Most effective GLO_CWM_LVL_1 PDF Dumps For Accomplishment.docx

AAFM

GLO_CWM_LVL_1

Chartered Wealth Manager (CWM) Global

QUESTION & ANSWERS

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QUESTION 1

Wages for the purpose of gratuity payment as per the Act means

A. Basic Pay

B. Basic par and dearness allowance

C. Basic Pay, Dearness Allowance and City compensatory allowance & house rent

D. Emoluments including all allowances, bonus and commission, etc

Correct Answer: B

QUESTION 2

Equity Financing

A. Has to be repaid back

B. Requires collateral

C. Requires interest payment

D. Allows to receive tax free dividends

Correct Answer: D

QUESTION 3

Which of the following statement is true?

A. The Jensen index compares actual performance to the risk-adjusted required performance.

B. The Treynor index assumes that portfolios are not well diversified.

C. The Sharpe index standardizes performance by the portfolio's beta.

D. Option A and B

Correct Answer: A

QUESTION 4

Vehicle finance is made cheaper through .

A. Better insurance cover

B. Special arrangement with manufacturer

C. Navigation system in the car


D. Higher engine capacity

Correct Answer: B

QUESTION 5

Which of the following is true of mortgage?

A. Lender is mortgager

B. Typical of hypothecation

C. Possession handed over when charge created

D. Transfer of interest on specific immoveable property

Correct Answer: D

QUESTION 6

Deduction under section 80QQB is allowed in respect of royalty income to:

A. an individual who is an author of a book

B. an individual who is resident in India and who is an author of a book

C. an individual who is resident in India who is either an author of a book or a joint author of

the book

D. None of These

Correct Answer: C

QUESTION 7

In the context of Organizational Models of banks in Wealth Management, a model in which Private

Banking acts as a peripheral add-on to the core investment banking business is termed as:

A. Hybrid

B. IB dominated

C. Universal

D. None of the above


Correct Answer: B

QUESTION 8

Bond price is inversely related to yields

A. TRUE

B. FALSE

Correct Answer: A

QUESTION 9

serves as a bank for central banks

A. Institute of International Finance

B. IMF

C. Bank for International Settlements

D. All of the above

Correct Answer: C

QUESTION 10

Fact needs analysis and product recommendation form has to be fulfilled if:

A. I only

B. II only

C. Both I and II



Correct Answer: C

QUESTION 11

Banking Ombudsman Scheme is:

A. Bank’s own scheme

B. IBA Scheme

C. Under Banking Regulation Act


Correct Answer: C

QUESTION 12

For making a personal financial statement for a client, the optimum cash levels would be

A. 2-3 months of cash requirement

B. 4-6 months of cash requirement

C. 6-9 months of cash requirement

D. 1 year of cash requirement

Correct Answer: B

QUESTION 13

Which of the following definitions of forms of Money are correct?


A. (a) and (b)

B. (b) and (c)

C. (a) (b) and (c)

D. none of the above

Correct Answer: C

QUESTION 14

A trust which is established by expressions of confidence ,request or desire that property will be

applied for the benefit of a definite person or object is termed as:

A. Express Trust

B. Pre-catory trust

C. Resulting Trust

D. Constructive Trust

Correct Answer: B

QUESTION 15

A mutual fund that invests in Indian Equities, foreign equities, Indian Corporate Bonds, Indian

Government Gilts is subject to the following risks?


A. (a) & (c) only

B. (a), (iii) & (iv) only

C. (iii) & (iv) only

D. (a), (ii), (iii) & (iv)

Correct Answer: D

QUESTION 16

The approved superannuation fund has to deposit all the contributions received from the employer

A. With The Government of India through the Reserve Bank of India

B. In a savings Bank account with the Reserve Bank of India

C. In a savings Bank account with a post office or a Scheduled Bank if they are not invested in any of

the approved investment specified


Correct Answer: C

QUESTION 17

If after the partition of an HUF 2 members became partners in 3 firms on behalf of their respective

HUFs and they also become partners in a fourth firm. The funds were obtained by means of loans

from the other 3 firms. The share incomes of the members from the fourth firm were assessable as

their individual income only.

A. TRUE

B. FALSE

Correct Answer: A


QUESTION 18

Manish has two house properties. Both are self occupied. The annual value of:

A. Both the house is NIL

B. One house shall be NIL

C. No house shall be NIL

D. Option A with certain condition

Correct Answer: B

QUESTION 19

The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to

A. Cancel a health-based exclusion after a symptom-free period

B. Include his parents under the policy

C. Increase cover when a key life event occurs

D. Maintain cover despite a fall in investment value

Correct Answer: C

QUESTION 20

Pension received from a former employer is classified under the head .

A. Capital Gains

B. Gratuity

C. Income from other sources

D. Salaries

Correct Answer: D

QUESTION 21

Mohan is a manager in ABC Co. Ltd. His family consists of his wife and child. It is assumed that his

family needs a minimum of Rs. 10,000 per month to maintain current standard of life in unfortunate

case of demise of Mohan. The interest rate is 6% pa. Calculate how much insurance is required under

income replacement method?


A. 20 lakhs

B. 15 lakhs

C. 25 lakhs

D. 18 lakhs

Correct Answer: A

QUESTION 22

From the following information of assets assets and liabilities, the taxable wealth for:

A. Rs 1,10,00,000&Rs 40,00,000 respectively

B. Rs 1,00,00,000&Rs 40,00,000 respectively

C. Rs 1,10,00,000&Rs 50,00,000 respectively

D. Rs 70,00,000&Rs 40,00,000 respectively

Correct Answer: A


QUESTION 23

PTA stands for

A. Parent Teacher Association

B. Preferential Trading Area

C. Preferential Transportation Assembly

D. Payment Trade Ambit

Correct Answer: B

QUESTION 24

An assessee was allowed deduction of unrealized rent to the extent of Rs. 40,000 in the past although

the total unrealized rent was Rs. 60,000. He is able to recover from the tenant Rs.45,000 during the

previous year on account of such unrealized rent. He shall be liable to tax to the extent of:

A. Rs. 45,000

B. Nil

C. Rs. 25,000

D. Rs. 35,000

Correct Answer: C

QUESTION 25

Accumulation, preservation and distribution are stages of

A. Financial Life cycle

B. Human Life Cycle

C. Human Life Value

D. All of the above

Correct Answer: A

QUESTION 26

A will that can only be made by a soldiers in actual warfare ,or airmmen or mariners at sea is known

as:


A. Mutual Will

B. Contingent Will

C. Privileged Will

D. Concurrent Will

Correct Answer: C

QUESTION 27

The list of managing body needs for be fixed with Registrar of Joint Stock companies

A. Only (i)

B. Only (ii)

C. (i) & (iii)

D. Only (iv)

Correct Answer: C

QUESTION 28

Any income chargeable under the based "Salaries" is exempt from tax under Section 10(6)(viii), if it is

received by any non resident individual as remuneration for services rendered in connection with his

employment in a foreign ship where his total stay in India does not exceed a period days in that

previous year.

A. 90

B. 182


C. 60

D. 120

Correct Answer: A

QUESTION 29

Mr. Bakshi has invested Rs. 25,000/- @ 5% p.a. in a bank deposit. After 5 years rate of interest

changes 6% p.a. computed half yearly. After further period of 2 years rate again changes to 7% p.a.

compounded quarterly. After further 2 years rate again changes to Rs. 8% pa compounded monthly.

What will he get after 10 years from now ?

A. Rs. 45,780/-

B. Rs. 55,563/-

C. Rs. 41,546/-

D. Rs. 44,682/-

Correct Answer: D

QUESTION 30

The use of P/E ratios to select stocks suggests that

A. high P/E stocks should be purchased

B. low P/E ratio stocks are overvalued

C. a stock should be purchased if it is selling near its historic low P/E

D. a stock should be purchased if it is selling near its historic high P/E

Correct Answer: C

QUESTION 31

The length of the insurance industry’s business cycle is shortened because of

A. Regulatory provisions

B. High specialization

C. Easy entry and exit conditions

D. None of these


Correct Answer: C

QUESTION 32

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

Correct Answer: C

QUESTION 33

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


Correct Answer: A

QUESTION 34

Mr. Vivek Kalra deposits Rs.11,00,000 today in an investment that would pay after 6 years Rs. 1,00,000

per year for 5 years and Rs. 1,50,000 for the next 5 years. What would be the balance in the account

after the last payment is made if the ROI is 18% per annum compounded annually.?

A. 2969509

B. 6078097

C. 12832083

D. 11283083

Correct Answer: C


QUESTION 35

Which of the following statement is/are correct?

A. (i) only

B. (ii) only

C. Both (i) & (ii) are correct

D. Both (i) & (ii) are incorrect

Correct Answer: D

QUESTION 36

What do you mean by ‘Mortgage’?

A. To Sell

B. To pledge

C. Type of installment credit


Correct Answer: B

QUESTION 37

Rhona has a daughter Zena five years old. She wants to plan for Zena’s education and has found out

that she would be requiring 2,75,000 at her age 18 and another 4,50,000 on her age 25. She also wants

to have Rs. 10,00,000 for Zena’s Marriage which she expects at the age of 28. She wants to deposit the

entire amount for these expenses today in an account that pays a ROI of 15% per annum compounded

annually. What would this amount be?

A. 40174

B. 27495


C. 144695

D. 112365

Ankur Kalra is 33 years old finance professional. The house hold expenditure of Mr. Kalra is 20,000/-

p.m. to maintain his current living standard. He assumes that his living standard will increase 1.5%

annually until his retirement at 60. His life expectancy is 70 years. At retirement he needs 75% of his

last year’s expenses. Inflation rate for the next 45 years is expected to be 4% p.a. Calculate how

much would Mr. Kalra require in the first year after his retirement, and how much he has to save at

end of every year to accumulate this corpus, if the return on investment is 7% p.a.?

A. Rs. 10,09,656/-, and Rs. 89,508/-

B. Rs. 7,63, 992/- and Rs. 90,550/-

C. Rs. 8,26,912/- and Rs. 85470/-

D. Rs. 9,20,338/- and Rs. 98,862/-

The Portfolio consists of two securities, X and Y in the ratio of 70:30. Given that

and covariance between them is 16%, what is the portfolio risk?

A. 13.77%

B. 8.04%

C. Nil

D. 25%


Correct Answer: B

QUESTION 40

An investor investing Rs. 7,282.58 on March 1, 2012 and getting Rs. 10,000 back on February 28,

2017 would have a yield to maturity (YTM) of %.

A. 6.58

B. 6.55

C. 6.61

D. 6.64

Correct Answer: B

QUESTION 41

The Bretton Woods system was set up on the theory that

A. deficits were temporary and could be financed by international assistance.

B. exchange rates would be used to achieve equilibrium.

C. the gold standard would ultimately be restored.

D. balance-of-payments deficits should be related to decreases in a country’s money supply.

Correct Answer: A

QUESTION 42

What is ‘Mudharabah’

A. Sale

B. Islamic loan transactions

C. Exchange contracts

D. Profit sharing

Correct Answer: D


QUESTION 43

prospectus were issued in order to test the market before finalizing issue size/ price

A. Deemed

B. Shelf

C. Red herring


Correct Answer: C

QUESTION 44

Dinesh is entitled to a basic salary of Rs. 5,000 p.m. and dearness allowance of “Rs. 1,000 per month,

40% of which forms the part of the retirement benefits. He is also entitled to HRA of Rs. 2,000 p.m.

He actually pays Rs. 2,000 p.m. as rent for a house in Delhi. Compute the taxable HRA

A. Rs. 17,520

B. Rs. 32,400

C. Rs. 18,000

D. Rs. 24,000

Correct Answer: A

QUESTION 45

How many types of power of attorney are there?

A. One

B. Two

C. Three

D. Four

Correct Answer: B

QUESTION 46

A Foreign Bank is one

A. Whose most of the branches is situated outside India


B. In which at least 40 % shares are held by non resident Indians

C. Which is incorporated outside India

D. None of these

Correct Answer: C

QUESTION 47

What is the effective rate of interest for 10% compounded monthly, quarterly, semi-annually? A.

10.47%, 10.38%, 10.25%

B. 10.45%, 10.40%, 10.23%

C. 10.42%, 10.38%,10.25%

D. 10.47%, 10.36%, 10.25%

Correct Answer: A

QUESTION 48

Income from which trust is added to the beneficiary’s taxable income?

A. Private trust

B. Charitable

C. Religious


Correct Answer: A

QUESTION 49

Which of the following is / are RBI conditions applicable for banks declaring dividends?

A. To be paid out only from current year profits

B. Minimum capital adequacy of 9% to be maintained

C. Net NPAs to be below 7%

D. All of the above


Correct Answer: D

QUESTION 50

Consider the following information:

Which of the following statements is/are true?


A. Only II

B. Only III

C. Only II


Correct Answer: C


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