Model Question Paper.pdf

AN ISO CERTIFIED 9001:2015 COMPANY SEBI Investor Certification Exam Name : _________________________ Age : ____________________ Date : _____...

AN ISO CERTIFIED 9001:2015 COMPANY SEBI Investor Certification Exam Name : _________________________ Age : ____________________ Date : ____________________ Total Question - 50 (Two Mark Question) Total Mark - 100 Time - 60 min 1. For which of the following facility, the account holder has to pay interest to the bank ? A. Savings Bank Account B. Current Account C. Overdraft Facility D. Recurring Deposit Account 2. A bank passbook is useful for the purpose of ______________. A. Making payment On E-Commerce Websites B. Withdrawing money from ATM C. Making Payments to Merchants D. Keeping records of various transactions in One’s Bank Account 3. Sujoy wants to open a Savings bank account with a bank. The bank manager asks him to produce address proof and photo identity for the purpose of _______________. A. Assessment of Insurance Needs B. Investment Management Process C. Know - Your - Customer (KYC) Process D. Loan Pre - Approval Process 4. How is the process of Budgeting helpful to you ? A. It helps me in Saving Taxes B. It Enhances my income C. It helps me in taking control of my Expenses D. It helps in increasing the value of my investments 5. In what scenario Consolidated Account Statement (CAS) is NOT issued to Investors ? A. When there are no financial transactions made B. When the investor has multiple demat accounts C. When the investor prefers physical statements D. When the investments are in Foreign Currency Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 6. Compounding works on the principle of ____________. A. Interest On Interest B. Simple Interest C. Reducing Balance D. Flat rate 7. Electronic contract notes can be issued by the broker only with the prior authorization of the _____________. A. Client B. Depository Participant C. Banker D. Stock Exchanges 8. Which of the following loans is likely to have the highest interest rate ? A. Credit Card Loan B. Loan Against Gold C. Car Loan D. Housing Loan 9. What is the difference Between a debit card and credit card? A. A debit card is a direct account access card, whereas a credit card involves short term credit to the card holder from the bank B. A debit card can be used for making payments, whereas a credit card can be used only for the purpose of withdrawal of money from the bank C. A debit card can be used only for the purpose of withdrawal of money from the bank, whereas a credit card can used for making payments to third parties D. There is no difference between the two 10. What does a put option give the buyer the right to do ? A. Sell the underlying security B. By the underlying security C. Change the contract terms D. None of the above Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 11. “Do not put all your eggs in one basket” - these popular proverb refers to an investment concept. Which concept is it ? A. Inflation B. Professional management C. Diversification D. Dematerialization 12. How should investors handle discrepancies in documents ? A. Report promptly to the concerned Stock Exchange, Intermediary or Asset Management company B. Keep them hidden C. Post them online D. Ignore them completely 13. Which of the following is not an investment product ? A. Term Plan B. Mutual Fund C. Exchange Traded Fund (ETF) D. National Pensions Scheme (NPS) 14. What is the main advantage of ETFs over regular Mutual Funds? A. Higher daily Liquidity and Lower fees B. Higher Fees C. Lower Liquidity D. Restricted Trading Hours 15. ______________ Provides healthcare facilities to poor families. A. UJJWALA B. Vaya Vandana C. Ayushman Bharat D. AYUSH 16. Liabilities are money ___________ by a person. A. Owned B. Owed C. Earned D. Invested Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 17. What does the principle of “Time value of Money” mean? A. No investment carries any risk B. Stock market investments are risk - free C. A certain amount of money today is worth less than the same amount of money in future D. A certain amount of money today is worth more than the same amount of money in future 18. The relation between inflation and value of money is _____________. A. Direct B. Inverse or Opposite C. Proportionate D. Exponential 19. Buying an insurance policy from an insurance company is an example of _____________. A. Risk Avoidance B. Risk Retention C. Risk Transfer D. Risk Taking 20. Mayank has just retired. He is a widower. His son and daughter are well settled. He has no liabilities. He currently has a balance of Rs 10 lakhs in his account. His bank RM suggests that he invests in a ULIP that will give him a good risk cover and great returns. What should he do ? A. By the ULIP B. Study the ULIP further C. He may ignore that advice, as he does not need a Life Insurance product D. None of the above 21. What is a rider in the context of Insurance? A. Extra premium payable due to Health Conditions B. Conditions, which are not covered through Insurance C. Certain minimum amount that the insured has to pay before the Insurance Company settled the claim D. Add - On options that can be added to our Life Insurance policy Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 22. Which of the following is not a function of IRDAI ? A. Registering and Regulating Insurance companies B. Licensing and Establishing norms for Insurance Intermediaries C. Regulating and Overseeing premium raters and terms of Non - Life Insurance covers D. Regulation of Mutual Funds 23. Which of the following is a better investment option to manage inflation risk in the long run ? A. Stocks B. Govt bonds C. Public Provident Fund D. Company fixed deposit 24. Which of the following is a sign of possible scam ? A. Attractive returns presented with associated risk factors B. Low risk presented with low returns C. Low risk presented with fixed Lock - In period D. Attractive returns presented as very safe option 25. Which of the following is considered as High Risk investment product ? A. Mutual funds B. Bonds C. Stocks D. EPF 26. For short term needs, investments should be made in ______________. A. High Risk Products B. Low Risk Products C. Medium Risk products D. High-Return No-Risk products 27. A listed company wants to raise money for expansion through issue of additional shares. What are the ways in which it can do that ? A. Rights issue or Follow - On Public Offering (FPO) B. Initial Public Offers (IPO) or Bonus issue C. Bonus Issue or Stock Split D. Buyback of shares or by announcing special dividend Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 28. Why is KYC mandatory while opening accounts, under the Prevention of Money Laundering Act 2002 ? A. To monitor Stock Market prices B. To promote cash transactions C. To prevent illegal trading activities D. To generate leads for marketing 29. Which of the following is NOT a type of Life Insurance product ? A. Term Insurance B. Whole Life insurance C. Endowment policy D. Marine Insurance 30. With which of the following do you associate the term “Equated Monthly Installment” (EMI) ? A. Home Loan B. ATM card C. Credit score D. Savings Account 31. Which of the following is a secured loan ? A. Home Loan B. Credit card Rollover Debt C. Personal Loan D. Loan Against Credit card 32. The process of launch of a New Mutual Fund Scheme is known as ______________. A. Initial Public Offer (IPO) B. Offer for Sale (OFS) C. First Fund Offer (FFO) D. New Fund Offer (NFO) 33. You have some surplus money that you may need over the next 30 to 45 days. Which of the following mutual fund schemes should you consider? A. Liquid Fund B. Equity Linked Saving Scheme (ELSS) C. 3 Year Fixed Maturity Plan D. Balanced Fund Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 34. From where can you buy securities of listed companies ? A. Stock Broker Members of Stock Exchanges B. Bank C. Post Office D. Securities and Exchange Board of India (SEBI) 35. Current value of your mutual fund investments = ________________________. A. Your unit Balance plus the Fund’s NAV B. Your unit Balance minus the Fund’s NAV C. Your unit Balance multiplied the Fund’s NAV D. Your unit balance divided the Fund’s NAV 36. IMPS stands for _________________. A. Immediate Payment Service B. International Money Payment System C. Internal Money Payment System D. Intermediate Merchant Payment System 37. The Pension Fund Manager are required to invest strictly in accordance with the guidelines issued by the _________________. A. Pension Fund Regulatory and Development Authority (PFRDA) B. Insurance Regulatory and Development Authority of India (IRDAI) C. Securities and Exchange Board of India (SEBI) D. Association of Mutual Funds in India (AMFI) 38. In the context of Investment, “Safety” refers to _____________. A. Growth in the value of Investment B. Protection of the principal value C. Tax on Investment returns D. Ability to convert one’s Investment into cash 39. Can a client revoke a Power of Attorney at any point in time ? A. Yes, it is revocable with consent of the broker B. No, it can only be revoked after a year C. Yes, it can be revoked at anytime D. No, it cannot be revoked Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 40. An Investor should avoid investing in which of the following ? A. Mutual Funds B. Stocks C. Ponzi Schemes D. Government Securities 41. Which of the following is likely to be the Riskiest in terms of Credit Risk? A. Government of India Bonds B. AAA rated Debentures of Public Sector Undertakings (PSUs) C. Public Provident Fund (PPF) D. AA rated Fixed Deposits of Non-Banking Financial Companies (NBFC) 42. The two key functions of the Central Bank in an economy are ________________. A. Issuing Notes and Coins B. Farming of Macroeconomic and Microeconomics policies C. Increasing the amount of money in Circulation and Decreasing the interest rate D. Creating the Monetary and Fiscal Policy Framework 43. What makes Retirement Funding a different need compared to many other needs, like Home Purchase or Education Funding ? A. It is not a Financial Goal B. You cannot get a Loan to fund it C. It is a short term goal D. You do not get any Tax benefits 44. What is the investor’s need during the Accumulation phase while Planning for Retirement? (Accumulation phase is the period of one’s life when one invests on a regular basis to create a corpus for funding retirement needs) A. Drawing regular income from Investments B. Taking Loan against Investments C. Lump sum Withdrawals D. Regular Investments to generate a Corpus 45. Purchasing a Life Insurance policy is an example of ______________. A. Risk Reduction B. Risk Transfer C. Risk Avoidance D. Risk Retention Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official  AN ISO CERTIFIED 9001:2015 COMPANY 46. The rule of 72 indicates approximate time taken for your money to ________________ given the interest rate. A. Double B. Multiply Five Times C. Multiply Four Times D. Half 47. Which of the following regular one can approach in case of a problem with Non - Receipt of Dividend? A. Ministry of Corporate Affairs (MCA) B. Reserve Bank of India (RBI) C. Pension Fund Regulatory and Development Authority (PFRD) D. Securities and Exchange Board of India (SEBI) 48. You received an e-mail informing that you won a lottery of Rs. 1 crore. To receive this lottery amount, the mailer asked you to send details like your name, address, bank account number, net banking id and net banking password. What is the type of e-mail called ? A. Marketing B. Mass Marketing C. Phishing D. Mis - Selling 49. What concept in Investing does Systematic Investment Plan (SIP) help with ? A. Rupees Cost Averaging B. Market Volatility Prediction C. Rupee cost decreasing D. Timing the market perfectly 50. Which of the following Insurance is Necessary by Law ? A. Third Party Liability under Motor Insurance B. Term Life Insurance C. Property Insurance D. Mediclaim Phone : 033-35980441 /8910410753 || Mail : [email protected] || Youtube : Cafden Trading Web: www.cafden.com || Instagram : Cafden_Trading || Telegram : Cafden Official