Question 1

Which of the following statement is/are correct?

Options :

A : Only (i)

B : Only (ii)

C : Both of the above

D : None of the above

Answer: C

Question 2

Solvency ratio is usually __________ in the case of young couples as compared to senior citizens

Options :

A : Lower

B : Higher

C : Equal

D : There is no comparison

Answer: A

Question 3

Which of the following is not true about traditional defined benefit plans?

Options :

A : A defined benefit plan provides a specified retirement benefit, and is funded based on actuarial assumptions

B : A defined benefit plan provides higher proportionate benefits for key employees when key employees as a group are older than rank and file employees

C : A defined benefit plan provides an individual account for each employee who participates

D : A defined benefit plan can provide benefits for service prior to establishment of the plan

Answer: A

Question 4

Principal vectors of an active portfolio strategy are:

Options :

A : Market timing.

B : Sector rotation.

C : Security selection.

D : All of the above.

Answer: D

Question 5

Nishant aged 35 years is married and is working as a manager in M/s Zenith Ltd. His most likely retirement age is 60 years.His present salary is Rs. 3,00,000/- pa and self-maintenance expenses are 30,000/- per year. He pays Life insurance premium paid of 15,000/-and Income tax & professional tax amount to Rs. 20000/-. Rate of interest assumed for capitalization of future income is 8%. Calculate Nishant’s HLV to recommend adequate insurance cover.

Options :

A : Rs. 25 lakh

B : Rs. 23 lakh

C : Rs. 29 lakh

D : Rs. 27 Lakh

Answer: D

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