GLO_CWM_LVL_1 by AAFM Valid Free Exam Practice Test

Question 1

A "Mass Affluent" segment client has investible assets worth of

A. None of the above B. $100,000 C. $200,000 D. $50,000

Correct Answer: B

Question 2

The income of any university or other educational institution existing solely for educational purposes and not for the purposes of profit is exempt under clause (iiiad) of Section 10(23C) if the aggregate annual receipts' of such univer*sity or educational institution do not exceed.

A. Rs. 10 crores, B. Rs.100 crores, C. Rs.1 crore, D. Rs. 10 lakhs

Correct Answer: C

Question 3

For calculating the benefit under Entertainment allowance, salary means,

A. Basic Salary + DA B. Basic Salary C. Basic Salary + DA + commission + Bonus D. Basic Salary + DA + commission

Correct Answer: A

Question 4

Ram is working in Rashid Enterprises, a proprietorship firm.During his working hours Ram was injured seriously. Due to this injury Ram was hospitalized for six months. Ram is the only bread winner of his family.
Ms. Rashid, the proprietor of Rashid Enterprises is liable to pay damages to Ram. Under which of the following policy Rashid can protect himself from this liability?

A. Product Liability Insurance B. Employer's Liability Insurance Policy C. The Directors' and officers liability policy D. Key Person Life Insurance Policy

Correct Answer: C

Question 5

Which of the following statement is true?

A. The Treynor index assumes that portfolios are not well diversified. B. Option A and B C. The Sharpe index standardizes performance by the portfolio's beta. D. The Jensen index compares actual performance to the risk-adjusted required performance.

Correct Answer: D

Question 6

There are two parties to Power of Attorney, namely, Donor and Donee.

A. Only i is correct B. Both (i) & (ii) are incorrect C. Both (i) & (ii) are correct D. Only ii is correct

Correct Answer: C

Question 7

Shweta joins a private limited company covered under the PF Act. The employer contributes for all employees up to the specified salary limit. Her monthly salary consists of Rs. 10000 as basic, Rs. 5000 as DA and 10% of the basic as HRA. What would be the deduction from her monthly salary towards the statutory PF benefits?

A. Rs. 1920 B. Rs. 1200 C. Rs. 1800 D. Rs. 780

Correct Answer: D

Question 8

Principal vectors of an active portfolio strategy are:

A. Sector rotation. B. Security selection. C. Market timing. D. All of the above.

Correct Answer: D

Question 9

NRO can be opened by a

A. All of the above B. Resident C. None of the above D. Resident

Correct Answer: A

Question 10

A client has a minor child she is concerned about what might happen if she was to die while the child was still young and unable to sensibly handle a sizeable in heritance one solution could be to draft her will so that the child receives the asset once reaching age 21 this is an example of

A. A testamentary trust B. An inter vivo trust C. A family trust D. A discretionary trust

Correct Answer: A

Question 11

Consideration' under the law is a return promise to:

A. (I), (III), and (IV) only B. (I), (II), and (IV) only C. (I), (II), and (III) only D. (II), (III), and (IV) only

Correct Answer: C

Question 12

_______ is an Over the Counter market

A. None of the above B. Forex C. Debt D. Equity

Correct Answer: B

Question 13

In case of public company memo must be signed by atleast ....... persons.

A. One B. Seven C. Ten D. Two

Correct Answer: B

AAFM Chartered Wealth Manager (CWM) Global Examination - GLO_CWM_LVL_1 Exam Practice Test