Investment of Insurance Companies And IRDA Regulations MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Investment of Insurance Companies And IRDA Regulations, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Investment of Insurance Companies And IRDA Regulations MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Investment of Insurance Companies And IRDA Regulations mcq questions that explore various aspects of Investment of Insurance Companies And IRDA Regulations problems. Each MCQ is crafted to challenge your understanding of Investment of Insurance Companies And IRDA Regulations principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Investment of Insurance Companies And IRDA Regulations MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Investment of Insurance Companies And IRDA Regulations. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Investment of Insurance Companies And IRDA Regulations knowledge to the test? Let's get started with our carefully curated MCQs!

Investment of Insurance Companies And IRDA Regulations MCQs | Page 10 of 16

Discover more Topics under IC 89 Management Accounting

Q91.
What is the significance of Real Estate investment?

a.

Provides steady income with low risk

b.

Draws tremendous attention of investors

c.

Has a short maturity period

d.

Is mainly focused on agricultural land

Discuss
Answer: (b).Draws tremendous attention of investors Explanation:Real estate investment has drawn the tremendous attention of investors due to its good rate of return on investment.
Q92.
What is the primary purpose of Financial Derivatives?

a.

Providing steady income

b.

Speculative purposes

c.

Minimizing return on investment

d.

Offering low-risk investment

Discuss
Answer: (b).Speculative purposes Explanation:Financial Derivatives, such as Options and Futures, are used for hedging risks as well as speculative purposes.
Q93.
Which of the following is considered a non-marketable financial asset?

a.

Treasury Bills

b.

Company deposits

c.

Commercial papers

d.

Mutual Fund Investments

Discuss
Answer: (b).Company deposits Explanation:Non-marketable financial assets include forms like bank deposits, post office deposits, company deposits, and provident fund deposits.
Q94.
How is the rate of return on an investment calculated for a period?

a.

[Annual income + Price at Beginning] / Price at End

b.

[Annual income + (Price at End - Price at Beginning)] / Price at Beginning

c.

[Annual income - (Price at End - Price at Beginning)] / Price at End

d.

[Annual income - Price at Beginning] / Price at End

Discuss
Answer: (b).[Annual income + (Price at End - Price at Beginning)] / Price at Beginning Explanation:The rate of return on an investment for a period is calculated using the formula: Rate of Return=Annual income+(Price at End−Price at Beginning)Price at BeginningRate of Return=Price at BeginningAnnual income+(Price at End−Price at Beginning)​
Q95.
What does Risk on Investment refer to?

a.

Probability of earning high returns

b.

Chance of loss of expected return on investment

c.

Marketability of investment

d.

Tax benefits on investment

Discuss
Answer: (b).Chance of loss of expected return on investment Explanation:Risk on Investment refers to the chance of loss of expected return on investment.
Q96.
How is Variance defined in the context of investment evaluation?

a.

Mean of the squares of the deviations of returns

b.

Sum of the squares of the deviations of returns

c.

Square root of the mean of the deviations of returns

d.

Average value of the deviations of returns

Discuss
Answer: (a).Mean of the squares of the deviations of returns Explanation:Variance is defined as the mean of the squares of the deviations of returns with reference to their average value.
Q97.
What is the significance of Beta in investment evaluation?

a.

Reflects volatility of return relative to market swings

b.

Measures marketability of investment

c.

Indicates liquidity of an investment

d.

Determines tax benefits on investment

Discuss
Answer: (a).Reflects volatility of return relative to market swings Explanation:Beta reflects the volatility of return on an investment relative to market swings.
Q98.
Why is high marketability considered a desirable factor in investment?

a.

It ensures high returns

b.

It minimizes tax liabilities

c.

It allows investors to change their decisions easily

d.

It guarantees no loss on investment

Discuss
Answer: (c).It allows investors to change their decisions easily Explanation:High marketability or liquidity is considered a desirable factor as it allows investors to change their decisions and rectify possible errors or mistakes in earlier investment decisions.
Q99.
What does Initial Tax Benefit refer to?

a.

Tax relief associated with periodic returns

b.

Tax relief enjoyed at the time of making investment

c.

Relief from taxation upon investment realization

d.

Tax exemption on dividend income

Discuss
Answer: (b).Tax relief enjoyed at the time of making investment Explanation:Initial tax benefit refers to tax relief enjoyed by the investor at the time of making the investment.
Q100.
Under which section can an individual or HUF enjoy tax deduction for investments made in Equity Savings Scheme?

a.

Section 80C

b.

Section 80CCG

c.

Section 10

d.

Section 115-O

Discuss
Answer: (b).Section 80CCG Explanation:Under sec. 80CCG, any investment made under any Equity Savings Scheme is subject to deduction, subject to a limit of Rs.25000.
Page 10 of 16