Investment Adviser (Level 2) Free Demo Test 5

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1. How does a pure risk differ from a speculative risk ?

a) A pure risk always has an environmental cause whereas a speculative risk always involves human Error.

b) A pure risk can be measured in probability terms whereas a speculative risk cannot.

c) A pure risk is not subject to regulatory control but a speculative risk always is.

d) A pure risk only leads to the possibility of a loss, whereas a speculative risk may lead to a gain.

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2. Saurabh, aged 30, wants to retire at 45. He wants to maintain his present living standard. He spends Rs. 3,25,000 a year. He is expected to live upto 85. Inflation is to be assumed at 4% p.a and expected returns are 7% p.a. What is the retirement corpus required by Saurabh at his age 45 and what amount should he save every year end to meet his plan? His present investments are Rs 10,00,000?

a) Rs. 13182815; Rs. 454805

b) Rs. 15182815; Rs. 454705

c) Rs. 14182815; Rs. 454605

d) Rs. 13182815; Rs. 454505

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3. What is the Maximum limit/ Government notified amount of gratuity payable as per the Act?

a) Rs 3,50,000

b) Rs 10,00,000

c) Rs 5,00,000

d) Rs 20,00,000

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4. The following is the premise of Prospect Theory:

a) Choices are evaluated relative to a reference point (which is their wellbeing);

b) People are risk-averse about gains (realizing it early) but risk seeking about losses (holding to them longer)

c) Monetary losses hurt more than monetary gains

d) All the above

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5. A person who prepares the Will is called a/an _______.

a) Testator

b) Deceased

c) Executor

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6. Pension received from the former employer is classified under the head__________?

a) Income from Salaries

b) Income from other sources

c) Income from capital Gain

d) Gratuity

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7. Which of the following depends on the market?

a) Strategic asset allocation

b) Tactical asset allocation

c) Investor risk profile

d) Optimal Asset Allocation

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8. If the NPS subscriber’s grievance is not resolved within 30 days from the submission of the grievance to the NPS Trust then the subscriber can appeal to the _______________.

a) CRA

b) NPS Trustees

c) Ombudsman

d) SEBI

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9. The number alloted in NPS is:

a) Personal Pension Account Number

b) Personal Retirement Account Number

c) Permanent Retirement Account Number

d) Permanent Pension Account Number

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10. A standard deduction of _______ is allowed from salary income.

a) Rs 1,000 per month

b) Rs 40,000

c) Rs 30,000

d) Rs.50,000

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Investment Adviser (Level 2) Free Demo Test 5

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