Our experts have gathered these Investment and Financial Planning MCQs through research, and we hope that you will be able to see how much knowledge base you have for the subject of Investment and Financial Planning by answering these 30 multiple-choice questions.
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A. Monthly Income Scheme
B. Balanced Funds
C. Fixed Maturity Plans
D. All of the above
A. Life insurance is a long-term contract whereas general insurance contract is mostly one-year renewable contract.
B. Premium charged under a life insurance is calculated with the help of mortality table but in case of general insurance, premium is calculated based on the fixed tariff plans.
C. To determine the financial value of life under life insurance is difficult whereas financial value of asset to be insured under general insurance can be determined.
D. Life insurance contract is a contract of indemnity whereas general insurance contract is not.
A. Stocks
B. Bonds
C. Money market instruments
D. All of the above
A. Liquid Funds
B. Income Funds
C. Long Term Floating Rate Funds
D. Short or Medium Term Floating Rate Funds
A. Index funds
B. Long-term income funds
C. Fixed maturity plans
D. Exchange traded funds
A. 5
B. 6
C. 7
D. 10
A. Household
B. Health
C. Retirement
D. Travel
E. Whole life coverage
F. None of the above
A. Single premium whole life insurance
B. Graded premium whole life insurance
C. Indexed whole life insurance
D. Special purpose life insurance
A. Wheat
B. Fruit
C. Oil
D. Sugar
E. Cocoa
A. Total long-term assets = $1000
B. Total long-term liabilities = $500
C. Total current assets = $1000
D. Total current liabilities = $1300
A. Short-Term Income Funds
B. Medium-Term Income Funds
C. Small Cap Funds
D. Large Cap Funds
Mark had taken an accident insurance policy, which covers losses due to road accidents. His car met with an accident. Due to the accident, he suffered from a shock. Due to the imbalance caused by the shock, he fell into a river and lost his life due to drowning.
Will his death be covered by the accident policy that he had taken?
A.
Yes
B.
No
A. Damage or loss of goods
B. Damage to cargo.
C. Profits made by ship owner from the ships used for carrying cargo.
D. Legal liabilities of the owner.
E. Losses in case cargo is not deliverable.
Suppose, an FMP (Fixed Maturity Plan) involving investment through AAA securities is offered for 2 years. The AAA securities are paying an 8% interest on 2-year securities and the expense ratio of the scheme is 0.8%. Which of the following is the indicative return that can be expected by the investor?
A.
8%
B.
7%
C.
7.2%
D.
8.8%
A. person's death
B. person's retirement
C. person attains a certain age, for example 80-85 years
D. person attains the age of 100 years
Calculate the Debt Equity Ratio if:
Accumulated Profit= $2000
Equity Share Capital= $5000
Preference Share Capital= $5000
Debentures= $15000
A.
5:4
B.
3:2
C.
4:5
D.
3:1
A. Juvenile endowment policy
B. A semi endowment policy
C. Single premium endowment policy
D. Modified endowment policy
Sam owns a manufacturing business and stores the manufactured goods in three different warehouses.
Which of the following types of policy is the best for him so that the goods at all the warehouses are insured and protected?
Sam owns a manufacturing business and stores the manufactured goods in three different warehouses.
Which of the following types of policy is the best for him so that the goods at all the warehouses are insured and protected?
A.
Specific policy
B.
Valued policy
C.
Floating policy
D.
Comprehensive policy
E.
None of the above
A. Minor control
B. Major control
C. Complete control
A. equity securities, which are not publicly traded on a stock exchange
B. equity securities and accumulated profits, which are publicly traded on a stock exchange
C. equity share capital, which are not publicly traded on a stock exchange
D. equity securities and shareholder's fund, which are not publicly traded on a stock exchange
A. Involving a fixed term.
B. Involving large number of equity allocation.
C. Involving a high NAV (Net Asset Value).
D. Always open for investments and redemption.
E. Both b and c
A. Initial Public Offer
B. New Fund Offering
C. Mutual Fund Service System
D. Systematic Transfer Plan
A. high dividends
B. low dividends
C. no dividends
A. KYC (Know Your Client)
B. Portfolio management
C. NAV (Net Asset Value)
D. Savings Bank Account
A. accident
B. Marine
C. travel
D. fire
A. freight
B. cargo
C. protection
D. Hull
Calculate Shareholders' equity if:
Total Share Capital = $575,000
Total Retained Earnings = $122,000
Treasury Shares = $325,000
A.
30 days
B.
60 days
C.
90 days
D.
120 days
A. Spot market
B. Derivatives market
C. Both a and b
D. None of the above
A. Mutual fund schemes cannot invest in equities.
B. Mutual fund schemes cannot invest in debt securities.
C. Mutual fund schemes can give loans.
D. Mutual fund schemes cannot invest in securities issued by central government, state government, or public sector companies.
E. All of the Above
A. True
B. False
A. AAA
B. AAAA
C. Aaa
D. AAa
A. True
B. False
A. Bonds
B. Liquid Funds
C. Floating Rate Funds
D. Fixed Maturity Plans
E. Both a and c
A. These are cheaper than ETFs (Exchange Traded Funds).
B. A demat or broking account is required for these funds.
C. On a particular day, the investors will get units at the same NAV (Net Asset Value) irrespective of the time of purchase w.r.t cutoff time.
D. (a)& (b)
A. when assets exceed preference share capital
B. when accumulated profit exceeds assets
C. when liability exceeds assets
D. when accumulated profit exceeds liability
A. Private Investment in Public Equity
B. Private Investment in Private Equity
C. Private Investment in Partnership Equity
D. Private Investment in Preferred Equity
A. 60
B. 365
C. 180
D. 91
A. chartered accountant
B. analyst
C. surveyor
D. actuary
A. Group life; credit life
B. Credit life; mortgage life
C. Mortgage life; industrial life
D. Industrial life; special-purpose policies