Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, 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 Mutual Fund,Venture Capital,Life Insurance Policies and AIFS 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 Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS 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 Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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So, are you ready to put your Mutual Fund,Venture Capital,Life Insurance Policies and AIFS knowledge to the test? Let's get started with our carefully curated MCQs!

Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 11 of 18

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Q101.
What is the consequence if a venture capital fund is found to have provided false or misleading information in its application?

a.

The application will be accepted without any consequences.

b.

SEBI will issue a warning to the fund.

c.

SEBI can reject the application after giving the applicant a reasonable opportunity of being heard.

d.

SEBI will fine the fund.

Discuss
Answer: (c).SEBI can reject the application after giving the applicant a reasonable opportunity of being heard. Explanation:If a venture capital fund is found to have provided false or misleading information in its application, SEBI can reject the application after giving the applicant a reasonable opportunity of being heard.
Q102.
What is the primary characteristic of a Term Insurance plan?

a.

It provides both death cover and savings element.

b.

It only provides death cover.

c.

It is an investment avenue.

d.

It is suitable for long-term financial planning.

Discuss
Answer: (b).It only provides death cover. Explanation:Term Insurance plans provide only death cover. If the insured does not die within the specified period, no payment is made under term insurance.
Q103.
What is the policy tenure for Term Insurance?

a.

It is always for the entire lifetime.

b.

It is fixed at 20 years for all policies.

c.

It can vary, ranging from one year to a specified age, depending upon the profile of the life assured.

d.

It is fixed at 10 years for all policies.

Discuss
Answer: (c).It can vary, ranging from one year to a specified age, depending upon the profile of the life assured. Explanation:The policy tenure for Term Insurance can vary, ranging from one year to a specified age, depending upon the profile of the life assured.
Q104.
What happens if the insured person lives beyond the policy term in Term Insurance?

a.

The company pays the face value of the policy to the beneficiary.

b.

The company pays a maturity benefit to the insured person.

c.

No benefit is payable to the insured person.

d.

The company refunds the premiums paid by the insured person.

Discuss
Answer: (c).No benefit is payable to the insured person. Explanation:If the insured person lives beyond the policy term in Term Insurance, no benefit is payable to him.
Q105.
What is the key characteristic of Term Insurance?

a.

It has a savings element or cash value.

b.

It provides coverage for a fixed rate of payments for a fixed period of time.

c.

It is primarily used for investment avenues.

d.

It is suitable for portfolio management.

Discuss
Answer: (b).It provides coverage for a fixed rate of payments for a fixed period of time. Explanation:A key characteristic of Term Insurance is that it provides coverage at a fixed rate of payments for a fixed period of time.
Q106.
What is the primary purpose of whole life insurance?

a.

To provide coverage for a specified time period.

b.

To provide coverage for the entire lifetime of the insured.

c.

To accumulate a cash value for the insured.

d.

To invest in securities for the insured.

Discuss
Answer: (b).To provide coverage for the entire lifetime of the insured. Explanation:The primary purpose of whole life insurance is to provide coverage for the entire lifetime of the insured.
Q107.
How does the premium payment in whole life insurance differ from term insurance?

a.

Premiums are only paid for a set number of years in whole life insurance.

b.

Premiums are paid throughout the lifetime of the insured in whole life insurance.

c.

Premiums are paid only at the younger ages in whole life insurance.

d.

Premiums are paid only in the older stage of life in whole life insurance.

Discuss
Answer: (b).Premiums are paid throughout the lifetime of the insured in whole life insurance. Explanation:In some forms of whole life insurance, premiums are required to be paid throughout the lifetime of the insured.
Q108.
What is the purpose of the reserve element (cash value) in whole life insurance?

a.

To increase the premium rate.

b.

To pay for the policy in the earlier years.

c.

To level out the increasing cost of insurance in the older stage of life.

d.

To provide a return of savings element.

Discuss
Answer: (c).To level out the increasing cost of insurance in the older stage of life. Explanation:The reserve element (cash value) in whole life insurance helps level out the increasing cost of insurance in the older stage of life.
Q109.
What is the characteristic of cash value life insurance?

a.

It does not have a savings element.

b.

It has a return of savings element.

c.

It is primarily used for corporate finance.

d.

It requires premiums to be paid only in the younger ages.

Discuss
Answer: (b).It has a return of savings element. Explanation:Cash value life insurance has a return of savings element.
Q110.
What are the two basic forms of whole life insurance?

a.

Non-Participating Whole Life and Universal Life.

b.

Participating Whole Life and Excess Interest Whole Life.

c.

Universal Life and Limited Payment Whole Life.

d.

Traditional Whole Life and Interest Sensitive Whole Life.

Discuss
Answer: (d).Traditional Whole Life and Interest Sensitive Whole Life. Explanation:The two basic forms of whole life insurance are Traditional Whole Life and Interest Sensitive Whole Life.
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