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.

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Investment of Insurance Companies And IRDA Regulations MCQs | Page 2 of 16

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Q11.
Which of the following is considered a real asset?

a.

Equity shares

b.

Corporate bonds

c.

Agriculture farm

d.

Mutual Fund Investment

Discuss
Answer: (c).Agriculture farm Explanation:Real assets include tangible assets like commercial property, land and building, agriculture farm, gold, and precious stones.
Q12.
What gets more importance and value in the economy as the country's financial markets advance and integrate internationally?

a.

Real assets

b.

Government securities

c.

Financial assets

d.

Mutual Fund Investment

Discuss
Answer: (c).Financial assets Explanation:Financial assets get more importance and value in the economy as the country's financial markets advance and integrate internationally.
Q13.
Why is it essential for insurance companies to understand the characteristics of various investment alternatives?

a.

To compete in the insurance market

b.

To comply with international regulations

c.

Due to rapid development and integration of financial markets

d.

To focus on real asset investments

Discuss
Answer: (c).Due to rapid development and integration of financial markets Explanation:Insurance companies need to understand the characteristics of various investment alternatives due to the rapid development and integration of financial markets, making them significant partners in these markets.
Q14.
Why are time and risk considered key factors in investment decisions?

a.

They determine the market value of investments

b.

They influence systematic analysis and careful planning

c.

They impact the classification of bonds and debentures

d.

They are characteristics of different investment avenues

Discuss
Answer: (b).They influence systematic analysis and careful planning Explanation:Time and risk are considered key factors in investment decisions as they influence systematic analysis, careful planning, and prudent investment decisions.
Q15.
What is the significance of the primary data server for investment management?

a.

It should be outsourced to ensure efficiency

b.

It should be located outside the country for security reasons

c.

It should remain within the country for proper internal control

d.

None of the above

Discuss
Answer: (c).It should remain within the country for proper internal control Explanation:The primary data server of the computer application used for investment management shall remain within the country to ensure proper internal control.
Q16.
When is the applicable NAV determined for applications received with local cheques, cash, or demand drafts?

a.

The closing NAV of the same day for applications received before Cut-off Time (3.00pm)

b.

The closing NAV of the next business day for applications received after Cut-off Time (3.00pm)

c.

The closing NAV of the day on which the cheque or demand draft is realized for outstation cheques or demand drafts

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The applicable NAV for applications received with local cheques, cash, or demand drafts depends on whether they are received before or after Cut-off Time (3.00pm) on a business day. For outstation cheques or demand drafts, the closing NAV of the day on which the cheque or demand draft is realized shall be applied.
Q17.
What is the procedure for determining the applicable NAV for applications received on the last business day of the Financial Year?

a.

All applications received on the last business day up to 3 pm processed with NAV of the last business day

b.

Applications received after 3 pm on the last business day fall into the Next Financial Year with NAV of the immediate next business day applicable

c.

The insurer declares NAV for the last business day of a 'Financial year,' even if it is a non-business day

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:For applications received on the last business day of the Financial Year, those received up to 3 pm shall be processed with the NAV of the last business day. Applications received after 3 pm on the last business day fall into the Next Financial Year, and the NAV of the immediate next business day would be applicable. The insurer is required to declare NAV for the last business day of a 'Financial year,' even if it is a non-business day.
Q18.
What is the responsibility of the internal/concurrent auditor related to the reconciliation of product and fund information?

a.

Monthly reconciliation of premium received with fund values

b.

Reporting on the automated system and process quarterly

c.

Annual reconciliation of premium received with fund values

d.

Reconciliation of premium received with fund values on a daily basis

Discuss
Answer: (b).Reporting on the automated system and process quarterly Explanation:The internal/concurrent auditor shall report on the automated system and process to handle the UIN wise reconciliation and value of policy-wise units held by policyholders and fund-wise NAV on a quarterly basis.
Q19.
What positive feature do Preference Shares have?

a.

Unlimited voting rights

b.

Fixed rate of return and redeemable after a fixed period

c.

Guaranteed dividend payments

d.

High market liquidity

Discuss
Answer: (b).Fixed rate of return and redeemable after a fixed period Explanation:Preference shares have the positive feature of bonds, including a fixed rate of return and redeemability after a fixed period, along with voting rights.
Q20.
What does Par Value refer to in the context of bonds?

a.

Market value of the bond

b.

The value of the bond at the time of issue

c.

The promised face value of the bond at maturity

d.

The interest payable to the bondholder

Discuss
Answer: (c).The promised face value of the bond at maturity Explanation:Par Value refers to the face value of the bond and the amount the issuer promises to pay at the time of maturity.
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