IC89 Mock Test Sample 3
Management Accounting and financial analysis help organizations evaluate performance, manage risks, and make investment decisions. Ratio analysis, solvency analysis, and financial statement analysis are important tools in non-life insurance companies. Financial systems include banking institutions, financial markets, and interest-bearing assets. Risks such as interest rate risk, market risk, and financial risk affect investments and securities. Endowment plans provide guaranteed benefits under various policies. Futures and forward contracts are commonly used derivative instruments. Mutual fund investors are called unit holders, while exposure norms regulate insurance company investments. Budgetary control systems help establish standards and ensure organizational efficiency and wealth maximization in modern financial management.
Q1. __________ in non-life insurance company is a comparative analysis tool.
a) Profit analysis
b) Solvency analysis
c) Financial statement analysis
d) Ratio analysis
Q2. Which of the following is the correct formula for spread?
a) Spread% = (Bid + Offer) / Bid × 100
b) Spread% = (Bid × Offer) / Bid × 100
c) Spread% = (Bid - Offer) / Bid × 100
d) Spread% = (Bid + Offer) / Offer × 100
Q3. Which system provides means and ways to determine prices internationally?
a) International Monetary system
b) International Financial system
c) International Regulatory system
d) None of these
Q4. Which schedule contains general instructions for preparation?
a) Schedule I
b) Schedule II
c) Schedule III
d) Schedule IV
Q5. The internal financial system covers and includes which of the following?
a) Interest and return-bearing assets
b) Bank and Non-Bank financial institutions
c) Financial markets for international trade
d) All of the above
Q6. Which of the following is an example of Systematic risk?
a) Business risk
b) Financial risk
c) Interest Rate risk
d) Default risk
Q7. What may be defined as a set of interrelated elements?
a) Information
b) Concepts
c) System
d) Integrity
Q8. Under which Endowment plan is the sum assured guaranteed?
a) Traded Endowment
b) Modified Endowment
c) Traditional with profits endowments
d) Full endowment
Q9. What was the Minimum Fund Investment in AIF?
a) INR 50 million
b) INR 100 million
c) INR 150 million
d) INR 200 million
Q10. __________ enables laying down targets and standards in management.
a) Forecast system
b) Organisational system
c) Budgetary control system
d) Decentralisation system
Q11. __________ per share of common stock is the shareholder's equity value.
a) Par value
b) Book value
c) Scrap value
d) Final value
Q12. A __________ tax benefit refers to relief from taxation.
a) Continuing
b) Initial
c) Terminal
d) None of these
Q13. A __________ is a contract to buy or sell the underlying asset.
a) Forward
b) Open
c) Lock
d) Futures
Q14. As per disclosures forming part of Financial Statements, which is included?
a) Partly-paid up investment
b) Underwriting commitments outstanding
c) Claims under policies
d) All of the above
Q15. How is fixed assets turnover ratio calculated?
a) Net sales / Working Capital
b) Net sales / Fixed assets
c) Net sales / Total assets
d) Net sales / Capital Employed
Q16. Which risk arises due to fluctuations in the prices of securities?
a) Interest rate risk
b) Financial risk
c) Default risk
d) Market risk
Q17. What is a contract written between two parties and traded privately?
a) Foreign Market
b) Foreign Exchange rate
c) Derivative security
d) Forward
Q18. The investors of Mutual funds are known as __________.
a) Customer
b) Agents
c) Unit-holders
d) Policyholders
Q19. The exposure norms for investment by insurance companies are:
a) 5% of outstanding equity shares
b) 10% of outstanding equity shares
c) 15% of outstanding equity shares
d) 20% of outstanding equity shares
Q20. In which phase was wealth maximization emphasized?
a) Critical phase
b) Traditional phase
c) Modern phase
d) None of these
