aafm glo cwm lvl 1 practice test

"Which of the following can benefit from SARFAESI, 2002?"

• A. Banks
• B. Financial Institutions
• C. Both of the above
• D. None of the above

A trust is extinguished if

• A. All the beneficiaries who all competent to contract have given their consent for revocation of the trust
• B. Fulfillment of its purpose her become impossible
• C. In purpose is completely fulfilled
• D. Any one of the above

Mathematically the Efficient Frontier is the intersection of the Set of Portfolios with ....…. Variance
and the Set of Portfolios with ……. Return.

• A. Maximum, minimum
• B. Minimum, maximum
• C. Minimum, minimum
• D. None of the above

Deduction under section 80QQB is allowed to an author of a book of literary or artistic or scientific
nature who is resident in India to the extent of:

• A. 100% of royalty income or Rs. 5,00,000 whichever is less
• B. 100% of royalty income or Rs. 3,00,000 whichever is less
• C. 50% of royalty income or Rs. 5,00,000 whichever is less
• D. 50% of royalty income or Rs. 3,00,000 whichever is less

In “Teenage Years” life stage, one learns about ___________

• A. Budgeting
• B. Earned income
• C. How money makes money
• D. All of the above

Mixed economy refers to.....

• A. Where both the public and private sector play a dominant role in the running of the country’s economy.
• B. Where economic decision and inputs are made by the free trading market
• C. Where economic decisions and inputs are made by the government through economic planning .
• D. All of the above

Consider two bonds, X and Y. Both bonds presently are selling at their par value of Rs.1000. Each pays
interest of Rs.150 annually. Bond X will mature in 6 years while bond Y will mature in 7 years. If the
yields to maturity on the two bonds decrease from 15% to 12%:

• A. Both bonds will increase in value, but bond X will increase more than bond Y
• B. Both bonds will decrease in value, but bond X will decrease more than bond Y
• C. Both bonds will increase in value, but bond Y will increase more than bond X
• D. Both bonds will decrease in value, but bond Y will decrease more than bond X

A person is said to be Cognate of another if the two of them are related by blood or adoption entirely
or wholly through males.

• A. TRUE
• B. FALSE

According to the capital asset pricing model, the expected rate of return on any security is equal to
__________.

• A. [(the risk-free rate) + (beta of the security)] x (market risk premium)
• B. (the risk-free rate) + [(variance of the security's return) x (market risk premium)]
• C. (the risk-free rate) + [(security's beta) x (market risk premium)]
• D. (market rate of return) + (the risk-free rate)]

Which of the following is not correct in relation to ETFs?

• A. ETFs provide exposure to an Index or a basket of securities that trade on the exchange like a single stock
• B. ETFs can be bought and sold on the exchange at prices that are usually closer to the actual intra – day NAV of the scheme
• C. ETFs trade very close to their actual NAVs
• D. Intra Day trading of ETFs is very expensive