MST 1 (2022)

Financial planning and Wealth Management

Total Time: 40 mins Total Marks: 20 Marks

● Each section is compulsory, try to attempt all.
● The question paper has 3 sections. All sections are compulsory.
Section 1
● This section consists of Multiple Choices questions
● Answer all the questions (1 X 10= 10 Marks)

1. Capital markets denote the places where funds are swapped between
a) suppliers of capital
b) Borrower of capital
c) Those who request capital investments.
d) Both (a) & (b)

2. The capital market in India is controlled by-

a) SEBI b) IRDA c) RBI d) ICRA

3. ____________ is also called zero coupon bond.

(a) Trade bills (b) Call money (c) Treasury bills (d) Commercial papers

4. Stock exchange is known as __________ market for securities.

(a) Primary market (b) Secondary market (c) Capital market (d) None of the above

5. Which of the following statements is not true with regard to money market?
(a) It involves low market risk.
(b) It is situated at specific locations.
(c) Deals in unsecured and short-term debt instruments.
(d) The instruments traded are highly liquid.

6. The Full form of UHNW IS_________

a) High net worth customers b) Huge net worth customers c)None of the above d)Heavy net worth customers

7. The statement of cash flow clarifies cash flows according to

A) Operating and Non-operating Flows
B) Inflow and Outflow
C) Investing and Non-operating Flows
D) Operating, Investing, and Financing Activities
8. Which item comes under financial activities in cash flow?
A) Redemption of Preference Share
B) Issue of Preference Share
C) Interest Paid
D) All the above

9. Cash equivalent includes______________

a) Stock b) debtors c) Cash d)None of the above

10. Wealth management is a ____________process
a) Advisory b) Consultative
C) Customized d) All of the above

Section 2
Short Answer Type Questions

This section carries short answer questions, answer any 2 out of 3 (2 X 2=4 Marks)
1. Write the difference between Money and Capital market instruments.
2. Write about the components of Wealth management.
3. Write about the methods to improve and maximize cash flows of an organization.

Section 3
This section carries Case Study/ Numerical questions (1X 6 = 6 Marks)

1. Snehil worked as a senior manager in Pearl Ltd. And earns a salary of Rs.70,000 monthly. She is single
and planning to get married in the upcoming month of January,2023. She has past saving worth Rs. 10
lakhs and has inherited net assets worth Rs.20 lakhs.
You are Aviraj, her financial planner, Create a financial plan that will suit her requirements based upon her
current status and financial planning process analysis.

2. After doing a course in online trading, Abhimanyu started an online portal for stock trading under the name

‘Investment Time’. His wife was going to a bank for opening a Demat account. Abhimanu urged his wife
to invest in the forthcoming IPO of a blue chip companies whereas his wife was inclined to buy existing
securities of the other companies to build her investment portfolio.
1. Identify the two different types of capital market being referred to in the above case.
2. State any 6 differences between the two different types of capital markets.