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 4 of 16

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Q31.
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.
Q32.
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.
Q33.
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.
Q34.
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.
Q35.
What type of tax benefit is associated with periodic returns from investments?

a.

Initial Tax Benefit

b.

Continuing Tax Benefits

c.

Terminal Tax Benefits

d.

Tax exemption on dividend income

Discuss
Answer: (b).Continuing Tax Benefits Explanation:Continuing Tax benefits represent tax relief associated with the periodic returns from investments.
Q36.
When does Terminal Tax Benefit occur?

a.

At the time of making the investment

b.

Upon periodic returns from the investment

c.

Upon investment realization or liquidation

d.

During the market fluctuations

Discuss
Answer: (c).Upon investment realization or liquidation Explanation:Terminal Tax-Benefits refer to relief from taxation when an investment is realized or liquidated.
Q37.
What is an example of Terminal Tax Benefit?

a.

Tax exemption on dividend income

b.

Tax on Dividend paid by a domestic company

c.

Withdrawal from a Public Provident Fund account

d.

Tax relief associated with periodic returns

Discuss
Answer: (c).Withdrawal from a Public Provident Fund account Explanation:Withdrawal from a Public Provident Fund account is not subject to tax and is an example of Terminal Tax-Benefit.
Q38.
What is the applicable NAV for applications received after Cut-off Time (3.00pm) on a business day?

a.

The closing NAV of the same day

b.

The closing NAV of the next business day

c.

The NAV of the last business day of the Financial Year

d.

The NAV of the immediate next business day

Discuss
Answer: (b).The closing NAV of the next business day Explanation:For applications received after Cut-off Time (3.00 pm) on a business day, the applicable NAV would be the closing NAV of the next business day.
Q39.
What does the insurer need to reconcile on a day-to-day basis for Unit-linked business?

a.

Premium received with the value of all segregated funds

b.

Premium received with benefits paid

c.

Premium received with charges deducted

d.

Premium received with policyholder expectations

Discuss
Answer: (a).Premium received with the value of all segregated funds Explanation:Every insurer doing Unit-linked business shall reconcile, through the system, the premium received (Net of charges and benefits paid) under each product (Unique Identification Number- UIN) with the value of all the segregated funds (Segregated Fund Identification Number-SFIN) net of fund management charges, held under a single UIN, on a day-to-day basis.
Q40.
What is the requirement for applications received with local cheques, cash, or demand drafts after Cut-off Time (3.00 pm) on a business day?

a.

The applicable NAV would be the closing NAV of the same day

b.

The applicable NAV would be the closing NAV of the next business day

c.

The applicable NAV would be the NAV of the last business day of the Financial Year

d.

The applicable NAV would be the NAV of the immediate next business day

Discuss
Answer: (b).The applicable NAV would be the closing NAV of the next business day Explanation:For applications received with local cheques, cash, or demand drafts after Cut-off Time (3.00 pm) on a business day, the applicable NAV would be the closing NAV of the next business day.
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