Investment And Financial Planning MCQ Questions Answers

1. ____ and ____ are both relatively expensive types of decreasing-term life insurance.

2. A/An _______________ takes up the process of valuation in a life insurance company.

3. It is possible to invest in money market securities of maturity up to ____ days through liquid funds /short term deposits.

4. Investment by private equity funds in unlisted companies is called:

5. Negative equity exists _____________.

6. Which of the following statements about Index Scheme of mutual funds is/ are true?

7. Which of the following types of schemes are close-ended in nature?

8. State whether the following statement is true or false. "Equity shareholders have first preference in regard to the repayment of capital over others at the time of winding up of a company."

9. Which of the following is the highest possible rating assigned to the bonds of an issuer by credit rating agencies such as Standard & Poor's and Fitch Ratings?

10. International Funds or Foreign Funds invest only outside the home country.

11. Which of the following statements regarding mutual fund schemes is true?

12. In which of the following types of commodity markets are commodities bought and sold for immediate delivery?

13.

Calculate Shareholders' equity if:

Total Share Capital = $575,000

Total Retained Earnings = $122,000

Treasury Shares = $325,000

14. Physical damage to a ship is covered by __________ insurance.

15. Damage to the goods carried by cargos are covered under __________ insurance

16. Which of the following can be a valid confirmation that can make you eligible for an investment in any kind of mutual funds?

17. High profits of an organization mean ____________ for an equity shareholder.

18. Through which of the following are the new mutual fund schemes offered to the investors for the first time?

19. What does the term "open-ended" mean in mutual fund investment schemes?

20. In finance, private equity consists of an operating company's ______________.

21. ____________ of an existing organization is bought by a private equity firm in a typical leveraged buyout transaction.

22.

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?

23. Which of the following types of endowment policies is designed to cover a child's marriage, education and independence?

24.

Calculate the Debt Equity Ratio if:

Accumulated Profit= $2000

Equity Share Capital= $5000

Preference Share Capital= $5000

Debentures= $15000

25. Which of the following options is false about equity shareholders?

26.

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?

27. Which two of the following are covered by the Freight Insurance Policy?

28.

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?

29. Which two of the following types of mutual fund schemes invest only into shares of companies?

30. A corporation has:

31. Which of the following is not considered as a soft commodity?

32. In which of the following types of whole life insurance, does the face amount increase with an increase in inflation?

33. Which two of the following types of areas are not covered by general insurance?

34. After how many years will a person be presumed to be dead if the person leaves his/her usual place of residence and is neither heard of nor known to be living?

35. Under which of the following types of Mutual Funds schemes are gold investments made?

36. Which two of the following mutual funds investment schemes do not involve a lock-in period?

37. In which of the following options can mutual funds companies invest?

38. Which of the following differences between the life insurance and general insurance is not correct?

39. Which of the following types of Hybrid Funds (involving an investment in a mix proportion of equity & debt such as a proportion of 60:40) provides a consistent and regular return?