2/10/2020 Unit Test - 9

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Started on Monday, 10 February 2020, 10:06 PM

State Finished
Completed on Monday, 10 February 2020, 10:18 PM
Time taken 11 mins 58 secs
Marks 24.00/37.00
Grade 6.49 out of 10.00 (65%)

Question 1 "Mens Rea" refers to committing an act

Complete

Mark 1.00 out of Select one:

1.00
a. Which was committed with good intentions but which ended up
hurting someone

b. Which is not illegal as per the law of the land

c. With an aim to cause some good

d. With harmful intentions in mind

The correct answer is: With harmful intentions in mind

Question 2 A broker can be held responsible for any negligence towards his client as
Complete they are deemed to be in a _____relationship.
Mark 0.00 out of
1.00 Select one:
a. Fiduciary

b. Contractual

c. Agent - Principal

d. Advisory

The correct answer is: Fiduciary

Question 3 A Contract does not usually contain

Complete

Mark 1.00 out of Select one:

1.00
a. Particulars regarding financial planner's remuneration

b. Provisions regarding termination of the Contract

c. Confidentiality undertakings

d. Guarantees regarding non-default on the part of the invested

institutions

The correct answer is: Guarantees regarding non-default on the part of

the invested institutions

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2/10/2020 Unit Test - 9

Question 4 A contract entered into by a tenth standard student and his father as
Complete regards examination performance and the consequent rewards to be
Mark 1.00 out of earned will most likely not hold up in a Court of law because
1.00

Select one:
a. One of the partners is suspected to have been coerced to enter
into the agreement

b. There is no consideration involved

c. The objects of the partnership are illegal

d. The party/ies are underage

The correct answer is: The party/ies are underage

Question 5 A disclaimer is an express statement that attempts to restrict liability in

Complete the event
Mark 1.00 out of
1.00 Select one:
a. The client misunderstands the financial planner

b. The financial planner gives wrong advise

c. The financial planner commits a fraud

d. Something happens which is outside the control of the financial

planner

The correct answer is: Something happens which is outside the control of
the financial planner

Question 6 A Financial Planner does not violate his fiduciary duty to different
Complete constituents when he
Mark 1.00 out of
1.00 Select one:
a. reveals confidential client data to the media.

b. works for two different organisations at the same time without

disclosing the same to either of his employers.

c. discloses conflicts of interest in an upfront manner.

d. recommends a particular equity share based on his gut feeling.

The correct answer is: discloses conflicts of interest in an upfront manner.

Question 7 A Financial Planner does not violate his fiduciary duty when he reveals
Complete client data to_____ when asked.
Mark 1.00 out of
1.00 Select one:
a. The client's competitors

b. Direct Selling Agents of banks

c. The Media

d. Regulatory Authorities

The correct answer is: Regulatory Authorities

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2/10/2020 Unit Test - 9

Question 8 A lawyer who enters into a contract with a client to represent her in only
Complete one particular case can be deemed to be a _____ Principal
Mark 1.00 out of
1.00 Select one:
a. General Agent

b. Universal Agent

c. Special Agent

The correct answer is: Special Agent

Question 9 A negotiable instrument means that a person can get payment that is
Complete unconditional and capable of transfer by negotiation. This statement is
Mark 0.00 out of
1.00 Select one:
a. True only in the case of Bills of Exchange

b. True

c. False

d. True only in the case of Bearer Cheques

The correct answer is: True only in the case of Bills of Exchange

Question 10 A person is not a consumer if_____.

Complete

Mark 1.00 out of Select one:

1.00
a. he has paid a due and fair consideration for them.

b. he has received goods or services

c. All of the above

d. has bought such goods or service for resale or for commercial use.

The correct answer is: has bought such goods or service for resale or for
commercial use.

Question 11 Acceptance must be expressly communicated to the person making the

Complete offer in order to validate a Contract. This statement is
Mark 1.00 out of
1.00 Select one:
a. False

b. Financial Contracts

c. True by convention and not as per the Act

d. True only with respect to

e. True

The correct answer is: True

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2/10/2020 Unit Test - 9

Question 12 Any deficiency in service on part of a CFP practitioner, entitles the client
Complete to primarily sue under _____.
Mark 1.00 out of
1.00 Select one:
a. Criminal law

b. Law of Torts

c. Consumer Protection Act

d. Professional Liability

The correct answer is: Professional Liability

Question 13 Any deficiency in service on part of a Medical practitioner, entitles the

Complete client to primarily sue under
Mark 0.00 out of
1.00 Select one:
a. Consumer Protection Act

b. Professional Liability

c. Criminal law

d. Law of Tort

The correct answer is: Consumer Protection Act

Question 14 A_____ has limited authority.

Complete

Mark 1.00 out of Select one:

1.00
a. General Agent

b. Universal Agent

c. Special Agent

d. Principal

The correct answer is: Special Agent

Question 15 Free consent is defined as consent not caused by

Complete

Mark 0.00 out of Select one:

1.00
a. Mistake

b. both of the above.

c. none of the above.

d. Coercion

The correct answer is: Coercion

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2/10/2020 Unit Test - 9

Question 16 If a fifteen year old approaches you to make his Financial plan, you will
Complete most likely not accept him as a client because
Mark 1.00 out of
1.00 Select one:
a. He may not be a high net worth individual

b. He may not have long-term goals

c. He may not be able to afford your fees

d. He is not deemed to be legally capable of entering into a Contract

The correct answer is: He is not deemed to be legally capable of entering

into a Contract

Question 17 In legal parlance, the term 'Negotiation' stands for _____.

Complete

Mark 0.00 out of Select one:

1.00
a. Transfer

b. None of them

c. Discussing terms and conditions

The correct answer is: Transfer

Question 18 Law of Tort deals with _____ wrongs.

Complete

Mark 1.00 out of Select one:

1.00
a. Constitutional

b. White collar

c. Civil

d. Criminal

The correct answer is: Civil

Question 19 Liability is joint and several in a _____.

Complete

Mark 1.00 out of Select one:

1.00
a. Partnership

b. Sole Proprietorship concern

c. Unlisted corporate entity

d. Listed Corporate entity

The correct answer is: Partnership

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2/10/2020 Unit Test - 9

Question 20 National commission for consumer protection has a pecuniary

Complete jurisdiction of above Rs.
Mark 0.00 out of
1.00 Select one:
a. 30,00,000

b. 20,00,000

c. 35,00,000

d. 10,00,000

The correct answer is: 20,00,000

Question 21 Patrick, a CFP Practitioner entered into an agreement with Jude, a friend
Complete of his, wherein he agreed to prepare a comprehensive Financial Plan for
Mark 0.00 out of Jude within ten days. Jude gives him 50% of the Fees as an advance.
1.00 However at the end of ten days, only 50% of the plan was completed.
What is the recourse that Jude does not have?

Select one:
a. Suing Patrick in a Court of Law

b. Withholding the remaining payment

c. Ordering Patrick to complete the Plan immediately

d. Complaining to the FPSB that Patrick has violated the code of

Professionalism

The correct answer is: Suing Patrick in a Court of Law

Question 22 Selling the wrong type of policies in order to earn higher commissions
Complete will render an insurance agent to be held liable
Mark 1.00 out of
1.00 Select one:
a. For professional negligence

b. Under law of tort

c. For professional misconduct

d. Under the SEBI Act

The correct answer is: For professional misconduct

Question 23 Shyam, an illiterate farmer borrows a sum of money from Ram, a

Complete moneylender and enters into a contract with Ram that he will give up
Mark 1.00 out of possession of his farmland in favour of Ram in case he cannot repay the
1.00 loan on time. Is this Contract void ab initio?

Select one:
a. Yes. Because it is against public policy

b. Yes, because Shyam is not capable of entering into a contract as

he is illiterate

c. Yes. There is no consideration involved

d. No. It satisfies all the essential elements of a valid contract

The correct answer is: No. It satisfies all the essential elements of a valid
contract

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2/10/2020 Unit Test - 9

Question 24 The Companies Act, 1956 is applicable to _____.

Complete

Mark 1.00 out of Select one:

1.00
a. Foreign companies

b. Both (a) and (b)

c. Listed

d. Unlisted

The correct answer is: Both (a) and (b)

Question 25 The Consumer Protection Act can apply to

Complete

Mark 1.00 out of Select one:

1.00
a. All of the above

b. Financial Services

c. Goods

d. Medical services

The correct answer is: All of the above

Question 26 The duties of an agent do not include _____.

Complete

Mark 0.00 out of Select one:

1.00
a. Duty to execute the agency work with due care, diligence and skill.

b. Duty to protect the Principal from any impending legal action.

c. Duty to render proper accounts to the Client

d. Duty to perform the work as per the directions given.

The correct answer is: Duty to protect the Principal from any impending
legal action.

Question 27 The Economic Offences Wing does not deal with

Complete

Mark 1.00 out of Select one:

1.00
a. Professional Negligence

b. Chit Fund fraud

c. Forgery of currency

d. Money laundering

The correct answer is: Professional Negligence

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2/10/2020 Unit Test - 9

Question 28 The Indian Contract Act was passed in _____.

Complete

Mark 0.00 out of Select one:

1.00
a. 1872

b. 1956

c. 1938

d. 1881

The correct answer is: 1872

Question 29 The Investor Protection Fund was created by _____.

Complete

Mark 0.00 out of Select one:

1.00
a. The Stock Exchanges

b. Reserve Bank of India

c. The Central Government

d. SEBI

The correct answer is: The Central Government

Question 30 The rights of an agent do not include the right to _____.

Complete

Mark 1.00 out of Select one:

1.00
a. Remuneration

b. Retainer

c. Override his Principal

d. Lien

The correct answer is: Override his Principal

Question 31 The term "Property Interest" refers to

Complete

Mark 1.00 out of Select one:

1.00
a. None of them

b. The set of Rights that an owner is entitled to when owning a

property

c. Interest received by a bank while advancing a loan against

property

d. Interest evinced by interested parties in a property

The correct answer is: The set of Rights that an owner is entitled to when
owning a property

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2/10/2020 Unit Test - 9

Question 32 The time within which a stock broker should take steps for redressal of
Complete grievances of the investors is
Mark 0.00 out of
1.00 Select one:
a. One year.

b. Three months

c. One month.

d. Six months

The correct answer is: One month.

Question 33 This relationship between the trustees & the unit holders of a mutual
Complete fund shareholders is called a _____ relationship.
Mark 1.00 out of
1.00 Select one:
a. Fiduciary

b. Moral obligatory

c. Contractual

d. None of the above

The correct answer is: Fiduciary

Question 34 Two adults, viz. A and B, entered into a Contract whereby A would sell the
Complete Nation's secrets to B in exchange for a million dollars. The contract is
Mark 1.00 out of void at the outset because _____.
1.00

Select one:
a. A and B are minors

b. Both (b) and (c)

c. There is no consideration mentioned in the Contract

d. The object of the contract is illegal

The correct answer is: The object of the contract is illegal

Question 35 Under the Consumer Protection Act, a complaint should usually be filed
Complete within _____ year/s from the date on which the cause of action arose.
Mark 0.00 out of
1.00 Select one:
a. One

b. Four

c. Three

d. Two

The correct answer is: Two

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2/10/2020 Unit Test - 9

Question 36 _____ can be brought under "Tort".

Complete

Mark 0.00 out of Select one:

1.00
a. Forgery

b. Espionage

c. Manslaughter

d. Professional Liability

The correct answer is: Professional Liability

Question 37 _____ is not an essential element of a Contract.

Complete

Mark 1.00 out of Select one:

1.00
a. Both parties must be residing in the same country

b. The acceptance must be expressly communicated to the person

making the offer

c. A clear, unambiguous offer must made by one party

d. It must be accepted by another party on the same terms

The correct answer is: Both parties must be residing in the same country

◄ Unit Test 8(Forms of Business ownership/entity

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Introduction to Financial Planning ►

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