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Mrs. Sharma, a 40-year-old widow, has an 8-year-old son. Her current savings are not adequate to provide for her son’s post graduate studies, however she will be able to save for it by the time he finishes graduation i.e. when he is 20 years old. Mortality tables indicate that her life expectancy is another 30 years.

Which one of the following is true?

A.

She needs to insure her life for 12 years

B.

She does not need to insure her life

C.

She needs to insure her life for 30 years

D.

She needs to insure her son’s life for 30 years

Concept of final pay is a feature of

A.

Defined benefit plan

B.

Defined contribution plan

C.

Hybrid plan

D.

None of the above

The benefits of exemption of one self occupied house is available to

A.

I only

B.

I and II only

C.

I, II, and III only

D.

All of the above

You are given the following set of data:

Historical Rate of Return

Determine the arithmetic average rates of return and standard deviation of returns of the NSE over the period given.

A.

14.25%, 23.75%

B.

12.10%, 22.62%

C.

15.63%, 27.63%

D.

16.74%, 29.74%

Disclaimers and assumptions are a part of

A.

Wealth Plan

B.

Research Notes

C.

Data gathering

D.

None of the above

Which of the following statement is/are true?

A.

I and II

B.

I,II and III

C.

I,III and IV

D.

All statements are true

A will that can only be made by a soldiers in actual warfare ,or airmmen or mariners at sea is known as:

A.

Mutual Will

B.

Contingent Will

C.

Privileged Will

D.

Concurrent Will

One should accept a project if NPV is

A.

Positive

B.

0

C.

Negative

D.

None of the above

What is the minimum paid up capital needed to form a Pvt. Company?

A.

No Minimum requirement

B.

Rs. 50000

C.

Rs. 100000

D.

Rs. 500000

If there is a loss under the head Income from House property, can it be adjusted against other income under any other Head?

A.

Yes

B.

No

C.

It can be adjusted only against income from salary

D.

It can be adjusted from agricultural income

Handing over Warehouse Receipt is an example of ________.

A.

Constructive Delivery

B.

Actual delivery

C.

Intangible delivery

D.

None of the above

Which of the following statement is true?

A.

A bond with a balloon payment cannot not have a sinking fund

B.

Calculation of the returns earned on a high-yield security should include the sale price of the bond as well as interest received.

C.

A firm may not repurchase bonds at a discount.

D.

A diversified portfolio of high-yield securities may be achieved with ten or fewer bonds.

ln the Transfer of property Act, immovable property does not include

A.

Building

B.

Land

C.

Pond

D.

Standing timber

Financial Independence usually occurs between _______

A.

40-55

B.

55-70

C.

70-85

D.

None of the above

Expenditure incurred by an employer on medical treatment and stay abroad of the employee shall not be taxed in the case of ___________.

A.

an employee whose gross total income before including the said expenditure does not exceed Rs. 2 lakhs.

B.

an employee whose income under the head “Salaries” exclusive of all monetary perquisites does not exceed Rs. 2 lakhs,

C.

an employee whose income under the head “Salaries” exclusive of allnon-monetary perquisites does not exceed Rs. 2 lakhs,

D.

all employees irrespective of their amount of gross total income/the amount of income under the head “Salaries”.

Residential status is to be determined for:

A.

Assessment year

B.

Accounting year

C.

Next coming year

D.

Previous year

Which of the following is true of Reverse Repo rate?

A.

Determined by free market forces

B.

Lower than repo rate

C.

benchmark for long term rates

D.

Part of funding cost for commercial banks

If any person has escaped assessment for any assessment year in respect of wealth tax no action shall be taken after the expiry of………

A.

One year

B.

Two years

C.

Three Years

D.

Four Years

Accumulation, preservation and distribution are stages of

A.

Financial Life cycle

B.

Human Life Cycle

C.

Human Life Value

D.

All of the above

The length of the insurance industry’s business cycle is shortened because of

A.

Regulatory provisions

B.

High specialization

C.

Easy entry and exit conditions

D.

None of these