CFP: Certified Financial Planner practice questions, page 6 of 12, with answer review and explanations.
Question 26
(A) Interest income of the Employees' contribution in an Unrecognised Provident fund is Tax exempt. (B) The employee's contribution to an unrecognised Provident fund is tax exempt under Sec. 80 C upto the limit of Rs. 1,00,000.
(A) only is correct
(A) & (B) both are wrong.
(A) & (B) both are correct
(B) only is correct.
Question 27
A recognized Provident Fund acquires its status on recognition by ___________.
SEBI
Income Tax authorities
PF Commissioner
Labour Ministry
Question 28
A Life insurer receives an application for Rs. 20 crores. However the insurer is not ready to take this risk, but simultaneously does not want to leave the business. The insurer company shops around and contracts another insurer to assume a certain percentage of loss for a corresponding percentage of premiums. This is a case of _____________.
Facultative reinsurance
Treaty reinsurance
Both of the above
None of the above
Question 29
Madhu is in the business of buying houses, fixing them up and reselling them at a profit. She is considering purchasing a house but knows that she has to invest Rs. 2,50,000 at the end of the first month and Rs. 50,000 at the end of 6 months to restore the house before selling it. She expects to sell the house at the end of 18 months for Rs. 17,60,000. If Madhu requires a 25% compounding monthly on her investments and there is a 6% real estate brokerage payable for these transactions (buy & sell), what is the maximum amount she can offer to buy the house?
Rs. 9,06,880
Rs. 8,04,114
Rs. 8,72,850
Rs. 8,52,360
Question 30
The " Trigger option " in a mutual fund refers to a facility ___________.
Enabling pre-determined exit from a scheme once a certain profit level has been attained
Enabling pre-determined entry into a scheme once a certain NAV level has been attained