CFP: Certified Financial Planner

CFP: Certified Financial Planner practice questions, page 7 of 12, with answer review and explanations.

Question 31

Under the provisions of Income Tax Act, 1961, "Transport Allowance" is exempt upto

  1. Rs. 800 per month
  2. Rs.400 per month
  3. Rs. 500 per month
  4. Rs. 9000 per year lump sum

Question 32

Which of the following is not the mode of revocation of a Will?

  1. By Destruction
  2. By Marriage
  3. By another Will or Codicil
  4. By Insolvency of the testator

Question 33

Quick asset ratio is used to:

  1. Determine the Investment Capacity of the Firm
  2. Determine firm's liquidity to cover unexpected payment
  3. Determine the current assets of the firm
  4. Determine the current liabilities of the firm

Question 34

Reliable age proof must be given along with the proposal form of life insurance which could be a : (A) Certified copy of birth certificate of Municipal Corporation (B) Marriage certificate issued by Marriage Registrar (C) Registered document of property ownership

  1. (A)
  2. (B)
  3. Either (A) or (B)
  4. Either (A) or (C)

Question 35

Mr. Singh bought a Rs. 10 lakh term life Insurance Plan on 10 Aug 2006 by payment of Regular premium of Rs. 3,200 for 15 years. On July 15 2008 Mr. Singh committed suicide. What is the benefit amount payable to Mr. Singh's beneficiary, assuming the premiums were paid as agreed?

  1. Rs. 3200
  2. NIL
  3. Rs. 3,200 + interest
  4. Rs. 10,00,000