SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 46. What is the role of the Pension Fund Regulatory and Development Authority (PFRDA)?
- To provide loans to retirees
- To promote, develop, and regulate the pension sector in India
- To manage the stock market investments
- To handle only government employee pensions
Q 47. Why is retirement planning important?
- It guarantees a job after retirement
- It ensures a comfortable retirement life with financial security
- It provides immediate financial relief
- It offers tax benefits during working years
Q 48. What is a key benefit of starting retirement savings early, such as at age 25?
- Immediate access to funds
- Ability to retire by age 35
- More time to invest and grow savings over 35 years
- Lower investment risks
Q 49. Why should you set aside money for medical expenditure and emergencies after retirement?
- To avoid tax penalties
- To maintain financial security and meet unforeseen needs
- To increase investment returns
- To ensure eligibility for government benefits
Q 50. How often should you review your retirement financial plan?
- Only at retirement age
- Every year
- Every five years
- Never
Q 51. What could happen if you dip into your retirement savings before retirement?
- You will avoid taxes
- You will earn higher interest rates
- Your retirement corpus will be inadequate
- You will avoid market risks
Q 52. What is a key feature of retirement planning regarding setting financial goals?
- Avoid investing in high-risk options
- Allocate savings towards important goals like children's education and marriage
- Invest only in government securities
- Avoid setting any specific goals
Q 53. What is the importance of understanding the risks, costs, and liquidity of your investments?
- To maximize tax benefits
- To avoid legal issues
- To ensure that the financial plan meets its objectives
- To eliminate investment risks
Q 54. What does not need to be opened separately for receiving pension?
- A new insurance policy
- A separate pension account
- A new bank account
- A new investment fund
Q 55. What document must be submitted to the bank branch every November for pensioners?
- Birth certificate
- PAN card
- Life Certificate
- Passport
Q 56. What digital tool can be used to submit the Life Certificate using Aadhaar and mobile?
- e-PAN
- Jeevan Pramaan
- DigiLocker
- eAadhaar
Q 57. What is a benefit of the National Pension System (NPS) for the unorganized sector workers?
- Immediate pension upon enrollment
- Mandatory government job placement
- Voluntary basis enrollment for retirement savings
- Free health insurance
Q 58. What should be done to ensure a retirement plan meets its objectives over time?
- Ignore market fluctuations
- Review and track the plan regularly
- Invest only in low-risk options
- Rely solely on government pensions
Q 59. What happens if you spend money from your retirement kitty for present needs?
- Increases retirement corpus
- Reduces retirement corpus significantly
- Guarantees higher returns
- Ensures financial stability
Q 60. What is essential to do when planning for retirement in terms of emergencies?
- Ignore emergency funds
- Use retirement savings for emergencies
- Set aside money specifically for emergencies
- Avoid thinking about emergencies