CFP: Certified Financial Planner

CFP: Certified Financial Planner practice questions, page 11 of 12, with answer review and explanations.

Question 51

Which one of the following statements is NOT true for a defined-benefit plan? (A) Favours older participants (B) Arbitrary annual contribution (C) Requires an actuary

  1. (A) only
  2. (B) only
  3. (C) only
  4. None of the statements

Question 52

Senior Citizen's Savings Scheme introduced by the Government of India is governed by which Act?

  1. The Companies Act, 1956
  2. The Small Savings & Misc. Savings Act, 1902
  3. The Banking Regulation Act, 1949
  4. The Government Savings Bank Act, 1873

Question 53

An establishment, with 25 employees is covered under Employees Provident Fund and Miscellaneous Provision Act, 1952. What percentage of employee's pay shall be contributed by the employer in Employee's Pension Fund?

  1. 8.33%
  2. 1.16%
  3. 3.67%
  4. 12%

Question 54

Condition in an Insurance Contract is associated with _____________.

  1. exclusions in the Insurance Contract.
  2. limitations on the Insurer's promise to perform.
  3. repudiation of claims in the Insurance Contract.
  4. None of the above

Question 55

Rationale behind principal of indemnity is that ____________.

  1. insured gets compensation to the extent he has insured, irrespective of amount of loss
  2. insured does not profit from insured's loss
  3. insured profits from insured's loss
  4. None of the above