CFP: Certified Financial Planner practice questions, page 4 of 12, with answer review and explanations.
Question 16
An HUF consisted of a father, who is a widower, his three sons and a daughter. Upon death of the father what will be the share of his daughter?
One fourth of HUF property.
One fourth plus one sixteenth of HUF property.
One sixteenth of HUF property.
None of the above.
Question 17
Abhishek is working for the Finance Ministry since October 1, 1994. He is entitled to a basic salary of Rs. 6,000 pm. Dearness Allowance is 40% of Basic Salary for retirement benefits. He retired from his job on January 1, 2008 (3 months before the end of F.Y 2007-08) and shifted to his village. He is entitled to the following benefits at the time of retirement. Gratuity = Rs. 98,000. Pension from January 1, 2008 = Rs. 2000 per month. Payment from recognized PF = Rs. 3,00,000. Encashment of earned leave for 150 days = Rs. 36,000. He was entitled to 40 days leave for every completed year of service. He got 50% of his pension commuted in lump sum w.e.f March 1, 2008 and received Rs. 1,20,000 as commuted pension. Abhishek contributes Rs. 900 per month to RPF to which his employer contributes an equal amount. What is the amount of commuted pension that will be exempt for Abhishek for the FY 2007-08?
NIL
Rs. 40,000
Rs. 80,000
Rs. 1,20,000
Question 18
Binding Authority of an insurance broker means __________.
the authority of brokers to accept risks within certain limits and term as set out by the Insurers
the contract by which a broker is bound to the insurance companies
the contract by which a broker is bound to the clients
the regulatory authority that binds brokers to the regulations
Question 19
Vinod invests Rs. 1,50,000 in shares of XYZ ltd on 1st December 2006 and receives a dividend of Rs. 25,000 on 31st March 2007, the record date. The investment is sold on 2nd June 2006 in NSE for Rs. 1,20,000. How much short term loss, if any, arising out of this investment is allowable for set-off in FY 2007-08?
Rs. 25,000.
Rs. 5,000, since provisions of Sec. 94(7) will apply.
NIL
Rs. 30,000.
Question 20
Consider that an investor writes a covered call on XYZ share. Spot price is Rs. 38, Exercise price is Rs. 40 and a 3 month call on XYZ share is traded at Rs. 3. What is the initial cash flow incurred at the time of investment?