Q1.
(I) Asset Allocation involves making a choice of which particular security to hold within each asset class.
(II) Security selection involves making a choice among broad asset classes.
Q2.
(I) Default risk is mainly associated with debt instruments.
(II) Governments are generally known to default on their payments.
Q3.
(I) Reinvestment risk arises when there is a rise in interest rates.
(II) Interest rate risk arises when there is a fall in the rates.
Q4.
Which stage is characterized by moderate risk taking and a progressive approach to investment?
Q5.
Risk averse unwilling to accept more and more risk unless he gets a disproportionately higher return.
Q6.
(I) Asset allocation is the process of determining optimal allocations for the broad categories of assets that suit your investment time horizon and risk tolerance.
(II) An index fund is a scheme that replicates the market or some other index of returns.
Q7.
In case of Fully Replicated Funds, the managers hold the funds in the same proportion as the index.
Q8.
Higher the tracking error, the better the performance.
Q9.
Government securities are issued by RBI in the form of promissory notes for various periods of maturities with a minimum amount of ___________ and multiples thereof.
Q10.
Government dated securities are issued for maturities beyond __________ and up to ________ years so far.
Q11.
Which is the wrong maturity for Treasury bills?
Q12.
Investment in gilt can be made for a minimum amount of _____________ in case of SGL form.
Q13.
Investment in gilt can be made for a minimum amount of ___________ in case of DEMAT form.
Q14.
(I) Gilt funds are mutual funds dedicated exclusively to investments in Government securities.
(II) Money market instruments are markets for short term debt instruments with a maturity of up to one year.
Q15.
The tenure of CPs can be __________ and __________.
Q16.
The most popular duration of CP is ___________.
Q17.
A minimum amount that can be invested by a single investor in CP is __________ and multiples thereof.
Q18.
Certificates of Deposits have maturity ranging from __________ to __________.
Q19.
Money invested in Public Provident Fund (PPF) appreciates _________ per annum.
Q20.
The minimum investment in a PPF account is _____________ per annum for each year of the scheme.
Q21.
The duration of a PPF account is __________ years.
Q22.
(I) A life Annuity provides periodic payments that are unrelated to lifetime of the annuitant and are payable for a stated period of time.
(II) An Annuity Certain provides periodic benefit payments during the lifetime of the annuitant and ends only with his death.
Q23.
(I) ICICI pension bonds are an example of a deferred Annuity.
(II) Bima Nivesh 2001 policy can be taken for a 15 year term.
Q24.
Persons between _________ and ___________ years can join UTI Retirement Benefit Plan.
Q25.
Persons within the age group of __________ to ___________ years can take Nav Prabhat policy.
Q26.
Index funds have a lower expense ratio than non-index funds.
Q27.
Ram will have a total of Rs. 20, 00,000 assets at the time of retirement (7 years later). What is the present value of the amount today @ 5%?
Q28.
John has invested Rs. 5,000 in a fund. After 15 years he is entitled to receive Rs. 7,500. What rate of interest is realized in the transaction?
Q29.
Open market option is the facility to take the annuity purchase price to another company before the commencement of the annuity.
Q30.
What is the maturity period of money market instrument?
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