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 9 of 16

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Q81.
Which of the following is a financial asset?

a.

Equity shares

b.

Debentures

c.

G-Secs

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Equity shares represent ownership in a company and are considered financial assets. Debentures are long-term debt instruments issued by companies, and they fall under the category of financial assets. G-Secs are debt securities issued by the government, and they are also classified as financial assets.
Q82.
___________ reflects volatility of return on an investment relative to market swings.

a.

Variance

b.

Alpha

c.

Beta

d.

Standard deviation

Discuss
Answer: (c).Beta Explanation:Beta reflects the volatility of return on an investment relative to market swings. A beta greater than 1 indicates higher volatility than the market, while a beta less than 1 suggests lower volatility.
Q83.
Which of the following Government securities are rooted with derivatives, such as call options and put options?

a.

Securities with embedded derivatives

b.

Zero coupon bonds

c.

Securities with variable coupon rates

d.

Securities with fixed coupon rates

Discuss
Answer: (a).Securities with embedded derivatives Explanation:These government securities have embedded derivatives, such as call options or put options. Embedded derivatives are components within a financial instrument that have characteristics of standalone derivatives.
Q84.
What is the maximum period of maturity for money market instruments?

a.

Two years

b.

One year

c.

Three years

d.

Five years

Discuss
Answer: (b).One year Explanation:Money market instruments are short-term debt instruments that have maturities typically ranging from overnight to one year. These instruments are designed for short-term funding and liquidity management.
Q85.
What is the limit of investment in immovable property covered under Section 27A(1 )(n) of the IRDA regulations in case of General Insurer?

a.

1% of the Investment Assets

b.

2% of the Investment Assets

c.

3% of the Investment Assets

d.

5% of the Investment Assets

Discuss
Answer: (c).3% of the Investment Assets Explanation:The limit of investment in immovable property covered under Section 27A(1)(n) of the IRDA regulations for a General Insurer is 3% of the Investment Assets.
Q86.
As per Regulation 13, provision on investment management, for applications received, with local cheques payable at par at the place where the premium is received, before cut-off Time (3.00pm) on a business day, what will be the applicable NAV?

a.

The opening NAY of same day

b.

The closing NAY of same day

c.

The opening NAY of next day

d.

The closing NAY of next day

Discuss
Answer: (b).The closing NAY of same day Explanation:For applications received with local cheques payable at par at the place where the premium is received, before the cut-off time (3:00 pm) on a business day, the applicable NAV would be the closing NAV of the same day.
Q87.
As per Directives for Investment in Alternative Investment Funds for insurers, what is the permissible limit of exposure to a single AIF or venture fund for insurers?

a.

Not more than 1 percent of fund size

b.

Not more than 5 percent of fund size

c.

Not more than 10 percent of fund size

d.

Not more than 20 percent of fund size

Discuss
Answer: (c).Not more than 10 percent of fund size Explanation:The permissible limit of exposure to a single Alternative Investment Fund (AIF) or venture fund for insurers is not more than 10 percent of the fund size.
Q88.
When does Maturity date of a bond occur?

a.

At the time of issue

b.

After the bondholder receives interest payments

c.

When the principal amount is payable by the borrower to the bondholder

d.

On the date of purchase

Discuss
Answer: (c).When the principal amount is payable by the borrower to the bondholder Explanation:Maturity date refers to the date when the principal amount of borrowings is payable by the borrower to the bondholder.
Q89.
What is the characteristic of Money Market Investments in terms of maturity?

a.

Maturity of more than one year

b.

Maturity of exactly one year

c.

Maturity of less than one year

d.

No fixed maturity

Discuss
Answer: (c).Maturity of less than one year Explanation:Money Market Investments are debt instruments with a maturity of less than one year at the time of issue, including Treasury Bills, Commercial papers, and Certificate of Deposits.
Q90.
How are Mutual Fund Investment schemes broadly classified?

a.

Profit and non-profit schemes

b.

Equity and hybrid schemes

c.

Short-term and long-term schemes

d.

Active and passive investment schemes

Discuss
Answer: (b).Equity and hybrid schemes Explanation:Mutual fund Investment schemes are broadly classified into Equity Schemes, Debt Schemes, and Balanced funds, among others.
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