Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021

2. The safer , easier way to help you pass any IT exams. 1.Notice of loss should be given to the insurer within ________days of the event of loss. A. 30 B. 15 C. 7 D. 21 Answer: C 2.Which of the following is/are the basic classification of financial risk? A. Speculative & Pure Risk B. Pure and Personnel Risk C. Static and Dynamic Risk D. All of the above Answer: A Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 C. No, because it has not been published D. None of the above Answer: B 3.GDP at factor cost is equal to ________ A. GDP at market price – indirect taxes + subsidies B. GNP at market prices – indirect taxes + subsidies C. GDP at market price + indirect taxes + subsidies D. GDP at market price + indirect taxes - subsidies Answer: A 4.In addition to the contribution employer has to pay ______________% of wages as administration charges. A. 0.17% B. 0.18% C. 0.10% D. None of these Answer: C 5.X, a shopkeeper says to Y, who manages his business – “Sell nothing to Z unless he pays you ready money, for I have no opinion of his honesty”. Can Z claim against X for defamation? A. Yes, he can B. No, if the statement has been said in the good faith 6.Cash Flow is a tool that is more useful for A. Short period financial analysis B. Long period financial analysis C. It is period agnostic D. None of the above Answer: A 2 / 12

3. The safer , easier way to help you pass any IT exams. 7.The markets for funds traded in currencies other than the currency of the trading country are referred to as A. off-shore banking centres. B. international financial centres. C. the world market. D. Eurocurrency markets. Answer: D 8.Which among the following is not an advantage of setting up a trust? A. Allows for orderly distribution of assets and income following death B. Ensures that the estate poses to the intended beneficiaries C. Tax planning D. Protects against money laundering Answer: D Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 C. SBI Mutual Fund D. LIC Mutual Fund Answer: B 9.How many sections are there in Householder’s Insurance Policy? A. 15 B. 10 C. 12 D. 14 Answer: B 10.The standard deviation of the returns of a portfolio of securities will be _________ the weighted average of the standard deviation of returns of the individual component securities. A. Equal to B. Less than C. Greater than D. Less than or equal to (depending upon the correlation between securities) Answer: D 11.Which of the following Mutual Funds was not set up within the Phase 2: 1987-1993? A. Canbank Mutual Fund B. Kothari Pioneer Mutual Fund 12.SRO stands for A. Supervisor Range Operations B. Statutory Regulation Offer C. Self Regulatory Organization D. Service Request Order Answer: C 3 / 12

4. The safer , easier way to help you pass any IT exams. 13.Which of the following is not the non- formal sources of law? A. Custom B. Equity C. Precedents D. Standards of Justice Answer: C 14.If a testator makes a will ‘to induce another person to make him comply with his (testators) wish’ but does not have any testamentary operation or intention, then this will is called as A. Concurrent will B. Sham will C. Disguise will D. Duplicate will Answer: B Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 D. No rounded off is done Answer: A 15.Unabsorbed depreciation can be carried forward for ____________. A. 8 Years B. 4 Years C. Indefinite D. None Answer: C 16.Which of the following is allowed as deduction from net annual value of a property? A. Repairs & collection charges B. Insurance premium C. Interest on loan borrowed for repairs D. All the above Answer: C 17.Any amount payable and the amount of refund due under the Income Tax Act,1961 shall be rounded off to the nearest multiple of..........? A. Rs. 10 B. Rs. 1 C. Rs. 100 18.__________ records net change in ownership of foreign assets A. Capital Account B. Current Account C. Official Reserve Account D. Balance of Payments Answer: A 4 / 12

5. The safer , easier way to help you pass any IT exams. 19.A muslim gentleman can leave his will, bequeathing all his properties to someone often than his legal heirs to the extent of……………. A. His wish B. A small portion C. One third D. One half Answer: C 20.Which of the following is not an essential element of a trust? A. A trustee B. A beneficiary C. An administrator D. A personal obligation Answer: C Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 A. Reading charts of the stock B. Reading of company’s financials C. understanding the volume associated with stock D. None of the above Answer: B 21.The portfolio manager adds new stock to a portfolio. The stock has the same standard deviation as the existing portfolio but a correlation of coefficient with the existing portfolio that is less than +1. What effect will adding the new stock have on standard of the revised portfolio? A. The standard deviation will increase B. The standard deviation will decrease C. The standard deviation will be unaffected D. Impossible to say without more information Answer: B 22.Urban land means land situated in area not being more than ………………from local list of local authority as notification in official Gazette A. 5 km B. 8 km C. 10 km D. 20 km Answer: B 23.Fundamental Analysis involves 24.As per rule 69 of doubling, what is the doubling period if rate of interest is 9% A. 8.01 years B. 8 years C. 8.4 D. 8.1 5 / 12

6. The safer , easier way to help you pass any IT exams. Answer: A 25.Mathematically the Efficient Frontier is the intersection of the Set of Portfolios with ....…. Variance and the Set of Portfolios with ……. Return. A. Maximum, minimum B. Minimum, maximum C. Minimum, minimum D. None of the above Answer: B 26.In case of resident of India, income from property situated in foreign country is taxable A. When it is received in India B. When it is brought in India or not C. Whether it is received in India or not D. Not taxable Answer: C Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 wholly through males. A. TRUE B. FALSE Answer: A 27.AUM stands for A. Asset Utilization Model B. Asset Under Management C. Area Under Management D. None of the above Answer: B 28.Once the client accepts the proposal to prepare a wealth plan what is the next thing done by a wealth manager? A. The client signs the authority letter B. The client signs the acknowledgment C. The wealth manager makes an appointment with the client to present a plan D. All of the above Answer: D 29.A person is said to be Agnate of another if the two of them are related by blood or adoption entirely or 30.Which of the following is not correct in relation to ETFs? A. ETFs provide exposure to an Index or a basket of securities that trade on the exchange like a single stock B. ETFs can be bought and sold on the exchange at prices that are usually closer to the actual intra –day NAV of the scheme C. ETFs trade very close to their actual NAVs 6 / 12

7. The safer , easier way to help you pass any IT exams. D. Intra Day trading of ETFs is very expensive Answer: D 31.Types of shares are A. Preference shares B. Bank deposits C. Debentures D. All of the above Answer: A 32.A “Mass Affluent” segment client has investible assets worth of A. $50,000 B. $100,000 C. $200,000 D. None of the above Answer: B Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 33.A kind of lease in business organisations wherein the lesssor and lessee agree to a payment schedule (normally some months) have no payment and penalty A. Sub-lease B. Pre-Paid Purchase Lease C. Skip Lease D. True Lease Answer: C 34.Interest rate charged are higher in …………… A. Prime mortgage B. Sub prime mortgage C. Simple mortgage D. None of the above Answer: B 35.Which of the following measure is most widely used as an indicator of inflation? A. GDP B. WPI C. CPI D. GDP implicit price deflator Answer: B 36.What is the minimum amount one can deposit in a PPF account in a financial? A. Rs. 400 per annum B. Rs. 500 per annum C. Rs. 100/-per annum D. Rs. 5/-per annum 7 / 12

8. The safer , easier way to help you pass any IT exams. Answer: B 37.Stock dividends cause A. The price of a share of stock to rise B. The price of a share of stock to fall C. The value of the firm to rise D. The value of the firm to fall Answer: B 38.Preparation of budget of a client is like doing _______________ for a patient A. A Lipid Profile B. ECG C. X-Ray D. All of the above Answer: C Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 39.Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A. commodity markets. B. fund-available markets. C. derivative exchange markets. D. financial markets. Answer: D 40._______ is an unconditional written order to pay money. A. Bill of Exchange B. Cheque C. Both of the above D. None of the above Answer: C 41.Which one of the following sections of the Transfer of Property Act, defines ’Notice’ A. Section 2 B. Section3 C. Section 5 D. Explanation H of Section 3 Answer: B 42.In “Teenage Years” life stage, one learns about ___________ A. Budgeting B. Earned income C. How money makes money D. All of the above Answer: B 8 / 12

9. The safer , easier way to help you pass any IT exams. 43.How many registered offices can a company have? A. Two. B. Three. C. one office in each state. D. One office totally. Answer: D 44.“Early accumulation” life stage is normally during ______ A. 12- 19 years B. Our 20s C. 30-40 D. Retirement years Answer: C Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 45.Which of the following statement is true? A. Ordinary share capital is a high-risk high reward source of finance for investors B. Companies can freely price their share issues. C. Book building is a process to elicit demand for and price of, securities D. All of the above Answer: D 46.Partition can be effected orally & there is no requirement in law that the partition must the evident try a written agreement A. TRUE B. FALSE Answer: A 47.What is ‘Mudharabah’ A. Sale B. Islamic loan transactions C. Exchange contracts D. Profit sharing Answer: D 48.If POA in respect of in moveable property of value more than ………………….it must be registered A. Rs. 50 B. Rs. 100 C. Rs. 50000 D. Rs. 100000 Answer: B 49.Surender the driver causes injuries to a pedestrian by rash driving of car. The injured victim had to spend Rs.1000 in treating his injuries. Surender ‘s act has created liabilities under 9 / 12

10. The safer , easier way to help you pass any IT exams. A. Common law B. Contract C. Statue and Common law D. Statute only Answer: C 50.First step in developing a Wealth Management Plan is A. Identify goals and objectives B. Identify and clarify the current situation C. Analyze problems and solutions D. Implementation of solutions Answer: B Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 51.Merton’s theory is ___________ A. Of continuous time finance B. a link from Arrow-Debreu world to real world C. about dynamic replication D. All of the above Answer: D 52.Which of the following is not a business risk? A. Change of business cycles B. Change in Government policy C. Change in Government Law which affecting a particular industry D. Changes in Interest Rate Answer: D 53.According to the capital asset pricing model, the expected rate of return on any security is equal to __________. A. [(the risk-free rate) + (beta of the security)] x (market risk premium) B. (the risk-free rate) + [(variance of the security's return) x (market risk premium)] C. (the risk-free rate) + [(security's beta) x (market risk premium)] D. (market rate of return) + (the risk-free rate)] Answer: C 54.Multi period hedging is ________ A. A way to manage qualitative risk over time B. A way to manage market risk over time C. A way to manage sentimental risk over time D. None of the above Answer: B 55.What is the minimum paid up capital needed to form a public limited company? A. No Minimum requirement 10 / 12

11. The safer , easier way to help you pass any IT exams. B. Rs. 100000 C. Rs. 500000 D. Rs. 1000000 Answer: C 56.For a “single income family” priority is on A. Protecting income via a term plan B. Investing in commodities to grow wealth C. Investing in Mutual Funds to grow wealth D. None of the above Answer: A Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 which the amalgamation or demerger takes place C. Not deductible but is eligible to be treated as an intangible asset in respect of which depreciation can be claimed D. Fully deductible as revenue expenditure in the year in which it is incurred. Answer: B 57.Which of the following are the basic requirements for an existence of an HUF? A. Only I and II B. Only II and III C. All of these D. Only I and III Answer: C 58.If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is A. Not allowable as a deduction in computing profits and gains of business or profession B. Allowed as a deduction spread over five successive previous year beginning with the previous year in 59.Government has changed certain industries related regulation in Parliament, it is an example of: A. Interest rate risk B. Political risk C. Market risk D. None of the above 11 / 12

12. The safer , easier way to help you pass any IT exams. Answer: B 60.IFSC stands for: A. Inter-bank Financial Sector Code B. Inter-bank Funds Settlement code C. Inter-bank Financial Service Code D. None of the above Answer: B Chartered Wealth Manager GLO_CWM_LVL_1 Practice Test V8.02 Killtest 2021 12 / 12