IC89 Mock Test Sample 4

Q1. Under which form is the Statement of Investment Asset (Life Insurance) prepared?
a) Form 1
b) Form 2
c) Form 3A
d) Form 3B

Q2. __________ represent long-term debt instruments.
a) Equity shares
b) Bonds and Debentures
c) Real Asset
d) Preference shares

Q3. Which funds focus only on stocks from a certain sector?
a) Sector funds
b) Large-cap funds
c) Index funds
d) Equity funds

Q4. Corporate financial management uses financial statement analysis for:
a) Strategic decision making
b) Financial risk analysis
c) Financial planning
d) All of the above

Q5. First step of budgetary control is the __________.
a) Functional responsibility
b) Evaluation of budget
c) Preparation of budget
d) None of these

Q6. An insurer carrying on general insurance business shall comply with:
a) Schedule A
b) Schedule B
c) Schedule C
d) Schedule D

Q7. Which is an international organisation conceived for monetary cooperation?
a) International Monetary Fund
b) Reserve Bank of India
c) Insurance Regulatory and Development Authority
d) None of these

Q8. __________ reflects volatility of return on an investment.
a) Variance
b) Alpha
c) Beta
d) Standard deviation

Q9. Goodwill is one of the __________.
a) Current assets
b) Tangible assets
c) Intangible assets
d) Liquid assets

Q10. Which of the following is the correct process of computation of Return ratio?
a) Net profit income / sales ×100
b) Net Operating Income / Capital employed
c) Net profit before tax / Sales ×100
d) All operating expenses / sales ×100

Q11. Which Insurance policy has no savings elements?
a) Whole life policy
b) Term insurance
c) Endowment policy
d) Pension plans

Q12. Which costs comprise costs in analysis and evaluation of investment?
a) Search cost
b) Explicit cost
c) Implicit cost
d) Information cost

Q13. Select the odd one out among the functions of SEBI.
a) Prohibition of collective investment schemes
b) Prohibition of Insider Trading
c) Prohibition of Unfair Trade Practices
d) Education and Training

Q14. In which equity funds do they primarily invest in shares of well-established companies?
a) Mid cap
b) Small cap
c) Large cap
d) None of these

Q15. Which of the following shall be classified as 'Reserves and Surplus'?
a) Capital reserves
b) Securities premium reserve
c) Debentures redemption reserve
d) All of the above

Q16. What is the mean of the squares of deviations of returns?
a) Rate of return
b) Marketability
c) Variance
d) Tax benefits

Q17. Who has dealt with various aspects related to public disclosure?
a) Insurance Regulatory and Development Authority
b) Reserve Bank of India
c) Securities and Exchange Board of India
d) International Association of Insurance Supervisors

Q18. Which ratios indicate the ability of the firm to meet current liabilities?
a) Profitability ratio
b) Activity ratio
c) Market test ratio
d) Liquidity ratio

Q19. Which activities are the principal revenue-producing activities of a business?
a) Investing activities
b) Financing activities
c) Operating activities
d) Functional activities

Q20. Which of the following is considered as a budget center outside office operations?
a) Fire Department
b) Regional office
c) Engineering Department
d) Marine Department