Investment and Financial Planning Quiz # 2

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?

AAA

AAAA

Aaa

AAa

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."

True

False

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

Bonds

Liquid Funds

Floating Rate Funds

Fixed Maturity Plans

Both a and c

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

These are cheaper than ETFs (Exchange Traded Funds).

A demat or broking account is required for these funds.

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.

(a)& (b)

Negative equity exists _____________.

when assets exceed preference share capital

when accumulated profit exceeds assets

when liability exceeds assets

when accumulated profit exceeds liability

Investment by private equity funds in unlisted companies is called:

Private Investment in Public Equity

Private Investment in Private Equity

Private Investment in Partnership Equity

Private Investment in Preferred Equity

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

60

365

180

91

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

chartered accountant

analyst

surveyor

actuary

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

Group life; credit life

Credit life; mortgage life

Mortgage life; industrial life

Industrial life; special-purpose policies