Paper/Subject Code: 46009/Finance: Wealth Management
TYBMS SEM : 5
Finance :
Wealth Management
(Most Imp Objective Questions with Solution)
Note:
1) All questions are compulsory subject to internal choice.
2) Figures to the right indicate full marks.
3) Use of simple calculator is allowed
November 2018
Q1(A) Choose the correct alternative and rewrite the sentence. (Any 8) (8)
1. ________ is Defined as a relationship between an advisor and individual or a household.
A) Wealth Management
B) Investment Management
C) Financial Advisory
D) None of the above
2. Wealth management include _______.
A) Wealth accumulation and Development
B) Wealth Protection
C) Tax minimization Strategies
D) All of the above
3. ________ of the financial plans often requires discipline and perseverance.
A) Execution
B) Monitoring
C) Demonstrating
D) None of the above
4. Yield curve refers to _______.
A) Demand curve
B) Upward Sloping curve
C) Downward sloping curve
D) Lined at plots invest area.
5. ________ applies to debt investment such as bonds.
A) Credit risk
B) Debit risk
C) Planned risk
D) None of the above
6. Health Insurance premium provide tax exemption Under section _________.
A) 80D Income Tax
B) 80C Income Tax
C) 80G Income Tax
D) 80A Income Tax
7. SIP stands for ________
A) Systematic Interest plan
B) Systematic innovation plan
C) Systematic Investment Plan
D) None of the above.
8. ________ is the difference between assets and liabilities of an individual or a company.
A) financial ratios
B) Fixed assets
C) Net worth
D) Goodwill
9. TDS stands for ________.
A) Tax deducted at source
B) Tax deducted at statute
C) Tax deducted at system
D) Tax deducted at strategy
10. A ________ is one used to invest and disburse money in tax favour retirement plan.
A) Pure lifetime annuity
B) Non-qualified annuity.
C) Qualified annuity
D) Lifetime annuity
QI(B) State whether the following statements are True or False. (Any 7) (7)
1. Wealth manager usually in fiduciary position when managing monies of their clients especially in portfolio management service.
Ans: True
2. An interest rate is often expressed as an annual percentage of the principle.
Ans: True
3. Money back policy offers the payment of partial survival benefits.
Ans: True
4. Life insurers are also known as health insurers.
Ans: False
5. Bonds are sometimes called fixed saving investments.
Ans: False
6. Assets allocation overtime is called as rebalancing.
Ans: True
7. CAGR return is same as Holding period return.
Ans: False
8. TDS is based on the principle "pay as you earn".
Ans: True
9. Total income is arrived after making various deduction from gross total income.
Ans: True
10. Any pension system comprises a two-pillar system.
Ans: False
April 2019
Q.1. (a) Multiple Choice Questions: (any 8) (08)
1) The goal of wealth management is to sustain & grow ________ term wealth.
(a) Long term
(b) Short term
(c) Medium term
(d) None of the above
2) Yield curve refers to ________.
(a) Demand Curve
(b) Upward sloping curve
(c) Downward sloping curve
(d) A line that plots interest rates
3) Medical Insurance is offered by _______.
(a) Banks
(b) Life Insurers
(c) Non life insurers.
(d) All of the above
4) ________ applies to debt investments such as bonds.
(a) Credit risk
(b) Debit risk
(c) Planned risk
(d) Unplanned risk
5) TDS means _______
(a) Tax demanded statutorily
(b) Tax demanded subsequently
(c) Tax deducted at source
(d) Tax deducted at statute
6) Deduction for interest on higher education can be claimed under ________.
(a) Sec 80C
(b) Sec 80D
(c) Sec 80E
(d) Sec 80G
7) When 2 or more persons join hands for common actions with common objectives are called as _______.
(a) Body of Individuals
(b) Firms
(c) Company
(d) Association of Persons
8) _______ involves an analysis of various choices you can make today to help provide for your financial future.
(a) Cash budget
(b) Cash flow
(c) Retirement planning
d) Financial Priorities
9) _______ is one of the most preferred tax planning instrument in India as it's a Government scheme.
(a) PF
(b) PPF
(c) FD
(d) Life Insurance plan
10) Wills which are written entirely by hand of the testator are called as _______ Wills.
(a) Sham
(b) Concurrent
(c) Holograph
(d) Calligraph
(b) State whether the following statements are true or false: (any 7) (07)
1) A code of ethics issued by a business is a particular kind of policy statement.
Ans: True
2) The yield curve is flat when yields of all maturities are close to each other.
Ans: True
3) Life insurers are also known as health insurers.
Ans: False
4) Liquidity risk is being able to sell your investment at a fair price.
Ans: False
5) Longetivity risk is the risk of outliving your savings.
Ans: True
6) Net worth is Assets + Liabilities.
Ans: False
7) Total Income is derived after making various deductions from GTI u/s 80C&801
Ans: True
8) Retirement planning takes into account all emergencies.
Ans: False
9) Lifetime annuity pays an income for a specified period of time say 10 years.
Ans: False
10) ULIP are policies that combine risk coverage with investing in stock/debt market.
Ans: True
November 2019
Q.1. (A) Match the following: (Any 8): (08)
Column "A" | Column "B" |
1. Interest on Higher Educational loan | a. Upward Sloping |
2. Housing Loan Installment | b. Downward Sloping |
3. Normal Yield Curve | c. Deduction u/s 80D |
4. Inverted Yield Curve | d. Deduction u/s 80E |
5. Medical Insurance Premium | e. Deduction u/s 80C |
6. Earning Capacity of an Individual | f. Human Life Value |
7. Objectivity and Competence | g. Principle of Wealth Creation |
8. Pay Yourself First | h. Principle of Insurance |
9. Principle of Indemnity | i. Total Assets - Total Liabilities |
10. Net Worth | j. Code of Ethics For Wealth Managers |
Ans:
Column "A" | Column "B" |
1. Interest on Higher Educational loan | d. Deduction u/s 80E |
2. Housing Loan Installment | e. Deduction u/s 80C |
3. Normal Yield Curve | a. Upward Sloping |
4. Inverted Yield Curve | b. Downward Sloping |
5. Medical Insurance Premium | c. Deduction u/s 80D |
6. Earning Capacity of an Individual | f. Human Life Value |
7. Objectivity and Competence | j. Code of Ethics For Wealth Managers |
8. Pay Yourself First | g. Principle of Wealth Creation |
9. Principle of Indemnity | h. Principle of Insurance |
10. Net Worth | i. Total Assets - Total Liabilities |
Q.1 (B) State whether the following statements are True or False (any 7): (07)
1) Business loss cannot be set off against salary income.
Ans : True
2) Yield refers to the annual return on an Investment.
Ans : True
3) Human Life Value concept deals with human capital.
Ans : True
4) CAGR return is same as Holding Period Return.
Ans : False
5) Insurer is the one who undertakes the responsibility of risks.
Ans : True
6) Health insurance policies are not issued for less than one year period.
Ans : False
7) Inflation rate has direct impact on wealth creation.
Ans : True
8) MIS provides regular income to the investors.
Ans : True
9) Long term capital loss cannot be set-off against short term capital gain.
Ans : True
10) Deduction for donation to a charitable trust can be claimed u/s 80G.
Ans : True
November 2022
Q.1. (a) Multiple Choice Questions: (any 8) (08)
1) ________ defines as a relationship between an advisor and individual or a household.
(a) Wealth Management
(b) Investment Management.
(c) Financial Management
(d) Taxation Management
2) The yield curve is _______ when yields of all maturities are close to one another.
(a) Flat
(b) Upward sloping
(c) Downward sloping.
(d) Humped
3) The risk of loss in the purchasing power can be rise is known as _______.
(a) Longevity Risk
(b) Inflation Risk
(c) Reinvestment Risk
(d) Foreign Investment Risk
4) Interest on higher educational loan can be claimed for deduction under _______
(a) 80C
(b) 80D
(c) 80E
(d) 80U
5) ________ refers to annual return on investment.
(a) Credit
(b) Yield
(c) HLV
(d) Commission
6) Deduction for handicap dependent relative can be claimed under section _______
(a) Sec 80C
(b) Sec 80D
(c) Sec 80DD
(d) Sec 80U
7) HLV stands for _________.
(a) Human Life Volume
(b) Huge Life Value
(c) Human Life Value
(d) Human Life Venture
8) _______ insurance principle means both the insured and the insurer should have faith in each other.
(a) Principle of Contribution
(b) Principle of Indemnity
(c) Principle of utmost good faith
(d) None of the above
9) ________ is lesser than Nominal return.
(a) Real return
(b) Capital investment return
(c) Inflation Adjusted return
(d) Normal return
10) A ________ is one used to invest and disburse money in tax favour retirement plan.
(a) Non-qualified Annuity
(b) Qualified Annuity
(c) Lifetime Annuity
(d) Pure lifetime Annuity
(b) State whether the following statements are true or false: (any 7) (07)
1) Long term capital loss cannot be set off against short term capital gain.
Ans: False
2) Insurance is a device to transfer the risk/ losses from the insured to the insurer.
Ans: True
3) Ratio analysis is an important technique of financial statement analysis.
Ans: True
4) Employee Provident fund is a retirement benefit applicable only to salaried employees.
Ans: True
5) Investment in infrastructure bonds can be claimed for deduction under section 80C.
Ans: False
6) Foreign Investment risk refers to the risk of loss that arises when investing in foreign countries.
Ans: True
7) A Wealth Manager should not act as a Salesman but as an Advisor.
Ans: True
8) Stock is not a current asset,
Ans: False
9) Interest is the cost of owned money.
Ans: False
10) SIP stands for systematic interest plan.
Ans: False
April 2023
Q.1. (a) Multiple Choice Questions: (any 8) (08)
1) SIP stands for _________.
(a) Systematic interest plan
(b) Systematic investment plan
(c) Systematic innovation plan.
(d) Systematic inclination plan.
2) Normal yield curve is ________.
(a) Upward sloping curve
(b) Humped curve
(c) Downward sloping curve
(d) A line that plots interest rates
3) TDS means _________
(a) Tax deducted at source
(b) Tax deducted at start
(c) Tax deducted at sum
(d) Tax deducted at system
4) Credit risk applies to debt investments such as _________
(a) Shares
(b) Bonds
(c) Mutual Funds
(d) Gold
5) Deduction u/s 80 D for senior citizens ________
(a) 20,000
(b) 25,000
(c) 50,000
(d) 75,000
6) Deduction for self disability can be claimed under ________.
(a) Sec 80C
(b) Sec 80D
(c) Sec 80E
(d) Sec 80U
7) _______ is invalid in the eyes of law.
(a) Mutual
(b) Sham
(c) Duplicate
(d) Concurrent
8) _______ has direct impact on wealth creation.
(a) Economic outlook
(b) Income rate
(c) Interest rate
(d) Erratic cashflows
9) _______ is one of the most preferred tax planning instrument in India as it's a Government scheme.
(a) PF
(b) PPF
(c) FD
(d) Life Insurance plan
10) _______ = Assets - Liabilities
(a) Balance Sheet
(b) Net Worth
(c) P&L
(d) Investment
(b) State whether the following statements are true or false: (any 7) (07)
1) TDS is based on the principle of pay as you earn.
Ans: True
2) Hostility is a code of ethic.
Ans: False
3) Hindu undivided family is not defined in Income Tax Act.
Ans: False
4) Life insurers are not health insurers.
Ans: False
5) Longetivity risk is the risk of outliving your savings.
Ans: True
6) Travel insurance is a type of general insurance.
Ans: True
7) Issue of new shares for cash results in Cash inflow.
Ans: True
8) Retirement planning takes into account all emergencies.
Ans: False
9) House property loss can be set off against salary income.
Ans: True
10) Unemployment is one of the most popular lagging indicator,
Ans: True
November 2023
Q.1. (a) Multiple Choice Questions: (any 8) (08)
1) SIP stands for _________.
(a) Systematic interest plan
(b) Systematic investment plan
(c) Systematic innovation plan.
(d) Systematic inclination plan.
2) Normal yield curve is ________.
(a) Upward sloping curve
(b) Humped curve
(c) Downward sloping curve
(d) A line that plots interest rates
3) TDS means _________
(a) Tax deducted at source
(b) Tax deducted at start
(c) Tax deducted at sum
(d) Tax deducted at system
4) Credit risk applies to debt investments such as _________
(a) Shares
(b) Bonds
(c) Mutual Funds
(d) Gold
5) Deduction u/s 80 D for senior citizens ________
(a) 20,000
(b) 25,000
(c) 50,000
(d) 75,000
6) Deduction for self disability can be claimed under ________.
(a) Sec 80C
(b) Sec 80D
(c) Sec 80E
(d) Sec 80U
7) _______ is invalid in the eyes of law.
(a) Mutual
(b) Sham
(c) Duplicate
(d) Concurrent
8) _______ has direct impact on wealth creation.
(a) Economic outlook
(b) Income rate
(c) Interest rate
(d) Erratic cashflows
9) _______ is one of the most preferred tax planning instrument in India as it's a Government scheme.
(a) PF
(b) PPF
(c) FD
(d) Life Insurance plan
10) _______ = Assets - Liabilities
(a) Balance Sheet
(b) Net Worth
(c) P&L
(d) Investment
(b) State whether the following statements are true or false: (any 7) (07)
1) TDS is based on the principle of pay as you earn.
Ans: True
2) Hostility is a code of ethic.
Ans: False
3) Hindu undivided family is not defined in Income Tax Act.
Ans: False
4) Life insurers are not health insurers.
Ans: False
5) Longetivity risk is the risk of outliving your savings.
Ans: True
6) Travel insurance is a type of general insurance.
Ans: True
7) Issue of new shares for cash results in Cash inflow.
Ans: True
8) Retirement planning takes into account all emergencies.
Ans: False
9) House property loss can be set off against salary income.
Ans: True
10) Unemployment is one of the most popular lagging indicator,
Ans: True
November 2024
Q.1. (a) Multiple Choice Questions: (any 8) (08)
1. _______ planning is a way by which you can reduce your tax liability without breaking up any law.
a) Goal
b) Management
c) Tax
d) Currency
2. ________ means marketability of an investment.
a) Planning
b) Liquidity
c) Saving
d) Crediting
3. Accumulation of assets which generate income period of time means ________.
a) Wealth Creation
b) Saving
c) Planning
d) None of the above
4. The term ________ consists of owned by you at the time of your death.
a) Will
b) Career
c) Estate
d) Trust
5. _______ analysis help to know the liquidity position of the company.
a) Cash Flow
b) Expenses flow
c) Real Estate
d) Gross Profit
6. ________ funds are a relatively new approach to retirement investing.
a) Goal Based
b) Optimal
c) Life Cycle
d) None of the above
7. Health Insurance premium provide tax exemption under section ________ Income Tax.
a) 80 A
b) 80C
c) 80 D
d) 80 G
8. ________ applies to debt investment such as bonds.
a) Debit risk
b) Planned risk
c) Currency risk
d) Credit risk
9. _______ insurance principle means both the insured and the have faith in each other.
a) Principle of Indemnity
b) Principle of utmost good faith
c) Principle of contribution
d) Principle of sharing
10. The yield curve is ________ when yield of a s are close to one another.
a) Downward sloping
b) Humped
c) Upward sloping
d) Flat
b) State whether the following statements are true or false: (any 7) (07)
1. CAGR return is same as Holding period return
Ans: False
2. Estate planning is concerned with ensuring adequate coverage against insurable risks.
Ans: False
3. Net worth is Assets + Liabilities.
Ans: False
4. Wealth management is a one-time solution to achieving financial goals.
Ans: False
5. Longevity risk is the risk of outliving your savings.
Ans: True
6. Ratio analysis is an important technique of financial statement analysis.
Ans: True
7. Subrogation is principle, which applied to all contracts of indemnity.
Ans: True
8. Equity risk applies to an investment in shares
Ans: True
9. If the interest rate goes up, the market value of bonds will decrease.
Ans: True
10. Passive management strategies are tax-efficient.
Ans: True
April 2025
Q.1 (a) Match the following (Any 8) (08)
Column A | Column B |
1. Infrastructure Bond | A. When yield of all maturities are close to one another |
2. Flat Yield Curve | B. Deduction u/s 80C |
3. Stock | C. Deduction u's 80D |
4. Mediclaim Premium | D. Deduction u/s 80TTA |
5. HLV | E. Non-Quick Current Liability |
6. Humped Yield Curve | F. One who undertakes the responsibility of risks |
7. Bank Overdraft | G. One for whom the risk is undertaken |
8. Insurer | H. Human Life Value |
9. Insured | i. Quick Current Asser |
10. Interest on Saving Bank Account | J. When short and long term maturity rates are closer to each other as compared to medium term rates |
Ans:
Column A | Column B |
1. Infrastructure Bond | B. Deduction u/s 80C |
2. Flat Yield Curve | A. When yield of all maturities are close to one another |
3. Stock | i. Quick Current Asset |
4. Mediclaim Premium | C. Deduction u's 80D |
5. HLV | H. Human Life Value |
6. Humped Yield Curve | J. When short and long term maturity rates are closer to each other as compared to medium term rates |
7. Bank Overdraft | E. Non-Quick Current Liability |
8. Insurer | F. One who undertakes the responsibility of risks |
9. Insured | G. One for whom the risk is undertaken |
10. Interest on Saving Bank Account | D. Deduction u/s 80TTA |
(b) State whether the following statements are true or false: (any 7) (07)
1) In Investment Life cycle, Consolidation phase is typically when wealth accumulates very slowly.
Ans: False
2) Short term capital loss can be set off with long term and short-term capital gains.
Ans: True
3) Maximum limit us 80 is Ra. 5,00,000
Ans: False
4) Trust is the least important factor that an investor expects from the wealth manager.
Ans: False
5) Economic indicators are used to forecast changes in the business environment.
Ans: True
6) Ratios are generally distorted by inflation.
Ans: True
7) The goal of Annuities is to provide a steady stream of income during employment.
Ans: False
8) Term insurance is a type of Life Insurance Policy.
Ans: True
9) Inflation increases the purchasing power of money over the period of time.
Ans: False
10) Real rate of return is the rate of return on an investment after adjusting for inflation.
Ans: True
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