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1. Which of the following is a financial goal?
Rs.6 lakhs required for sister�s wedding
A sizable sum needed to buy a new car in two years time
Rs. 10 lakhs needed for purchasing a flat
Rs.5 lakhs needed after two years to pay child�s tuition fees
2. Mr. Khanna requires Rs.10 lakhs in six months time to pay his son�s admission
fees. An appropriate investment to set aside money for his goal would be
Equity shares of high-growth companies
Real estate
Short term debt fund
Long term corporate bond
3. Jaya needs Rs.5 lakhs urgently for an emergency medical procedure. Which
investment is she most likely to tap?
Shares of Hindalco Ltd
Bank deposit
Gold jewellery
5-year bonds of a finance company
4. A conservative investor wants to accumulate Rs.20 lakhs in 3 years time. What
would be an appropriate investment option for him?
Shares of selected growth companies
Bank deposits and good quality bonds
Property
Gold funds
5. Investment A appreciates in value by 20% after one year. Investment B
appreciates by 40% after three years. Which gives a higher return?
Investment B, because it has a higher absolute return
Investment A, because it can be exited after just one year
Investment B, because it has a higher holding period
Investment A, because it has a higher annualized return
6. The concept of time value of money implies that
Money should be invested immediately without wasting time
Due to inflation, money has a lower purchasing value in future
The timing of investment influences final returns
Current cash inflows can be re-invested to earn a return that increases future
value
7. An investor in mutual funds typically enters the fund at a certain value, and
exits at another value after a specified holding period. The appropriate measure to
assess his return is
Absolute return
Annualized return
Holding Period Return
IRR
 8. An investment in 7% tax free bonds is compared with an investment in a 9% bank
deposit where interest is taxable. Both have a one year investment horizon. Which
of the following is true?
The bond interest is tax free so it is better
For an investor who is not taxable, the bank deposit offers a better return
For an investor with a 30% tax rate, the bank deposit gives higher post tax return
For an investor with a 10% tax rate, the bank deposit gives lower post-tax return
9. A retired person is depending on a monthly annuity income to finance his
expenses. The greatest risk faced by his cash flows is
Business risk
Exchange rate risk
Interest rate risk
Inflation risk
10. Investment in a government security issued at a fixed interest rate is subject
to
Credit risk
Business risk
Interest rate risk
Liquidity risk
11. An investor purchases equity shares of a cement manufacturing company. The
returns from his investment do not face
Interest rate risk
Credit risk
Business risk
Inflation risk
12. An investor holds a large portfolio of shares from different companies and
industries. Her portfolio is likely to be protected from
Credit risk
Inflation risk
Liquidity risk
Unsystematic risk
13. Interest on a NSC
Is paid out annually
Is compounded and paid out quarterly
Is accumulated and paid at the end of the term
14. Which of the following instruments under Section 80C enjoys an EEE status?
ELSS
PPF
SCSS
15. FMPs achieve lower mark-to-market risk by investing in
shorter term securities that mature before the tenor of the fund
floating rate securities with reset tenor less than six months
securities whose maturity matches that of the fund
16. Short term debt funds carry
High mark to market risk
Low mark-to-market risk
No mark-to-market risk
17. Which of these asset classes is most likely to meet the objective of
generating regular income?
Equity
Cash and equivalents
Debt
18. Which of these asset classes is primarily used to meet regular needs for
liquid cash?
Debt
Cash and equivalents
Equity
19. The long term goal of an investor is to build a corpus that is adequate to
serve his income needs after retirement. The portfolio when constructed, should
have a higher allocation to
Debt
Cash equivalents
Equity
20. An investor who seeks a high level of return and is willing to bear the risks
of such investments is likely to be recommended
Aggressive portfolio
Conservative portfolio
Moderate portfolio
21. Which of the following products is a pure insurance product?
ULIP
Money back policy
Term insurance policy
Whole life policy
22. In which of the following situations will the insured not have insurance
cover?
Surrendered policy
Paid-up policy
Term policy
Both (a) and (b)
23. The premium payable on a ULIP is higher for the same sum assured as a term
policy because
The period of cover is shorter
A portion of the premium is used for investment
The pool of insured is smaller
The risk is higher
24. The term of insurance in non-life insurance is typically
Decided by the insured
Decided based on sum insured
One year
Flexible
25. Growth-oriented investments are suitable for which stage of retirement
savings?
Accumulation stage
Distribution stage
Income stage
Investment stage
26. Inflation does which of the following to retirement planning?
Reduces the periodic savings required
Reduces the return generated by an investment
Increases the retirement corpus required
Increases the value of the corpus created
27. The retirement corpus may require review
Every year
Every time there is a significant change in financial situation
Closer to the distribution period
Not at all
28. Which of the following is a solution to manage inadequacy of retirement corpus
closer to retirement?
Invest in riskier assets
Postpone retirement
Reduce periodic savings
Increase corpus target
29. Commission received from business forms part of income from ___________.
Business and profession
Capital Gains
Salary
Other sources
30. Long term capital gain from sale of shares is ____________________.
Taxed at 10%
Exempt from tax
Taxed at 20%
Taxed at 15% with indexation
31. The Rajiv Gandhi Equity Savings Scheme, 2012 allows exemption up to _______
for investments made in eligible securities up to Rs. 50,000.
100%
50%
40%
60%
32. For a person to be qualified as a NRI, he must have stayed outside India for a
minimum period of _____ days in a previous financial year.
365
280
182
150
33. Which of the following persons is expected to comply with registration
requirement under SEBI (Investment Advisers) Regulations, 2013:
Fund Manager of an AMC
A distributor of a mutual fund who only receives commission from the AMC.
An IFA who charges advisory fees to investors
A Chartered Accountant practicing his profession
34. The minimum tangible assets to be maintained by an individual investment
adviser are Rs. _______.
1 lac
25 lacs
5 lacs
10 lacs
35. Registration and regulation of securities market intermediaries is the
function of _____.
AMFI
SEBI
PFRDA
SRO
36. A person who has a complaint against an insurance company must lodge his
complaint with___.
SCORES
IGMS
CGMS
RBI
Your question here...