CHAPTER 6

1) The.. amount is the spare amount of money left over after an individual has paid all their monthly
liabilities
Surplus
Deficient
Shortfall
Not required
2) With higher liabilities the surplus amount available for investment would be.
Very high
High
Low
None of the above
3) An agent should encourage his client to more savings and investment than they can genuinely afford
as it would be useful to him after retirement
Statement is very true
Statement is partially correct
Statement is incorrect
Statement is partially incorrect
4) Should the professional adviser take account of a clients liabilities as part of their savings and
investment advice
Yes always
Not necessary
Sometimes
Never
5) Investment in gold provides
Regular income

Capital growth

Mixture of the two

None of the above

6) If the customer withdraws their money before the expiry of the lock-in-period, the mutual fund
deducts an load and pays the balance amount
Entry
Capital
Exit
Risk
7) Which of the following is not a level of risk associated with savings products
Low risk
Medium risk
Capital risk

High risk

8) In ULIP investment risk is borne by the

Insurance company
Investor

Both

None of the two

9) In participating plans the investment risk is taken by the

Insurance company
Investor
Both

None of the two

10) They are an instrument where an individual has to invest a lump sum amount with a bank for a fixed
tenure at a fixed interest rate
Bank deposit
Fixed deposit
Term deposit
All the three
11) In a cumulative deposit the interest is normally compounded on a . basis
Annual
Half yearly
Quarterly

Monthly

12) The are responsible for investing the funds based on the type of fund tht is chosen by
the investor with the AMC
Portfolio managers
Investment agents
Investment Managers
Brokers
13) The man advantage of investing in mutual fund is
Risk evasion
Risk surpass

Risk diversification

14) represent ownership of a company

Mutual funds
Debentures
Equity shares

Risk management

None of the above

15) BSE stands for

Bombay security exchange
Bombay stock exchange

Bombay silver exchange

None of the above

16) NSE stands for

National Stock Exchange
National Silver Exchange

National Security Exchange

None of the above

17) A shareholder receives the a share in the companys profits in the form of
Interest
Appreciation
Dividends

None of the above

18) The issue of . is a vote of confidence from the management to its shareholders about the
good financial performance and future prospects of the company.
Dividend
Bonus shares
High interest
All of the above
19) In the case of . the investors are the lenders who receive interest on their loan
Bonds
Shares
Fixed deposits
Term deposits
20) are issued to raise money from the public by way of loan
Shares
Fixed deposit
Term deposit
21) Which of the following is not a post office savings product
Time deposit account
Kisan Vikas Patra
Bonds
22) The full form of CBDT
Central Board of Direct Taxes
Controlling Board of Direct Taxes

Bonds

Public Provident Fund

Central Board of Dependant Taxes

Central Board for Dependant Taxes

23) Under section .. a deduction from taxable income is allowed for the interest paid on an
education loan.
80E
80D
80DD
80C
24) Under which section of the Income Tax Act can an individual get a deduction from taxable income
for the
80C
80D
80DD
80F
25) Interest rates are . to increase the credit demand encourage consumers to spend more
increase demand for goods and services
Increased
Reduced
Balanced
None of the above