CWM_LEVEL_2

CWM_LEVEL_2 practice questions, page 4 of 7, with answer review and explanations.

Question 16

For a single income family priority is on

  1. Protecting income via a term plan
  2. Investing in commodities to grow wealth
  3. Investing in mutual funds to grow wealth
  4. All of the above

Question 17

What is the minimum paid up capital needed to form a public limited company?

  1. No Minimum Requirement
  2. Rs. 1,00,000
  3. Rs. 5,00,000
  4. Rs. 10,00,000

Question 18

As per rule 69 of doubling, what is the doubling period if rate of interest is 9%?

  1. 8.5 years
  2. 8 years
  3. 8.4 years
  4. 8.1 years

Question 19

Which of the following is NOT one of the phases of the life-cycle theory of asset allocation?

  1. Accumulation Phase
  2. Consolidation Phase
  3. Taxation Phase
  4. Gifting Phase

Question 20

Which of the following is not a derivative transaction?

  1. An investor buying index futures in the hope that the index will go up
  2. A copper fabricator entering into futures contracts to buy his annual requirements of copper
  3. A farmer selling his crop at a future date
  4. An exporter selling dollars in the spot market