Practice Test

Q1) Risk and investing are independent. Show Answer

Q2) High risk gives opportunity to earn _________ return. Show Answer

Q3) Investor which investing is stock market does not take any risk. Show Answer

Q4) Investing in foreign companies carries the _________. Show Answer

Q5) __________ Risk is the risk the risk that a company will be unable to pay the contractual interest or principal on its debt. Show Answer

Q6) _________ bonds have lowest default risk. Show Answer

Q7) _________ bonds give lowest return. Show Answer

Q8) Rating of ‘Government Bonds’ are done by RBI. Show Answer

Q9) Bull market refers to _________ performance of stock price. Show Answer

Q10) Market volatility is affected by the market sentiment. Show Answer

Q11) Every investor has same risk profile. Show Answer

Q12) While gives investment advise time period for investment does not matter. Show Answer

Q13) Financial planners follow a _________ step process to deliver financial planning services. Show Answer

Q14) Financial planning and corporate finance are one and the same. Show Answer

Q15) _________ is determining the adequacy of insurance cover required by the client. Show Answer

Q16) Investment advisors should ensure diversification of Investment. Show Answer

Q17) Tax planning involves evasion of tax. Show Answer

Q18) Only a chartered accountant can offer tax planning services. Show Answer

Q19) Financial advisor can charge a professional fee for the financial planning services rendered. Show Answer

Q20) Financial planner can also earn commission by offering following product to his clients. Show Answer

Q21) 100 in hand 2 year after is better than 100 in hands today. Show Answer

Q22) Rs 10,000 today is equivalent to Rs 10,000 5 years after. Show Answer

Q23) SIP refers to _________. Show Answer

Q24) Buying furniture denotes cash _________. Show Answer

Q25) A retired person should invest more in which category? Show Answer

Q26) Equity investments are considered to be _________ investment. Show Answer

Q27) Which of the important variable involved in asset allocation? Show Answer

Q28) Diversification increases the overall risk. Show Answer

Q29) Right investment is balance of ___________. Show Answer

Q30) SEBI has prescribed KYC norms for all the intermediaries in securities market. Show Answer

Q31) There are KYC forms for individuals and non-individuals. Show Answer

Q32) The intermediary while doing KYC take PAN CARD of client for verification and keep original with him and need not to return. Show Answer

Q33) SEBI has proposed different KYC across all intermediaries. Show Answer

Q34) PAN is mandatory and no trades take place without it. Show Answer

Q35) Interest income from bonds, debentures, etc is exempt from income tax. Show Answer

Q36) It is difficult to anticipate stock market movements, especially for the short term. Show Answer

Q37) The difference between the selling price (of sale in the stock exchange or as re-purchase of units by the scheme) and buying price of an investment is treated as a ______ (or loss). Show Answer

Q38) Which of the following is a financial goal? Show Answer

Q39) An investor who has a short-term financial need may choose to invest primarily in Show Answer

Q40) Savings accounts and government bonds carry the risk of___________. Show Answer

Q41) Interest rate risk affect value of _________ more directly. Show Answer

Q42) Foreign exchange risk applies to all financial instruments that are in a currency other then _________. Show Answer

Q43) News which can offer only to a selected company and its securities is an example of _________ Risk. Show Answer

Q44) Unsystematic risk normally affects _________ companies. Show Answer

Q45) Country risk applies to _________ securities issued in that country. Show Answer

Q46) Who among the following have highest concern about default risk. Show Answer

Q47) Bond rating is done by _________. Show Answer

Q48) _________ risk is a risk which may arise due to sudden change Government policies or change in Government. Show Answer

Q49) Which of the following is not a key p on which an investor’s risk tolerance can depend? Show Answer

Q50) _________ is the process of meeting once life goods through the process management of personal finance. Show Answer

Q51) Gathering client data is _________ step in the process of financial planning. Show Answer

Q52) While offering solution to client which of the following should be analyzed? Show Answer

Q53) Investment planning is based upon the time horizon risk profit and _________ goals of the client. Show Answer

Q54) Tax planning included assessing tax liability for the _________ year. Show Answer

Q55) A financial planner offering comprehensive financial planning should offer _________ advice. Show Answer

Q56) 1000 now will become _________ after years at 8% p.a. interest. Show Answer

Q57) 500 will become _________ after 2 year at 10% p.a. interest. Show Answer

Q58) __________ is a list of planned expenses & revenues. Show Answer

Q59) In post-retirement phase cash flow of most of the individual remain _________. Show Answer

Q60) A strategy of investment allocation how much and when to interest or withdraw is commonly known as _________. Show Answer

Q61) A person age is 68 year should he invest in equity more? Show Answer

Q62) _________ portfolio is recommended for near term goals. Show Answer

Q63) _________ portfolio is recommended for long term goals. Show Answer

Q64) Government bonds are considered as _________ investment. Show Answer

Q65) For clients with _________ term investment time frames, review need to be carried out at less frequent investment. Show Answer

Q66) Which of the following cannot be submitted for proof of address? Show Answer

Q67) If the holding period in share is 2 years it is considered as __________. Show Answer

Q68) Dividends form shares and mutual funds are exempt from income tax. Show Answer

Q69) Returns for an investor in the equity market comes from dividend and ________. Show Answer

Q70) _______ are professionals who offer independent advice on financial matters to their clients and recommend suitable financial products or products that are traded and settled like financial products. Show Answer

Q71) Assuming a market downtrend situation, stocks of companies in which of the following industry will get hammered heavily? Show Answer

Q72) The asset allocation of a investor should be ideally aligned to: Show Answer

Q73) Arbitration is a __________ process of settlement of disputes between Trading Members, Investors, Sub-brokers & Clearing Members. Show Answer

Q74) Any reduction in interest rate will _________ the value of debt instrument. Show Answer

Q75) Any increase in interest rate will _________ the value of debt instrument. Show Answer

Q76) The interest rate and value of debt instrument have _________ relation. Show Answer

Q77) ___________risk is referred to as ‘specific risk’. Show Answer

Q78) Bonds with lower chances of default are considered to be _________ grade. Show Answer

Q79) Bonds with higher chances of default are known as _________ bonds. Show Answer

Q80) A single investment model if well shaped can be suitable for all investors. Show Answer

Q81) Which of the following is not a key parameter on which an investor’s risk tolerance can depend? Show Answer

Q82) While performing insurance planning services the advisor need not take into account the existing insurance cover of client. Show Answer

Q83) ___________is determining how much of corpus is required to fund the expenses during the retirement years and way to build required. Show Answer

Q84) _________fund is a fund kept aside for emergencies. Show Answer

Q85) Contingency fund can be kept in following forms except in Show Answer

Q86) Value of money increases day by day due to inflation factor. Show Answer

Q87) In pre-retirement phase your cash flow should be _________ at all time. Show Answer

Q88) _________ portfolio is recommended for medium term goals. Show Answer

Q89) Normally equity is bought when the price are _________. Show Answer

Q90) _________ asset allocation strategy involves sticking to long term asset allocation. Show Answer

Q91) Inflation increases the real income. Show Answer

Q92) For client with _________ term investment time frames reviews need to be carried out at more frequent investment. Show Answer

Q93) Investment that does not meet client risk profit need to be _________. Show Answer

Q94) Long term capital losses can be set off only against _________. Show Answer

Q95) Short term capital losses can be set off against _________. Show Answer

Q96) Losses (both long and short term) if not set off in a year can be carried forward for _________ years. Show Answer

Q97) Dividend distribution tax is applicable at _________ %. Show Answer

Q98) If the investor is in 30% tax bracket, then 8.1% post-tax return is equivalent to ________ in pre-tax terms. Show Answer