more profitable
d) Ordinary shares are more secure than preference shares and more profitable

Q3
Investors have the right, not an obligation, to purchase or sell the security at a future date, this is
called_____
a) A call option
b) A put option
c) A special option
d) An option

Q4
Ahmad is a very cautious investor. He is looking for a steady income and hopes to safeguard his
principal. What should he invest in?
I. Government and Corporate Sukuk
II. General Investment Account (GIA)
III. Cash funds
IV. Specialized funds
a) I, II and III

21
TBE Set 3 English

b) I, II and IV
c) I, III and IV
d) II, III and IV

Q5
The investment instruments that a takaful operator can participate in are
I. Sukuk
II. Shariah-Approved Securities
III. Interest bearing bond
IV. Mudharabah general investment account
a) I and II
b) I, II and III
c) I, II and IV
d) II and III

CHAPTER C11
Q1
A growth fund is a portfolio that is structured to provide:
a) A maximum income
b) A combination of capital appreciation and income
c) Protection
d) Capital appreciation

Q2
A property fund is a fund that________
a) Is structured to provide growth i.e. capital appreciation
b) Is structured to provide maximum income
c) Is structured to provide a combination of capital appreciation and income
d) Holds portfolios of real estate and real estate related financial instruments for the benefit of the
investment

Q3
A Balance Fund is a fund that is structured to:
a) Provide growth i.e. capital appreciation
b) Provide maximum income
c) Provide a combination of capital appreciation and income
d) Invest in property

CHAPTER C12
Q1
Which of the following are the risks of investment in investment linked funds?
I. Market risk

22
TBE Set 3 English

II. Liquidity risk

III. Currency risk
IV. Country risk
a) I and III
b) I, II and III
c) I, II and IV
d) All of the above

23
TBE Set 3 English

ANSWER

PART A
Chapter A1 Chapter A2 Chapter A3 Chapter A4
1 D 1 C 1 D 1 D
2 C 2 C 2 C 2 D
3 B 3 D 3 C 3 D
4 C 4 B 4 D 4 B
5 C 5 D 5 D
6 C
7 C

Chapter A5 Chapter A6 Chapter A7 Chapter A8

1 D 1 A 1 B 1 A
2 D 2 D 2 B 2 B
3 D 3 B 3 B 3 A
4 C 4 A 4 D
5 B 5 C
6 B

Chapter A9 Chapter A10 Chapter A11 Chapter A13

1 C 1 A 1 B 1 C
2 B 2 C
3 A 3 D
4 D 4 C
5 A

24
TBE Set 3 English

ANSWER: PART C

Chapter C1 Chapter C2 Chapter C3 Chapter C4

1 D 1 D 1 C 1 C
2 C 2 C 2 B
3 B 3 B 3 D
4 A 4 B 4 D
5 B 5 A 5 B
6 A 6 D
7 A 7 A

Chapter C5 Chapter C6 Chapter C7 Chapter C8

1 B 1 C 1 B 1 B
2 A 2 B 2 A 2 B
3 A 3 A 3 B
4 D 4 A 4 D
5 C
6 B
7 A
8 A

Chapter C9 Chapter C10 Chapter C11 Chapter C12

1 B 1 B 1 D 1 D
2 B 2 A 2 D
3 C 3 D 3 C
4 A
5 C

25