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60MCQ on Wealth
Standard deviation measures
Which is a type of bond?
60MCQ on Wealth
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1
Which is a type of bond?
Municipal bond
Government bond
Corporate bond
All of the above
2
Standard deviation measures
Total risk
Average return
Only tax
Only expenses
3
Mutual fund growth option means
Only bonds
No payouts, compounding
Regular dividends
Only gold
4
What is the major advantage of equities?
High liquidity and potential for high returns
Fixed returns
No risk
Guaranteed dividends
5
Dividend received from equity mutual funds is
Only for NRIs
Fully taxable
Only for HNIs
Exempt
6
Insurance is primarily used for
Tax evasion
Only investments
Only loans
Risk transfer
7
Sharpe ratio is return per unit of
Only alpha
Beta
Only expenses
Total risk
8
Debt securities are valued using
Only maturity
Discounted cash flows
Face value
Only coupon rate
9
What is the primary role of a financial planner?
Sell insurance
Create effective financial plans
Prepare tax returns
Approve loans
10
Portfolio management focuses on
Only gold
Speculation
Diversification
Only equity
11
Portfolio risk (β) increases with
High return
Larger portfolios
Longer duration
Increased trading volume
12
Which derivative is considered riskiest?
Fixed deposits
Futures
Options
Swaps
13
Portfolio approach to investing is focused on
Only gold
Diversification
Speculation
Only bonds
14
Which asset is considered a safe haven in crisis?
Bonds
Equity
Real estate
Gold
15
Alpha in portfolio management means
Only risk
Only tax
Excess return over benchmark
Only expenses
16
Wealth tax in India is
2%
1%
5%
Abolished
17
Which is a fundamental valuation approach?
Price charting
Dividend discount model
Moving average
Only NAV
18
What is the primary risk in bonds?
All of the above
Default risk
Interest rate risk
Inflation risk
19
Which is a component of wealth management?
All of the above
Protection
Tax minimization
Accumulation
20
Portfolio management services provide
Personalized portfolios
Only mutual funds
Only insurance
Only loans
21
Hedge funds are characterized by
Only insurance
High leverage
No risk
Only bonds
22
Which is NOT a scope of wealth management?
Tax minimization
Protection
Cooking meals
Accumulation
23
HNWI stands for
High national wealth industry
High national worth industry
High-net-worth individuals
High-net-worth industries
24
Venture capital funds invest mainly in
Gold ETFs
Government bonds
Unlisted companies
Listed companies
25
Structured products combine
Only debt
Debt and equity
Only gold
Only equity
26
Technical analysis uses
Price and volume data
Only ratios
Only balance sheets
Only dividends
27
Fundamental analysis focuses on
Only news
Company financials
Price charts
Only volumes
28
Fiscal deficit means
Only taxes
Govt. spends less than income
Govt. spends more than income
No spending
29
Risk profiling helps in determining what?
Tax slab
Insurance claim
Loan amount
Asset allocation
30
Which income is exempt from tax in India?
Salary
Bonus
Agricultural income
Interest
31
Income tax slabs are based on
Age
Income level
Only expenses
Only gender
32
Estate planning is important for
Only loans
Tax savings
Only insurance
Wealth transfer
33
The CAPM formula is
R = Rf + β(Rm - Rf)
R = β + Rf
R = Rm - Rf
R = Rf + Rm
34
Financial literacy is the ability to
Only invest in gold
Only pay taxes
Only save money
Understand money
35
Who banned entry load on mutual funds in India?
IRDA
RBI
SEBI
IRMA
36
Long-term capital gain on equity is taxed at
0%
10%
30%
15%
37
Mutual funds pool money to invest in
Multiple asset classes
Only gold
Only real estate
Only stocks
38
Beta measures
Only return
Systematic risk
Tax rate
Only liquidity
39
Which is a leading economic indicator?
Last year’s GDP
Old currency notes
Past inflation
Stock market index
40
What is the primary risk in equity investment?
Market risk
Liquidity risk
Inflation risk
Credit risk
41
Asset allocation is mainly based on which factor?
Income only
Risk profile
Age only
Gender
42
Which is a type of equity exposure?
Only bonds
Passive
Active
Both 1 and 2
43
The risk-return framework is used to
Only buy gold
Ignore risk
Optimize returns for given risk
Maximize risk
44
Currency exchange rate changes affect
Only importers
Only cash
Only exporters
International investments
45
Diversification in portfolio management aims to
Increase risk
Reduce risk
Reduce liquidity
Increase taxes
46
Which investment provides fixed returns and tax benefits in India?
Derivatives
Real estate
PPF
Equity mutual fund
47
Interest rate risk affects which asset class most?
Gold
Insurance
Debt securities
Real estate
48
Which bond offers tax-free interest in India?
Corporate bonds
Municipal bonds
G-Secs
PPF
49
Which is NOT a step in the financial planning process?
Cooking meals
Data gathering
Asset allocation
Plan implementation
50
Securities Transaction Tax (STT) is levied on
Fixed deposits
Gold
Insurance
Equity transactions
51
Which bond carries the lowest risk?
Junk bond
Government bond
Convertible bond
Corporate bond
52
Which is NOT a derivative product?
Swaps
Futures
Options
Mutual funds
53
Treynor ratio uses which risk measure?
Beta
Only alpha
Standard deviation
Only NAV
54
The wealth cycle includes which of the following phases?
Accumulation
Only retirement
Both 1 and 2
Distribution
55
Which instrument has limited downside risk?
Stock investment
Futures
Option seller
Option buyer
56
Which is a derivative product?
Recurring deposit
Savings account
Futures
Fixed deposit
57
Section 80C provides deduction for
Car loan
Only gold
Only rent
Home loan principal
58
Economic cycles impact wealth management by affecting
Asset prices
Only taxes
Only insurance
Only loans
59
Asset allocation can be
Both 1 and 2
Only random
Strategic
Tactical
60
Fixed deposit interest is taxed as
Capital gain
Agricultural income
Exempt
Income from other sources
